Lagos State is opening up its waterways for transport services and investors are invited to be a part of this exciting project. Jaco Maritz reports

Extreme congestion on Lagos’ highways has for long been a major frustration to everyone moving around the city. The average number of vehicles per kilometer on Nigeria’s roads is 11, so Lagos, with a figure of 224, really is in a different league when it comes to traffic problems. Massive investment in upgrading and building new highways and ring-roads is underway, which should ease movement around the mega-city considerably. However, the most important plans will divert commuters away from private vehicles and mini-bus taxis. Besides a proposed light rail system, the Lagos State Government has identified a water ferry system as one of the ways to ease congestion.

"Transport infrastructure is very important because of its role in the overall development of the state," says Prof. Bamidele Badejo, Lagos State Commissioner for Transportation. "In Lagos State over 98% of movement is done by road, and cities of this size cannot survive on one mode of transportation."

‘Serious investment opportunities’

The present administration is working assiduously for the development of a ferry system. Dredging and channelisation of the Ikorodu Waterfront and the Lagos Lagoon has begun and three routes have already been identified to start the service. Further studies have already been conducted on another four possible routes.

"Water transportation provides serious opportunities for investment," says Badejo. "For example there are over 60 jetties that need to be developed and we are currently working on about only six which means there are a lot of openings for investors in ferry operations. There is a need to develop more terminals and jetties. Dredging also presents many opportunities and when dredging is done, the soil can be sold to the construction industry.

"After the terminals and jetties have been developed and the right of way is available, the challenge swifts to bringing in operators. Government is encouraging public private partnerships in the operation of water transportation. Some operators have already been contacted and before the year is out, water transportation will contribute to the mobility needs of the people of Lagos State."

Investors in the ferry services need not worry where their customers will come from. As the economic hub of Nigeria it is estimated that there are over six-million daily commuters in Lagos State. A ready market therefore exists. Around 70% of the state is also accessible by water.

Changing attitudes towards investing in Nigeria

According to the transport chief the reason for non-investment in water transportation is not because the Lagos State Government has not seen it as an area to be developed, but because during the last administration the Lagos State fund was located at federal level.

"This money could have been used to create a suitable environment for investment, but now we have a very friendly administrator who is ready to encourage investment in the country, the level of sincerity is high and the enabling environment for investors is guaranteed," says Badejo.

"During the military administration, the Western democracies were not ready to invest. Now all these issues are gradually being eroded and more friendly relationships are being explored. Investors have noticed these things and that is why they are coming in."