Amaechi Bemoans Damaging Effects of COVID-19 on Transport Sector

Mary Nnah

The Minister of Transportation, Rotimi Amaechi has said the outbreak of the COVID-19 pandemic stalled a lot of activities and crumbled several economies globally, stressing that the transportation sector in particular, was one of the worst hit as the sector was the greatest vector of the disease.

He said in a bid to curb the spread of the virus, the transportation sector became straddled with restrictive safety measures aimed to preserve lives and properties, adding however, that Nigeria is gradually weathering the storm and would totally overcome this deadly pandemic with the aggressive approach of the Presidential Task Force on COVID-19 and the doggedness of the health workers.

Speaking during the public presentation of the 2019/2020 edition of the “Nigerian Logistics and Supply Chain Industry Report” during the 9th the African Centre for Supply Chain (ACSC) Fellowship Investiture and Induction ceremony, held in Lagos recently, Amaechi who was represented by the Director, Transport Planning and Coordination, Federal Ministry of Transportation, Dr. (Mrs.) Mercy Ilori, stressed that though Nigeria is gradually winning the war against the deadly virus, its impact on the economy, particularly the transportation sector have been damaging.

“The road sub-sector which is considered as the most prevalent and extensively used mode of transportation in Nigeria encountered massive loss of workforce as some transport companies reduced their staff strength to ameliorate the effect of the pandemic on operational cost.

“The negative toll of the sharp reduction in the global demand for crude oil further shrunk the economy and led to a hike in the cost of living”, the minister noted.

Amaechi lamented further that the rail sub-sector was not left out in the scourge as it led to compulsory reduction of passengers on the train which led to loss of revenue for the government while in the maritime subsector, the application and implementation of various restrictions imposed by national and sub-sovereign authorities negatively affected shipping and port operations activities, as it became very challenging for stakeholders in the shipping industry to fulfil their contractual obligations.

The minister noted that as the impact of COVID-19 spirals across the Nigerian economy while the supply chain industry has also faced some associated challenges, adding that one of such challenge was the inability of manufacturers of finished goods to source for raw materials from international suppliers thus disrupting the wholesale, retail and distribution operations chain and resulting in the reduction of volume of goods distributed across the value chain and increased inflation rate.

He said therefore that the theme of this event, “Impact of COVID-19 on Transportation System in Nigeria”, reflected the practical experiences transport operators are encountering at this peculiar time in human history.

Speaking at the event also, the Director General, ACSC Council, Obiora Madu,said there was a need for collaborations amongst all stakeholders.

“Any company that refuses to collaborate will die. For instance, you run a fertilizer company and transport fertilizers to the North and the truck returns empty. Collaboration means going to a company in the north and they have something to send down to Lagos, the company can collaborate with another company here in Lagos and they can both share the profits. We just have to get strategic, that is the only way”, Madu noted.

The ACSC Director General who said the centre would be seeking development partners everywhere possible, noted further that the government needs to help too, adding, “the minister is showing interest but we also need to be talking about infrastructures.

“We cannot get anywhere without infrastructures. Planes come into Nigeria with cargo and get out of Nigeria without cargo. Same thing with ships, yet Nigeria is blessed. Private-public participation is key. Transport is only one component of the supply chain. We have talents in this country.”