Major developments in the Nigerian transportation sector in 2024 

From ambitious infrastructure projects and policy shifts to disruptions and controversies, the sector has been a focal point of national attention.

While some initiatives aimed at enhancing connectivity and operational efficiency made notable strides, challenges remained, testing the resilience of the country’s transport systems.

As the year comes to a close, these developments highlight the complexities of transforming Nigeria’s transportation infrastructure in a rapidly evolving economic and political climate.

Context: In February 2024, the Federal Executive Council (FEC), chaired by President Bola Tinubu, approved the construction of the Lagos-Port Harcourt-Calabar Coastal Superhighway. Messrs Hitech Construction Africa was entrusted with the project, to begin with the 47-kilometer Phase 1 in Lagos State.

The highway, spanning 700 kilometers across nine states, aims to enhance connectivity and economic growth along Nigeria’s coastline. The initial design includes 10 lanes, with dual rail lines running through the center of the main carriageways, and 11-inch-thick concrete roads reinforced with 20-millimeter steel.

Why it matters: This is the first large-scale project approved by FEC under President Tinubu’s administration. However, it sparked controversy as the Minister of Works had announced the contract award to Hitech five months before FEC’s official approval, raising concerns about the transparency of the procurement process.

Since the contract was awarded on an EPC+F model, where the contractor will provide most of the funding alongside federal government counterpart funding, the road will be tolled to recoup the investment.

Context: In February 2024, Governor Babajide Sanwo-Olu of Lagos State announced the procurement of additional rolling stock for the Blue Line and Red Line rail operations. These rolling stocks were projected to arrive from China before the end of 2024, following an agreement with the China Civil Engineering Construction Corporation (CCECC).

The announcement came weeks before President Bola Tinubu was set to commission the first phase of the Red Line, and months after the Blue Line Phase 1 began operations in September 2023.

Why it matters: Experts emphasize that the success of rail systems globally hinges on improved service efficiency, which is directly tied to the availability of trains. More rolling stock is crucial for increasing service frequency and meeting growing commuter demand.

Unfortunately, the trains did not arrive as expected by the end of 2024. The Lagos Metropolitan Area Transport Authority (LAMATA) in December announced that the trains are now projected to arrive in 2025.

Context: In February 2024, President Bola Tinubu commissioned the first phase of the Lagos Rail Mass Transit (LRMT) Red Line at Ikeja Train Station, 30 months after construction began in April 2021. The 27-kilometer Phase 1 of the 37-kilometer Red Line runs from Agbado in Ogun State to Oyingbo, with eight stations.

The event also marked the agreement for the second phase of the project, a collaboration between Lagos State, the Lagos Metropolitan Area Transport Authority (LAMATA), and the project’s contractor, CCECC.

The Red Line was designed to drastically cut travel time, with a 40-minute journey from Agbado to Oyingbo. Gov Sanwo-Olu disclosed that the project is funded by the Central Bank of Nigeria and local banks, with trains sourced from the United States of America, United Kingdom, and China.

Why it matters: The Lagos Red Line Phase 1 is the second rail line constructed by the Lagos State Government. It supports the state’s efforts to reduce private car trips, ease road congestion, and improve the efficiency of public transportation in the city.

Why it matters: The Lagos Red Line Phase 1 is the second rail line constructed by the Lagos State Government. It supports the state’s efforts to reduce private car trips, ease road congestion, and improve the efficiency of public transportation in the city.

Context: In March 2024, local airline Air Peace launched the Lagos-London route, breaking the monopoly previously held by foreign airlines.

The Minister of Aviation and Aerospace Development, Festus Keyamo, was on the maiden flight from Murtala Muhammed International Airport (MMIA) to Gatwick Airport. He highlighted that the success of Air Peace on this route was part of the federal government’s efforts to support local airlines while ensuring they meet the highest international standards in the aviation industry.

At the launch, Air Peace pegged economy class tickets at N1.2 million and business class at N4 million, offering a contrast to the higher prices charged by foreign airlines, which had previously set economy tickets at N2.3 million and business class at N6 million.

Why it matters: The introduction of Air Peace on the Lagos-London route offers Nigerian travelers a significant price reduction, with tickets now more affordable compared to the fares charged by foreign carriers. This move not only provides cost savings but also promotes competition, which could lead to further price reductions and improved services in the Nigerian aviation sector.Q2 2024

Q2 2024 

Context: In April 2024, Allen Onyema, CEO of Air Peace, disclosed that foreign airlines on the Nigeria-UK route sharply reduced their fares after Air Peace entered with lower prices. Before Air Peace’s arrival, foreign carriers charged up to N17 million for business class and N5 million for economy, citing the exchange rate.

However, after Air Peace introduced fares as low as N1.2 million for economy and N4.5 million for business class, foreign airlines swiftly reduced their prices, despite no significant shift in the exchange rate. Onyema suggested that this price-cutting strategy was a deliberate attempt to force Air Peace out of the market.

Why it matters: Passengers benefited from lower fares, as foreign airlines reduced their prices in response to Air Peace’s entry. However, experts raised concerns that foreign carriers lowering fares below break-even points to oust a local competitor was a questionable business practice. Such tactics could harm long-term competition, limiting options for passengers in the future.

Context: In April 2024, Allen Onyema, CEO of Air Peace, revealed in an interview with Channels TV that Gatwick Airport had been intentionally obstructing the airline’s operations since it launched direct flights from Lagos to London in March 2024.

Onyema highlighted several issues, including difficulties with ground handling and inadequate space allocation at the airport. He recounted incidents such as Air Peace being assigned to a terminal with a malfunctioning baggage carousel and a collapsed boarding gate.

The Air Peace CEO also shared how flights, despite completing boarding on time, were delayed due to the airport’s failure to provide ground handlers promptly. He speculated that these disruptions were part of a strategy to force Air Peace out of Gatwick under the 80/20 slot rule, which requires airlines to maintain a high on-time departure rate to retain their slots.

Why it matters: The allegations against Gatwick Airport raise concerns about local airlines’ challenges when expanding operations abroad. Such actions could undermine competition and disrupt the growth of international routes for local carriers. However, Onyema has not made similar claims since then.

In April 2024, the management of Landmark Beach Resort, led by CEO Paul Onwuanibe, initiated negotiations with federal and state governments to reroute the first 1.5 km of the Lagos-Calabar Coastal Highway.

The proposed route diverted the highway along the undeveloped median of Water Corporation Road to prevent disruptions to the resort’s operations. This followed a demolition notice from the Lagos State Government, which targeted the resort as part of the highway’s right of way.

While the Lagos-Calabar Coastal Highway promises significant benefits, this story highlights how large-scale projects can disrupt businesses like Landmark Beach Resort, a multibillion-dollar enterprise providing employment. Some argue that such infrastructure projects serve the greater good, even if they damage businesses.

However, others contend that businesses contributing to local economies and employment should be considered in the planning process. This tension reflects the challenges of balancing national development with protecting livelihoods, making it a key moment in Nigeria’s transportation sector in 2024.

Context: In April 2024, Atiku Abubakar criticized the Federal Executive Council’s approval of the Lagos-Calabar Coastal Highway construction contract, awarded to Hitech Construction Africa. Atiku questioned the project’s transparency, highlighting the lack of competitive bidding.

He pointed out discrepancies in the statements made by Works Minister Dave Umahi, who initially claimed the project would require no public funding but later requested N1.06 trillion for its first phase. Atiku also raised concerns about potential conflicts of interest, alleging that the project disproportionately benefited President Bola Tinubu and Hitech’s Chagoury Group.

Why it matters: Atiku’s concerns highlight the importance of transparency and fairness in the procurement process for major public infrastructure projects. His criticisms, echoed by figures like Funso Doherty, draw attention to the risks of opaque decision-making and its potential impact on businesses, local communities, and the broader economy.

The controversy surrounding the Lagos-Calabar Coastal Highway emphasizes the need for competitive bidding and accountability in public projects to prevent conflicts of interest and protect stakeholders’ interests.

Context: In April 2024, Minister of Works Dave Umahi explained the redesign of the Lagos-Calabar Coastal Highway’s route. The original plan included Water Corporation Road, but the route was shifted to the coastal path to avoid demolishing the infrastructure along the initial route, which impacted establishments like Landmark Beach Resort.

Umahi emphasized that this reroute was necessary to preserve valuable infrastructure and avoid widespread destruction. He also noted that the Federal Government holds the irrevocable right of way for the project, ensuring its progress while mitigating the destruction of existing structures.

Why it matters: The rerouting of the Lagos-Calabar Coastal Highway highlights the challenges of balancing large-scale infrastructure projects with the preservation of existing businesses and infrastructure. While the new alignment protects valuable assets, it also disrupts establishments like Landmark Beach Resort.

This shift emphasizes the importance of thoughtful planning and consultation in major projects to minimize adverse effects on businesses while still achieving the broader benefits of national development.