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The Economic Consequences of Informality in the Transport Sector
By Timi Olubiyi, PhD
The new year is here, it is my prayer that 2022 will be a profitable year for all individuals, businesses, and households. Our new year resolutions at every level must include enhancing productivity and improving performance.
Without a doubt, transportation is central to this and can be an effective indicator of performance in any economy, business, and quality of life. Simple things like getting to work, school, meetings, appointments, trade facilitation, transacting, moving cargoes, travels, and even delivery of social services such as rescues during emergencies can become extremely difficult with poor transportation.
In fact, business decision-making and access to everything for economic progress hinge strongly on effective transportation I must say.
Certainly, every nation regardless of its population size, level of development, and industrial capacity can benefit from an efficient transportation network be it road, waterways, rail, or air transport. But on the contrary transport poverty exist where inefficiency in all transportation modes is prevalent within an economy. Such is the case in many African countries and cities, including, Benin, Ethiopia, Nigeria, Uganda, Tanzania and Lusaka, Zambia, and a host of others.
In many of the developed countries, transportation plays a significant role in the ease of doing business and the government plays an integral role in the implementation and administration. A recent visit to the United Kingdom (UK) and the United Arab Emirates (UAE) strongly indicated that, where there is efficient transportation and fewer traffic congestions, the economy and businesses are positively impacted.
From my observation in the two countries, public transportation which includes buses, taxis, water ferries, trains, trams, and the metros are regulated adequately by the government and it is not completely private-sector driven, making it so efficient and reliable. Apparently as noted, where private companies are involved in the operations, it is usually on an agreed model such as the Public-Private Partnership (PPP) model.
Ironically, across many African cities particularly in my country Nigeria, the unreliability of the transport system has continued to limit access to services, business, trade facilitation, the attraction of foreign direct investments, and also in the revenue drive of the government.
The pilot region of observation is Lagos State the economic centre of Nigeria, where transport operation is largely run informally by private individuals. This makes the services undesirable because of the inefficiencies that exist due to under-regulations.
For instance, car reliance keeps compounding in the State because of poor demand responsiveness of public transports, commuters then tend to avoid the long queues and waiting hours at bus stops, and the associated risk of using public minibuses called Danfo. But the result is usually wastage of productive hours by many commuters in traffic congestions.
Sometimes, bike taxis which are usually referred to as Okada are considered for mobility. Though this trend depicts transport poverty, it is largely heightened by the informality of the public transport sector, widespread unemployment, lack of worthiness of the available transportations, lack of adequate maintenance system, giving rise to the high traffic congestion on the roads and expensive transport fares.
Basically, the over-reliance on one mode- road transport and over-exposure to informality are the issues that are mainly slowing down growths in the sector. As widely noted, private participation, with little or no government entry barrier promotes informality. Such as the operations of the non-conventional ferry on the waterways, motorized tricycles, and the Okadas and Danfos within the hinterlands. Sadly, these are the only affordable services to the poor despite the widespread insecurity and risks.
In the UK particularly in London, a mobile application (app) offers most of the information about the public transport system, and regulations in the city including fares, routes, and time of arrivals and departures. That means if you must operate government has to know, this procedure reduces informality. In both UK and UAE, the logistics and business supply chains are effective because they rely on the transportation infrastructures and strict regulations available and that reduces the cost of business operations.
For most public transportation closed-circuit television (CCTV) is installed for safety and security businesses. Transport cards are also used on most of these public transports for ease of payment, this offers a hassle-free environment for the populace, visitors, and tourists. Strict regulations also avail the government the opportunity to monitor many of these services, ensure accountability on the part of the operators, and for government to monitor service trends.
For instance, in UAE just in a year, there were around 600 million rides on public transport (in a city of 3 million population). This is an indication of the rate of conversion to the public system by visitors and residents in a region that used to be primarily private vehicle driven.
This is an indication that individuals move with ease and travel on public transportation because they are timely, affordable, and adequately available. With such a system in place, businesses can make projections and enjoy a reliable supply chain, with no uncontrollable logistic issues. With this experience, I have a strong conviction that there is a direct relationship, between the development of the transport system and the ease of doing business in any country.
In fact, without a doubt, it is easy to conclude that transportation can be a useful criterion for measuring development in a country. Because if transportation is made efficient it must impact positively on the economic development of a country and also improve the performance of the businesses in that country. It is no brainer or magic such a system can happen in Nigeria, with improved regulation, reduction of informality with sufficient investments in the sector.
Even though in Nigeria it has been a situation of hectic traffic congestion even at the ports, poorly maintained roads, overstressed railways, underutilization of the waterways, long hours of waiting to have access, inadequate infrastructure, there should be a concerted effort to raise the percentage of public transportation, expand the modes, and offer stricter regulatory regime.
For safety and security reasons, the ease of entry into the sector by informal transport operators needs to be reviewed because it appears that is majorly the issue. Government entry barriers are obstacles that can make it difficult for an individual or business to operate in the sector, such as what is available in the aviation industry.
It is important to improve policies and regulations in transport services, expand transportation networks to achieve large-scale economic growth, and modernization. Though it can be argued, effective transportation can alleviate the level of poverty in the country. Because the current chaotic congestions on the roads and in the ports are essentially aiding market failures and hindering the ease of doing business in the country which are enablers of business closures and impoverishment.
Hence, when transportation is effective and efficient, businesses will be able to make adequate projections, improve production, produce faster, reach consumers faster, attend business meetings promptly and all these stimulate the economy, create jobs, and can reduce poverty.
Truthfully, the transportation sector can offer the needed diversification of the revenue generation drive of the government. I am aware that the current public debt of the country is around N38 trillion, according to figures released by the Debt Management Office (DMO) and this is mainly due to revenue challenges. In my opinion, an effectively regulated and efficient transportation system can be revenue-yielding for the government.
In conclusion, it is also important to note that an improved transportation mode- air, rail, water networks and the expansion of road networks can increase economic productivity, cut the cost of production, and enhance the ease of doing business in the country. For thinkers, the issues mentioned above can adequately present mind-blowing opportunities, particularly for investors and businesses. To this end, businesses and individuals can have better mobility, access and livelihood. Good luck!
How may you obtain advice or further information on the article?
Dr Timi Olubiyi, an Entrepreneurship & Business Management expert with a PhD in Business Administration from Babcock University Nigeria, is a prolific investment coach, seasoned scholar, Chartered Member of the Chartered Institute for Securities & Investment (CISI), and Securities & Exchange Commission (SEC) registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: [email protected], for any questions, reactions, and comments.
Car lovers and their cars maintain a relationship which, for some reason, has a certain magic about it. Whether it is a vintage muscle car, a sleek modern sports vehicle, or an off-roader with guts, true car fans consider their vehicles extensions of their personalities. This passionate bond is worth celebration, and customized keychains become a medium to give the celebration to it.
In recent years, personalized miniature car key chains have gained ever-increasing popularity among auto enthusiasts as an expression of their automotive passion. However, these small accouterments are far more than mere key holders. They become permanent reminders of the days the owner’s vehicles brought so much bliss into his or her life.
Metal Personalized Keychains: Durability Meets Style
Metal personalized keychains are an attractive, durable yet sophisticated item that provides car enthusiasts fond of precision engineering and fine design. They reflect the strength and toughness of their owner’s vehicle, making them especially suitable for car lovers.
Custom stainless steel keychains are most likely the best in demand because they do not rust and corrode. They have all the practical advantages of being constant traveling companions for car keys given the exposure to outside weather conditions. However, stainless steel keychains can withstand everything and can be engraved with a laser to a very high degree of accuracy, from a contour silhouette of the vehicles to specifications of the engines
Carbon Fiber: Ultra-Modern Appeal
Personalized Keychains Are Made of Carbon Fiber. Within the bright lights of high-performance and luxury automotive enthusiasts, this modern material has gained exorbitantly great popularity among all. The fabric’s distinct weave pattern and lightweight strength are the closest indicators of technology found in ultramodern automobiles.
What really makes carbon fiber personalized keychains shine is their authenticity in linking to the performance cars themselves. Many parts of supercars and racing cars have carbon fibers in them, thus creating a thematic relationship between the keychain and the cars it celebrates. When you personalize the keychain with a name, initials or specific vehicle model, it becomes an elegant testament to automotive engineering greatness.
Custom-Cut Vehicle Silhouettes
Personalized keychains in metal designs like custom cut vehicle silhouettes are some of the most popular ones. These are the keychains that have been cut to the precise outline of certain car models to make profiles easily recognizable, thus speaking volumes on automotive passion.
Personalized silhouette keychains are not just limited to the vehicle model. Many manufacturers offer additional personalization options like text, date or special finishing touches. For instance, a Mustang enthusiast might keep a stainless steel silhouette of that particular generation Mustang with their name and the year of purchase when acquisition of that prized vehicle happened. Another example would be that of the Jeep owner; an owner of a Wrangler might go for a rough, kind of brushed-finish silhouette of the vehicle with personalized text that encompasses all the great memories behind the wheel off-road.
Leather Personalized Keychains: Craftsmanship and Tradition
Leather personalized keychains bring a timeless appeal to a car enthusiast who loves heritage and craftsmanship, which remains very much with the car tradition. The warmth and tactility of leather do not seem very much at home with cold metal keys, and they complement those interiors of classic cars as well.
Full-grain leather keychains, just like a beloved well-used leather car interior, acquire a characteristic patina over time. Add to this transformation of character and history from being personalized per year, making keychains even more intimate. Customization options usually include embossing or engraving names, initials, meaningful dates, or even coordinates of favorite driving roads.
Braided Leather with Metal Accents
We all know that enthusiastic owners of European luxury cars love key chains made of braided leather and some metal parts in them. These accessories are as elegant as the interior detailing of the most expensive cars.
Racing-Inspired Designs
Motorsport heritage inspires racing-themed leather personalized keychains, appealing to automotive competition devotees. These almost unique accessories boast both design and construction elements reminiscent of racing lore: perforated leather patterns suggest cloth driving gloves; striping recalls racing liveries; the stitching recalls that of competition bucket seats.
Customization choices for these racing-inspired keychains often involve personal racing numbers, names of tracks, or special lap times that bring back fond memories. Some manufacturers bring in leather colors associated with iconic racing teams, allowing enthusiasts to relate their keychains to a specific motorsport tradition.
Tech-Integrated Personalized Keychains for Modern Car Enthusiasts
It is not just gadgets that keep pace with automotive technology; accessories that complement car culture evolve too. Nowadays, tech-savvy enthusiasts keep turning to personalized keychains with integrated functional digital components embracing customary customization.
Personalized keychains become common with Bluetooth tracking technology, providing an avenue for locating your keys and, by extension, your vehicle, when paired with smartphone applications. These practical devices are customizable with names or contact information or personal messages, blending everyday usage with a personal touch. Such trackers come in handy when someone collects many vehicles to effortlessly organize different sets of keys.
Digital Photo Frame Keychains
For those who want to carry visual memories of their beloved vehicles, digital photo frame personalized keychains offer a compact solution. These small accessories feature tiny screens capable of displaying digital images, allowing enthusiasts to showcase their cars from multiple angles or in different settings.
Customization extends beyond the digital display, with options for engraved cases and personalized external designs. Some models even alternate between showing the vehicle and showing personalized text, such as the owner’s name or a favorite automotive quote. Sometimes, these personalized keychains require recharging, but they bring the experience of having a beloved vehicle alive in moving form and give enthusiasts a complete visual record of that beloved.
Engine Part Keychains: Authentic Automotive Connection
These dedicated types of keychains made from engine components provide an unparalleled connection to automotive engineering for the passionate car enthusiast. These very special accessories convert genuine vehicle parts into everyday items, thus establishing a visceral connection to the mechanical heart of a cherished car.
Piston keychains are among the most widespread in this category. Typically constructed of parts of decommissioned engines, heavy key chains might engrave details regarding the specific engine from which they come, the owner’s name, or even a message of their choice. Some specialty manufacturers even produce miniatures of famous engine pistons to allow aficionados to pay homage to iconic power plants like the Porsche flat-six or Ferrari’s V12 designs.
Gearshift-Inspired Designs
Inspired by manual transmissions, these shift-pattern personalized keychains are for those autophiles who love the caressing experience of engaging the gears manually while driving. Usually, these one-of-a-kind accessories model the H-pattern known to all who love driving a stick shift.
Customization options for these keychains include engraving the gear pattern of specific vehicles, adding personal messages about driving passion, or incorporating the name and production year of a cherished manual-transmission car. Some craftspeople create versions using the same materials found in premium shift knobs, including aluminum, polished wood, or carbon fiber.
Tire Tread and Brake Disc Designs
The distinctive patterns of tire treads and the precision engineering of brake systems have inspired another popular category of personalized keychains for car enthusiasts. These designs celebrate the critical components that connect vehicles to the road and enable the control that drivers cherish.
Conclusion
Sure enough, there’s that sweet factor of being practical and also fostering your passion for a cool car, all in a tiny little item: a keychain that cultivates and keeps reminding you of the good, warm feelings that accompany your car and experience in it. From super precision-engineered metal designs and highly customized handcrafted leather to high-tech digital options or truly authentic engine parts, today’s markets seal the deal by offering a range of the most incredible options to literally carry automotive enthusiasm in hand.
By Adedapo Adesanya
The Lagos State Government has suspended enforcement of its electronic call-up system for truck movement on the Lekki-Epe corridor after it commenced on Saturday, March 1, 2025.
The Permanent Secretary of the Lagos State Ministry of Transportation, Mr Olawale Musa, confirmed this development in a statement on Tuesday.
He said the policy was stopped after a meeting comprising representatives of the ministry and leaders of transport unions, including the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Independent Petroleum Marketers Association of Nigeria (IPMAN), Nigerian Association of Road Transport Owners (NARTO), and Petroleum Tanker Drivers (PTD), a branch of NUPENG.
“Rising from the meeting which was held at the conference room of the Ministry of Transportation, Lagos State, the ministry yielded to the request of the union leaders to suspend enforcement of the e-call-up system to allow them further engagement with members of their unions.
“The unions promised to ensure parking compliance by their members while the engagement is ongoing,” the permanent secretary stated.
He added that the union leaders and representatives of the ministry agreed that the ministry would carry out enforcement in the event of violation of the agreement.
“All parties agreed with the importance of the e-call up system as the best solution for managing truck movement along Lekki-Epe corridor,” he said.
According to him, the meeting was also attended by the state Commissioner for Transportation, Mr Oluwaseun Osiyemi.
The technology-driven e-call-up system is meant to ensure seamless traffic flow on the corridor.
It was introduced in view of large vehicular traffic being generated by trucks accessing the Lekki Deep Seaport, Lekki Free Zone, Dangote Petroleum Refinery and some other industries within the axis.
However, it faced drawback from stakeholders who lamented that it was too difficult to operationalise and that there wasn’t enough engagement before the implementation of the policy.
By Adedapo Adesanya
A top financial institution in Nigeria, Stanbic IBTC Bank, has partnered with Autochek, an automotive technology firm, to facilitate accessible and affordable car ownership in Nigeria.
This vehicle-financing collaboration combines Stanbic IBTC Bank’s extensive financial expertise and network with Autochek’s cutting-edge technology platform and robust dealer distribution network; streamlining the car-buying process and making it more accessible and affordable for Nigerians.
The car financing programme offered through this strategic alliance provides several key advantages for customers including competitive interest rates that enhance affordability, as well as flexible repayment plans.
Within six months, the collaboration has disbursed over N4 billion in loans since its inception in August 2024 furthering empowering numerous individuals to purchase their desired vehicles.
According to the company, there are approximately N1 billion in deals that are currently being processed.
The partnership is poised for continued growth and impact on the Nigerian automotive landscape, according to Mr Olu Delano, Executive Director, Personal and Private Banking at Stanbic IBTC Bank.
He made this known while speaking at the media parley held in Lagos to engage stakeholders in the industry.
“We are incredibly excited about the tangible impact of our collaboration with Autochek. This partnership has significantly lowered the barriers to car ownership; making it a reality for many Nigerians. At Stanbic IBTC Bank, we are dedicated to providing innovative financial solutions that cater to the evolving needs of our customers.
“We are committed to the long-term success of this partnership and its contribution to the growth and development of Nigeria’s automotive industry,” he added.
On her part, Ms Mayokun Fadeyibi, Chief Operating Officer at Autochek, highlighted the transformative nature of the partnership.
“Our collaboration with Stanbic IBTC Bank has revolutionised the car-buying experience in Nigeria. By leveraging technology and strategic partnerships, we have made car ownership more accessible, convenient, and transparent.
“We share Stanbic IBTC Bank’s commitment to driving growth in the automotive sector and look forward to expanding the reach and impact of this partnership.”
The partnership comes with a swift and efficient application process, that will allow customers to enjoy a smooth and convenient experience.
Also, Autochek’s platform and extensive dealer distribution network give customers access to various vehicles, ensuring they can find the perfect car to meet their needs.
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