Aisuebeogun at summit: Why Nigeria needs resilient transport system to survive external shocks

• Says conflicts driving up travel costs

Conflicts in major energy-producing regions and severe disruptions along critical global trade routes are escalating operating costs across Nigeria’s transport ecosystem, threatening service reliability and economic growth.

Dr Richard Aisuebeogun, a transport expert and former Managing Director of the Federal Airports Authority of Nigeria (FAAN), raised the alarm at the second edition of the Transport Summit, themed “Navigating Global Disruption and The Road Ahead.”

Aisuebeogun stated that geopolitical friction and supply chain bottlenecks have driven up the cost of fuel, marine and cargo insurance, shipping freight, and imported technical equipment.

For a country whose transport operators rely heavily on imported refined petroleum and technical inputs, these external shocks quickly erode domestic service delivery.

Highlighting the sector’s sensitivity, the former FAAN chief noted that aviation remains uniquely exposed because jet fuel dominates airline operating costs.

He recalled that by May 2026, rising aviation fuel prices and recurring supply shortages were already disrupting domestic flight schedules, forcing route adjustments, flight delays, and outright cancellations across Nigerian carriers.

He added that the report also highlighted critical concerns about flight crew fatigue and severe financial strain on airline operators.

“The central question is therefore not simply how Nigeria can build more transport infrastructure, but how the country can establish a transport system that is reliable, affordable, safe, integrated, financially sustainable, and resilient to global external shocks,” Aisuebeogun asserted.

Aisuebeogun further explained that local currency depreciation worsens the crisis by raising equipment replacement costs, inflating maintenance contracts, and hindering capital-intensive investments.

“This can result in reduced investment, delayed equipment replacement, higher fares, lower service frequency, and declining operational reliability,” he warned. “International supply chain interruptions can delay the delivery of vehicles, railway components, airport equipment, signalling systems, construction materials, and spare parts. Such delays lead to variation in project costs and extend the duration for which infrastructure remains incomplete.”

He added that while the global transport industry rapidly shifts toward digital ticketing, automated cargo processing, real-time tracking, and integrated logistics, Nigeria continues to struggle with foundational infrastructure gaps—particularly deteriorating road networks and inadequate intermodal connectivity.

Pointing to the road network as the primary backbone for passenger travel and freight distribution, he stressed that its current state directly impairs national productivity.

Key operational bottlenecks include degraded road surfaces, poor drainage, severe gridlock, unmaintained bridges, insufficient rural feeder roads, and weak connections linking agricultural and industrial hubs to seaports and airports.

Similarly, Nigeria’s railway network continues to face constraints regarding geographic coverage, infrastructure quality, freight capacity, security, and integration with major ports and commercial centres.

Earlier in her welcome address, the Convener of the Summit, Mrs Pearl Ngwama, reinforced how international volatility directly impacts Nigeria’s transport sector.

Citing data from the US Energy Information Administration (EIA) dated October 6, 2026, Ngwama noted that Brent crude oil averaged $114 per barrel in September, up $23 from August.

Prices briefly spiked to $131 per barrel on September 15 after targeted attacks on key energy infrastructure and major trade-route disruptions in Saudi Arabia.

“For the transport industry, the consequences are immediate,” Ngwama stated. “Airlines face mounting aviation fuel bills; shipping companies contend with higher vessel operating and insurance costs; road haulage operators experience increased fuel expenses; and businesses must absorb rising logistics costs.”

She noted that these compounding pressures ultimately translate into higher passenger fares, expensive consumer goods, and diminished competitiveness for local businesses.

“Nigeria cannot control global oil prices or determine the outcome of international conflicts,” Ngwama emphasised.

“However, we can strengthen our domestic transport infrastructure, improve operational efficiency, and develop policies that reduce the extent to which external shocks undermine our economy.”

Ngwama concluded on an optimistic note, highlighting Nigeria’s inherent advantages, including a vast domestic market, extensive maritime access, immense agricultural and industrial potential, and untapped opportunities across aviation, rail, road, and inland waterways.

Wole Shadare