An Assessment Of Prospect And Challenges Of Distribution Of Goods By Road In Nigeria (A Case Study Of Cement Distribution By Dangote Group Of Companies)

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An Assessment Of Prospect And Challenges Of Distribution Of Goods By Road In Nigeria (A Case Study Of Cement Distribution By Dangote Group Of Companies)

Chapter One

Introduction

1.1 Background to the Study

Road is the major mode of transport system in Nigeria. Even in terms of haulage of goods, the advent of motor vehicles revolutionized transport and constituted a challenge to the railroads. According to Stanford Research Institute (1963), Road transport as at 1953 was carrying 50% of the total ten-miles of freight in Nigeria and by 1960; the proportion had increased to 62% while the total traffic carried by all forms of transport had more than doubled. In the urban area a greater percentage of the people depended on public transport while the private transport system had the other percentage.(Ogunbodede, 1990; Ogunjumo, 1986; Okpala 1981 and Mrakpor, 1986).This was a result of rapid economic development in Nigeria. Public transport was mainly control by the private sector. Consequently they formulated and implemented policies in the sector in Nigeria. In the early 1960s, the macro-economic indicators, which are yardsticks for measuring all aspects of the growth of Nigeria’s economy, were consistently positive. This was because the nation depended much on agricultural products for its foreign exchange earnings and a low proportion of the population were engaged in white-collar job.. It plays a very significant role in the economic development of a country. The importance of road transport includes carrying goods that are heavy, bulky and affordable. Transporting perishable goods such as vegetables, fruits, eggs, milk. It also serve as a means of moving goods and people over short distances; transporting delicate goods such as chinaware or glassware. However good transport means were not readily available in the rural areas. The research seek to investigate the An assessment of prospect and challenges of distribution of goods by road in Nigeria a case study of cement distribution by Dangote group of companies.

1.2 Statement of the Problem

Road transport as at 1953 was carrying 50% of the total ten-miles of freight in Nigeria and by 1960; the proportion had increased to 62% while the total traffic carried by all forms of transport had more than doubled. In the urban area a greater percentage of the people depended on public transport while the private transport system had the other percentage. (Ogunbodede, 1990; Ogunjumo, 1986; Okpala 1981 and Mrakpor, 1986).This was a result of rapid economic development in Nigeria. Public transport was mainly control by the private sector. Consequently they formulated and implemented policies in the sector in Nigeria. In the early 1960s, the macro-economic indicators, which are yardsticks for measuring all aspects of the growth of Nigeria’s economy, were consistently positive. This was because the nation depended much on agricultural products for its foreign exchange earnings and a low proportion of the population were engaged in white-collar job.. It plays a very significant role in the economic development of a country. The importance of road transport includes carrying goods that are heavy, bulky and affordable. Transporting perishable goods such as vegetables, fruits, eggs, milk. It also serves as a means of moving goods and people over short distances. However the sector is besieged by some problem which include economic depression, over population in the urban cities, poor maintenance culture of public sector vehicles, activities of toutes who pose as road transport workers, etc. The problem confronting the research is to proffer an assessment of prospect and challenges of distribution of goods by road in Nigeria a case study of cement distribution by Dangote group of companies.

1.2 Objectives of the Study

To proffer an assessment of prospect and challenges of distribution of goods by road in Nigeria a case study of cement distribution by Dangote group of companies

1.3 Research Questions

  1. What are the challenges and prospect of the distribution of goods by road in Nigeria?
  2. What are the prospect and challenges of distribution of cement by Dangote group of companies?

1.4 Significance of the Study

The study shall proffer an assessment of prospect and challenges of distribution of goods by road in Nigeria a case study of cement distribution by Dangote group of companies

1.5 Research Hypothesis

  1. Ho The challenges of the distribution of cement by dangote group of companies in Nigeria is low
    Hi The challenges of the distribution of cement by dangote group of companies in Nigeria is high
  2. Ho The prospect of the distribution of cement by dangote group of companies in Nigeria is low
    Hi The prospect of the distribution of cement by dangote group of companies in Nigeria is high

1.6 Scope of the Study

The study focuses on proffering ,An assessment of prospect and challenges of distribution of goods by road in Nigeria a case study of cement distribution by Dangote group of companies

1.7 Limitations of the Study

The study was confronted by some constraints including logistics and geographical factors.

1.9 Definition of Terms

Road Transport

Road transport constitutes the conveyance of goods and passengers on land from one destination to another over a short period of time.

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