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Fixing Nigeria’s transportation to maximize impact on economy (2)

by NWACHUKWU
October 22, 2025
in Comments
Incentivising private sector investors for CNG distribution

The movement of goods and services is part of the basic operational functions in business transactions, which is common in the process of executing daily economic and commercial activities. These economic and commercial activities obviously involve physical movements and relocation of materials of worth, with attached economic value, from one point (source) to another point (destination), in exchange for money that is generally recognised as the economic benefit in a business transaction between concerned parties.

The transportation aspect of the services rendered is known as the means and process of physically moving materials and man from one point to another desired location where the deal is consummated (market). This makes the transportation system an essence in all businesses, be they local, transnational or for international businesses. Without proper planning and adequate arrangements for transportation of goods and services, the engaged economic activities may end up as a failed business and, therefore, record losses. Such losses could result from high costs of goods caused by inflated costs of transportation services as a result of poorly planned transportation systems; due to lack of critical application of quantitative methods in analyzing modes of effective and efficient transportation services, as required.
To effectively fix the nation’s transportation, for purposes of achieving maximum impact in the economy, therefore, the concept of transportation modelling (i.e. an optimal way to achieve attractive cost of moving goods and services with minimum resources in real life situations), should be adopted by the government. This should significantly be applied in principle, based on policies expected to be made by the economic and national planning organs of the government. This is vital in our national life because road transportation alone can definitely not help the economy much. This is because of the existing culture of poor maintenance of road networks, virtually in all geopolitical zones of the country (using the Ogoja to Obudu stretch in Cross River State as an example). The mentioned stretch is not just a mere feeder road for agricultural purposes alone but a strategic federal road that leads to a renowned tourism centre (Obudu ranch/resort, a very attractive cash cow project) in the country. In a scenario where transportation modelling is deployed, then an alternative means of haulage of goods should also be considered; hence, a transportation portfolio that considers roads, railways, waterways and airports, for instance. This methodology selects the optimal means to achieve the desired economic goal with minimum resources applied at the specific point in time.


It is, therefore, expected that Nigeria should have, at this age and time, evolved to a point of applying transportation modelling in the haulage of goods and services to all locations in the country, with the advantage of applying the knowledge of available technological advancements to our practical needs. This application should be carried out without the discriminative tendencies that often results from political affiliations, religious bigotry, ethnic and tribal segregation. This should be in accordance with how it suits all locations in the six geopolitical zones, for the purposes of growing economically; and optimally cutting down unnecessary losses that result from applying the wrong transportation modelling in the nation’s transportation system portfolio.


Transportation, no doubt, is one strong sector that can influence the tide of economic growth, once the genuine steps and principles of transportation modelling in quantitative techniques (operations research) are substantially invoked by the government in its policy articulations, to impact the entire economy through the country’s transportation system. Rail system ought to reduce the heavy stress federal roads are subjected to on a daily basis, in the haulage of heavy duty consignments to and from different parts of the country, in the course of performing functions of unending commercial activities in the nation’s domestic business operations.


One aspect that might be difficult to reform is private sector involvement in the combination of interstate haulage of goods (heavy duty consignments), alongside commuters, as mere carryon luggage in the same vehicle. There needs to be policy guidelines spelt out by the government, on certain kinds of goods or particular weight limits for goods that could be transported by roads (haulage by waybills, and or by rail transportation). Such a government policy will help reduce carnage on the poorly maintained and managed federal highways, and the unnecessary accidents on these highways in all nooks and crannies of the country. Such policy guidelines would also reduce haulage costs in a well planned transportation system, and shall, indirectly, improve general security in the country.


Proper and effective national planning and economic development ought to be one aspect of governance that should substantially ease the socioeconomic sufferings of the citizens, but they have rather remained an ignored critical aspect for good governance. All the 774 local government councils of the federation should, from the onset, be tasked by the centre (Abuja), to substantially be involved in road maintenance; while the federal government and states, keep improving on the provision of the other transportation alternatives (rail and water transportations) in every locality to effectively fix the nation’s economy through transportation.

NWACHUKWU
NWACHUKWU
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Onafriq, a pan-African payments company, is set to discontinue its Baxi agent banking business in Nigeria after five years, citing naira depreciation, rising operating costs and intensifying competition that have weakened the segment’s profitability. The planned shutdown will affect the agent banking operations conducted through Baxi under Onafriq Nigeria Payments Limited. However, the decision does not signal the company’s withdrawal from Nigeria, as it intends to retain its cross-border payments network and card issuing services in the country. In a statement, Onafriq said changes in Nigeria’s operating environment since 2024 had significantly altered the economics of its offline agent banking business, making the existing model unsustainable. The move marks a strategic shift for the company, which entered Nigeria’s agent banking market to expand access to financial services through a network of agents providing transaction services outside traditional bank branches. Onafriq attributed the decision to a combination of macroeconomic pressures and structural changes in the country’s payments industry. According to the company, naira depreciation and inflation have affected transaction volumes, increased operating expenses and undermined the sustainability of its agent banking operations. The growing adoption of instant account-to-account transfers has also changed the mix of transactions handled by agents, while heightened competition among payment service providers has put further pressure on margins. These developments have made it increasingly difficult for the business to remain viable under its existing operating structure, prompting the company to reassess its long-term strategy. Dare Okoudjou, founder and chief executive officer of Onafriq, said the decision to close the business was difficult, particularly given the efforts of employees, agents and business partners who helped build the Baxi network. “We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for. Closing this business was a difficult decision to arrive at, one that affects colleagues, agents, and business partners across Nigeria who poured their hearts and soul into building out the Baxi network,” Okoudjou said. Despite the closure, he reaffirmed the company’s commitment to the Nigerian market, noting that the group would continue to serve customers through its payments network and card issuing operations. Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited. The company said it continued investing in the business through 2023, with efforts focused on expanding and strengthening its agent network. However, a subsequent review of the business’s long-term prospects and financial sustainability led to the decision to wind down the operation. As part of the transition, Onafriq said agents onboarded through the Baxi platform had been moved to another principal bank, a step intended to facilitate continuity for the affected agents. The company has also directed agents to transfer their funds to their preferred principal bank within 30 days, adding that its teams would provide support throughout the transition process. Employees whose roles are linked to the agent banking business will also be consulted and supported during the wind-down, with Onafriq pledging to treat affected workers fairly.

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