Evaluation Of Rural Transportation And Its Environment


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Project and Seminar Material for Transport Management Technology

Evaluation Of Rural Transportation And Its Environment


Abstract


Freight and passenger movement have become increasingly dependent on the road system to meet virtually all inland transport needs in Nigeria. Three major issues were identified to affect the Nigerian road network; axle overloading, neglect of routine maintenance and inadequate design and construction. However, the decline in road infrastructure vis a vis the boom in government expenditure between 1999 and 2011 raises several questions. This study was therefore carried out on evaluation of rural transportation and its environment, a case study of Bida-SacciNupeko-Pategi Fedral Road between 1999 and 2011.

The study also evaluated the effectiveness of government spending on the quality and quantity of Nigerian federal roads. First, data on government budget and spending on highway construction and rehabilitation for the period 1999 to 2011 was collected from the Federal Ministry of Works and analyzed. The study was analyzed using graph showing the present condition of the road and data from questionnaire administered on a sample of thirty road users including drivers and passengers. The Statistical Package for Social Science (SPSS) was used to generate tables for frequencies and percentages. Results were thereafter presented in tables and analysed using simple statistical parameters such as frequencies and percentages. Findings revealed that the federal government spends less than it allocates in its annual budgets for the period of this study. Also, the pattern of allocation was inefficient as they were more likely to increase project cost and increase further the risk of abandonment of projects. Findings also show that although there was budget for the construction and rehabilitation of Bida-Sacci-Nupeko-Pategi federal road from year 2000 to 2011, money was released for spending only for year 2002 to 2008, no fund was released in years 2000 and 2001, and 2009 to 2011. Graphical evidence of the present condition of the road reveals a dilapidated and abandoned road.

Sixty percent of the samples of road users agree that the condition of the road has not improved. Rather, that it had declined thereby increasing their traveling time by about thirty six percent. Sixty three percent of the sample feels the road is of poor quality, poor safety design thereby causing their vehicle maintenance cost to increase by about thirty six percent. Sixteen percent of the sample confirmed that the road had been abandoned. The study therefore concludes that inefficiencies in government budget allocation and spending affects efficiency in output and effectiveness of outcomes. The study further recommends an improvement in the budget process by specifying the spending plans for road infrastructure projects and budget discipline in fund releases.


Table Of Contents


Preliminary Page(s)

  • Title page
  • Certification page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One:

Introduction

  • 1.1 Background to the Study
  • 1.2 Statement of the Problem
  • 1.3 Research Objectives
  • 1.4 Research questions
  • 1.5 Significance of the Study
  • 1.6 Scope of the study
  • 1.7 Organization of Work

Chapter Two:

Literature Review

  • 2.1 Conceptual Literature
  • 2.2 Current State of Road Transport in Nigeria
  • 2.2.1 The state of the transport system
  • 2.2.2 Transport Policies in Nigeria
  • 2.3 Theoretical Literature
  • 2.3.1 Nexus between Transport and Economic Growth/Competitiveness
  • 2.3.2 Budgeting and Budget Structure
  • 2.3.3 Public Infrastructure Funding Models
  • 2.3.4 Maintenance Models
  • 2.4 Empirical Literature
  • 2.4.1 Nexus between Road Transport and Growth
  • 2.4.2 Efficiency and Effectiveness of Government Spending on Transport Infrastructure

Chapter Three:

Methodology

  • 3.1 Conceptual Framework
  • 3.2 Empirical Framework
  • 3.2.1 Analysis of Budget Allocations and Actual Expenditure
  • 3.2.2 Case Study
  • 3.3 Sampling Procedure and Sample Size
  • 3.4 Sources of Data
  • 3.5 Analysis and Presentation of Data

Chapter Four:

Data Presentation, Results And Analysis

  • 4.1 Analysis of Budget Allocations and Actual Expenditure on the Nigerian Federal Roads Since 1999 to 2011
  • 4.2 Budget Estimates and Budget Releases for Highway Projects in the Geopolitical Zones
  • 4.3 Analysis of Output and Outcomes

Chapter Five:

Summary, Conclusion And Recommendations

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendations
  • References

Chapter One


Introduction

1.1 Background to the Study

Moving goods and people from one place to another is critical to maintain strong economic and political ties between regions in the same state. With a land area of 910,768 sq. km, population estimate of 150 million people and GDP-growth rate of 6% per annum (2006 est), the centrality of effective public transportation in Nigeria is readily seen. Nigeria‘s transportation infrastructure is in a dismal state and falls short of the countries it would like to be compared with. It is insufficient to meet the transformation agenda of the current administration, as a tool for achieving rapid economic growth and development [Walker, Gilbert James].

A well-developed transport and communication network is a pre-requisite to competitiveness and economic development. Effective modes of transport, including quality roads, ports and air transport enable entrepreneurs to get their goods and services to the market in a secure and timely manner and facilitate the movement of workers to the most suitable jobs. However, out of the 139 countries assessed by the Global competitiveness report in the 2010-11 year, Nigeria declined in the rankings to 127th from 99th position. Nigeria also receives poor assessment for its infrastructure, ranked 135th and placing 128th for quality of its roads. Railroad infrastructure placed 104th, quality of port infrastructure and air infrastructure placed 121th and 101th respectively (The Global Competitiveness Report, 2010-11).

The Nigerian transport system consists of the following modes: road, rail, maritime (water), pipelines and air. From available statistics, the bulk of cargo transported round Nigeria makes use of the road system. The pipeline system (crude oil 2,042 km; petroleum products 3,000 km; natural gas 500 km) basically is used to transport oil, gasoline, diesel, natural gas and others, the air system are probably the less used in comparison with the rest (Madu, 2011).

An “efficient transport system” means that the transport services are provided in a way that ensures resources are used efficiently and the economic potential of appropriate technology is used to achieve sustainable gains in productivity in order to reduce costs and improve service quality. An efficient transport system also implies the progressive reduction of social costs, the control of other external costs of transport, and the expenditure of public funds in a way that is properly justified and carefully managed (Engel et. al, 2009).

Nevertheless, the imbalance in the supply and demand for transport capacity and the development of the different modes of transport has increased since the first comprehensive draft transport policy of 1993 for Nigeria. Though efforts have been made to provide adequate transport of all modes, notwithstanding, the demand for transport services in Nigeria seems to exceed the supply (Draft National Transport Policy, 2010).

Filani (2002) found that over 90% of the country‟s goods and freight movement is accounted for by the road transport. Only 50% of federal roads and 20% of state roads are in good condition while a meager 5% of rural roads are freely motorable despite several reforms in the transport sector (Oni, 2009).


1.2 Statement of the Problem

The term rural transport services, has particular attributes that has made it a subject of special interest in research, policy and development planning. For the purpose of this research project, we refer to rural transport services as that continuum of transport activities and operations that connect rural households and farms to primary market centres with secondary rural markets and services centres, such as are found at the divisional administrative centres. Distinguishing features of rural transport systems as compared to urban transport systems is not only their infrequency, unreliability and high/km costs, but also their invisibility to policy makers

The issue of improving rural transport services is intertwined with other development challenges facing rural areas.

These include:

  • Low densities and volumes of economic activities which leads to a weak resource base for financing improvements,
  • Lack of innovation to bring forth new, affordable and appropriate transport technologies that are suited to rural operating conditions,

Absence of decentralized planning frameworks and therefore, weak institutional structures and partnerships for managing development -including transport services-in rural areas. About 60% of the road network is in rural areas, most of it is unpaved and is severely degraded owing to lack of maintenance. The length of roads in poor condition increased from 28% to 42% between 1994 and 1997.

In 1993, Nigeria introduced the first comprehensive National Transport policy which stated that “the Nigerian transport system was in crisis‟‟. One of the principal causes identified was “a major imbalance between the needs of Nigerian society and economy for adequate transport facilities and the ability of the transport sector to meet such demands”. This statement was said to remain valid till in 2010, in respect of most of the transport system. The imbalance in supply and demand for transport capacity, the development of the different modes of transport, has in fact increased over the period since the first comprehensive draft transport policy of 1993 for Nigeria (Draft National Transport Policy of Federal Republic of Nigeria, 2010).

However, infrastructure is the second among the twelve basic pillars that serve as indicators of the competitiveness of a given country in the computation of the Global Competitiveness index. Nigeria received poor assessment for its infrastructure, the country scored 135th out of the 139 countries covered in the 2010-2011 Global Competitiveness Report. The forum noted that 65% of the 198,000 km Nigerian roads were in bad condition while inadequate supply of infrastructure placed second and accounts for 21.2% among the seven most problematic factors for doing business in Nigeria (The Global Competitive Report, 2010-11).

Three major issues were identified to affect the Nigerian road network, arising from the fact that the country has become increasingly dependent on the road system to meet virtually all its inland transport needs. These include: axle overloading causing damage to roads, neglect of routine maintenance and inadequate design and construction (Draft National Transport policy for Nigeria, 2010).

One of the major challenges faced by investors (both public and private) in Nigeria is that of infrastructure deficit. Out of Nigeria‟s 198,000 km of roads, less than 20% are paved and more than 65% are in bad condition, compared to South Africa‟s 362,099 km of roads out of which 73,506 km are paved (2002 estimate) and the rest in good motorable condition. The Nigerian Rail way Corporation which was established in 1955 has 3,798km of rail comprising 3,505 km obsolete narrow gauge rail and 293 km standard gauge that carries less than 1% of freight traffic compared with a global average of 46% (Ohia, 2011).

The annual loss due to bad roads is valued at N80 billion, while additional vehicle operating cost resulting from bad roads is valued at N53.8 billion, bringing the total loss per annum to NB133.8 billion (Federal Ministry of Work & Housing quoted in CBN, 2003 Report). This figure does not take into account the man-hour losses in traffic due to bad roads and other emotional and physical trauma people go through plying the roads and the consequent loss in productivity. The poor state of roads in the country also accounts for the addition to the cost of operating vehicles as Nigerians are reported to spend over N487 billion annually to keep their vehicles on the road, small car owners in the country reportedly spend a total of N219, 500 for every 10, 000 kilometres of roads used, making the cost of operating vehicles in the country perhaps one of the highest in the world (Adewakun et. al, 2010).

The decline in road infrastructure vis a vis the boom in government expenditure between 1999 and 2011 raises several questions. First, what is the trend of government expenditure on road transport infrastructure? Second, what is the effectiveness of the government spending on road infrastructure?


1.3 Research Objectives

The main objective of this study is to evaluate the rural transportation and its environment.

The following are the specific objectives of the study:

  1. To analyse the trend of government budget and spending on road transport infrastructure; and
  2. To evaluate the effectiveness of government spending on the quality and quantity of Nigerian roads.

1.4 Research questions

  1. What are the trend of government budget and spending on road transport infrastructure?
  2. What are the effectiveness of government spending on the quality and quantity of Nigerian roads?

1.5: Significance of the Study

Transport by road of persons and goods are responsible for the major part of transport movements in Nigeria. Road transport is also a major user of scarce resources – vehicles and parts (imported or with import content), fuel and skilled labour. Thus, the efficiency of this sector is of significant public interest (Draft National Transport Policy, 1993).

Findings from this research would expose the effectiveness and efficiency of government expenditure, reawaken policy makers with respect to decisions regarding planning and execution of capital projects and funds released for spending from annual budget allocation on particularly government capital projects.

This study would be a building block for future researchers in the area of evaluation of government expenditures on transport infrastructure development which is a very important component in our social and economic development, helping to save lives and time, encouraging investors to travel to wherever their services would be needed most and overall helping to boost agricultural production through increased access to farm, market and health care centres in the case of emergencies. This research would also serve as a reference for future researchers in this area.


1.6 Scope of the study

This study evaluated the rural transportation and its environment. The study was therefore limited to Bida-Sacci-Nupeko-Pategi Federal Road.


1.7 Organization of Work

This study is structured into five chapters,

  • Chapter one dealt with the background to the study, statement of the research problem, objectives of the study and the significance of the study.
  • Chapter two reviews conceptual issues, theoretical and empirical issues while
  • Chapter three presents the methodology for the study.
  • Chapter four contains both presentation and analysis of the results.
  • The last chapter summarizes the study, draws conclusion and offers recommendations.

Chapter Five


Summary, Conclusion And Recommendations

5.1 Summary

The study evaluated the rural transportation and its environment. This is to check for prudence in the administration of funds meant for the purposes of construction and rehabilitation of federal highways. Input/output-outcomes relation was used to check for the efficiency and effectiveness of government budget and spending. The analysis of the government expenditure on roads rehabilitation and construction for the period 1999 to 2011 showed that overall, actual spending always fell short of the budget estimates. The pattern of under releases of fund is erratic at project levels, at geopolitical levels and nationally.

The physical road infrastructure which is the output shows a national increase from 194,394 km to 198,000 km. A case study of Bida-Sacci-Nupeko-Pategi federal road which had had allocations in the annual budget consistently from year 2000 to 2011 showed actual releases only in 2003 to 2008. With the aid of structured questionnaire administered on road users travelling on Bida-Sacci-Nupeko-Patigi road and a personal tour on the road to get a better insight of the present situation on the road, findings revealed that as at 2012, the road was in a very bad state and apparently the project has been abandoned.


5.2 Conclusion

Inefficiencies in government budget allocation and spending, therefore, affects efficiency in provision of physical road infrastructure as well as effectiveness of outcomes. The weakness in the budgetary process weakens the input-output and output-outcome relations. The erratic releases and under releases tend to increase project cost, reduce project quality and increase risk of project abandonment.


5.3 Recommendations

Given the very important place of road transportation in our everyday life, the state of road infrastructure needs to be kept in good condition. Budgetary allocations as well as actual spending on highway construction and rehabilitation need to be efficient and effective. The study recommends an improvement in the budget process; this could be done by specifying the spending plans for road infrastructure projects and budget discipline in fund releases. This study also recommends further studies in the area of evaluation of public spending on capital projects. The Federal Ministry of Works and all the stakeholders involved in road provision should ensure proper monitoring and evaluation of projects awarded yearly to ensure efficient and complete execution. This can be done through supervision of project sites by professionals in the field of road building at regular intervals until works are completed. This is to curtail the problem of spending without results. This would also check substandard use of materials.


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