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Transport across Nigeria’s Lagos-Kano-Jibiya Corridor is found high in cost and time

As part of USAID’s Nigeria Expanded Trade and Transport (NEXTT) project, CARANA and its implementing partners recently conducted a corridor performance review focusing on the time and cost to import and export goods along the Lagos–Kano–Jibiya (LAKAJI) Corridor. Investigation for this Corridor Baseline Assessment Report was conducted by a core team of five researchers who traveled the length of the LAKAJI Corridor in a series of visits between February and April of 2013. The team collected data in the eight major corridor states (Kaduna, Kano, Katsina, Kwara, Lagos, Niger, Ogun, and Oyo) by interviewing over one hundred representatives of shipping companies, freight forwarders, transportation companies, truckers, train operators, dry port operators, rail operators, and numerous state and federal government representatives.    

The time and cost of transport along the Lagos-Kano-Jibiya Corridor in Nigeria is higher than similar corridors both within and outside the region.The time and cost of transport along the Lagos-Kano-Jibiya Corridor in Nigeria is higher than similar corridors both within and outside the region.

CARANA’s report showed that the time and cost observed for both imports and exports in Nigeria compare unfavorably to corridors of similar length elsewhere in West Africa and in North America. Costs are nearly 25% higher for exports via the LAKAJI corridor as compared to the Ougadougou–Tema corridor and almost 100% higher than the Chicago–Newark corridor. While the LAKAJI corridor is only about 10–15% longer in distance, the time required is over 150% greater than for exporters using the Ouagadougou–Tema corridor and 300% greater as compared to Chicago–Newark. Given that exporters using the Ouagadougou–Tema corridor are required to cross an international border whereas LAKAJI is purely a domestic corridor, the difference in time required is significant.  

The CARANA team found that the main drivers of the inflated time and cost of transport along the LAKAJI corridor were delays and inefficiencies, not informal payments. Approximately 60% of the time required to import and export goods via the LAKAJI corridor is attributable to delays, while almost 50% of the cost to import and 40% of the cost to export is attributable to inefficiencies. As an example, for imports, a staggering 15 out of 19.5 transport days are due to delays in the port and the short transport segment to Lagos warehouses. The report found that the LAKAJI corridor had a higher total of bribes per 100KM relative to other West African corridors analyzed by CARANA, but these informal payments accounted for less than 5% of the total cost to import or export.   

The average number of controls and bribes found on the LAKAJI corridor is higher when compared with other corridors.The average number of controls and bribes found on the LAKAJI corridor is higher when compared with other corridors.

To address the delays and inefficiencies driving the time and cost of transport upward, the report lays out a series of recommendations. Some of the highlights include implementing a single window system and/or an electronic dashboard in customs, increasing the use of multimodal transport, and improving trucking safety standards and enforcement. The report also strongly suggests extending rail lines into port terminals in order to decrease the cost of transloading and cargo escort.

Read the key findings and recommendations of the Corridor Baseline Assessment Report here and review the assessment presentation here.

Published June 2013