THE IMPACT OF ROAD CONGESTION ON ECONOMIC PRODUCTIVITY IN NIGERIA (A CASE STUDY OF APAPA, LAGOS)

Table of Contents

ABSTRACT.. 2

CHAPTER ONE.. 5

INTRODUCTION.. 5

1.1 Background to the Study.. 5

1.2 Statement of the Problem... 6

1.3 Objectives of the Study.. 7

1.4 Research Questions. 7

1.5 Research Hypothesis. 8

1.6 Significance of the Study.. 8

1.7 Scope of the Study.. 9

1.8 Limitations of the Study.. 9

1.9 Organization of the Study.. 10

CHAPTER TWO.. 12

REVIEW OF RELATED LITERATURE.. 12

2.1 Introduction.. 12

2.2 Theoretical Review.. 12

2.3 Conceptual Review.. 14

2.4 Empirical Review.. 18

2.5 Summary of Literature Review.. 19

Chapter Three.. 21

Research Methodology.. 21

3.1 Introduction.. 21

3.2 Research Design.. 21

3.3 Data Collection Methods. 21

3.4 Sampling Techniques. 22

3.5 Data Analysis Procedures. 23

3.6 Area of the study.. 23

CHAPTER FOUR.. 25

DATA ANALYSIS AND INTERPRETATION.. 25

4.1 Preamble.. 25

4.2 Socio-Demographic Characteristics of Respondents. 25

TABLES BASED ON RESEARCH QUESTIONS.. 29

4.3 Analysis of the Respondents’ Views on Research Question one:. 29

Discussion of Findings. 40

CHAPTER FIVE.. 42

SUMMARY CONCLUSION AND RECOMMENDATION.. 42

5.1 Summary of Findings. 42

5.2 Conclusion.. 42

5.3 Recommendations. 44

REFERENCES.. 45

Research Questionnaire.. 48

 


 

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Nigeria, as one of the most populous and economically vibrant countries in Africa, faces a critical challenge in the form of road congestion, which significantly hampers economic productivity. The exponential growth in population and urbanization has resulted in an unprecedented increase in vehicular traffic across the nation's road network. This surge in congestion not only poses a threat to the well-being of the population but also has far-reaching implications for the country's economic performance. As road networks serve as the lifeline for transporting goods and people, the persistent gridlock negatively affects various sectors, including manufacturing, agriculture, and services. Ogunlana, O. A., & Oyedele, L. O. (2019).

The economic impact of road congestion in Nigeria is multifaceted. Inefficient transportation systems contribute to increased operational costs for businesses, as delays in the supply chain disrupt production schedules and increase the cost of goods. Moreover, the time lost by individuals and businesses stuck in traffic translates to a direct loss of productive hours, hindering overall economic output. This situation has prompted researchers, policymakers, and economists to explore the intricate relationship between road congestion and economic productivity, seeking solutions to alleviate the adverse effects. World Bank. (2018).

Understanding the nuances of this issue requires a comprehensive examination of both the causes and consequences of road congestion in Nigeria. This introduction draws on a body of literature and research to shed light on the dynamics of congestion and its impact on the country's economic landscape. Key aspects to be explored include the role of inadequate infrastructure, population growth, and urban planning in exacerbating congestion. Additionally, the introduction will delve into the macroeconomic consequences of congestion, such as decreased competitiveness, diminished foreign investment, and potential long-term ramifications on economic growth. Olusanya, O. O., & Ogunlana, S. O. (2021).

1.2 Statement of the Problem

Road congestion in Nigeria has emerged as a critical challenge with profound implications for the nation's economic productivity. The rapid urbanization and population growth in major cities, coupled with inadequate infrastructure development and urban planning, have resulted in chronic traffic congestion that permeates the country's road networks. The problem is particularly acute in urban centers, such as Lagos, where traffic jams have become a daily ordeal for both commuters and businesses. This persistent gridlock has created a bottleneck in the transportation of goods and services, hindering the seamless flow of economic activities and posing a threat to various sectors, including manufacturing, agriculture, and services. . Ogunlana, O. A., & Oyedele, L. O. (2019).

The impact of road congestion on economic productivity extends beyond mere inconveniences. Delays in the transportation of goods lead to increased operational costs for businesses, as supply chains are disrupted, production schedules are compromised, and the cost of goods rises. Additionally, the time lost by individuals and businesses stuck in traffic results in a direct loss of productive hours, affecting overall economic output. The inefficiency of the transportation system, compounded by the adverse effects on businesses and individuals, raises urgent questions about the long-term economic consequences and the need for comprehensive solutions to address the root causes of road congestion in Nigeria World Bank. (2018).

1.3 Objectives of the Study

The main objective of the study is to examine the impact of road congestion on economic productivity in Nigeria. Specific objectives of the study are:

  1. 1.  Quantify the economic cost of road congestion on various sectors of the Nigerian economy
  2. 2.  Analyze the relationship between congestion levels and worker productivity in major Nigerian cities
  3. Evaluate the effectiveness of existing and proposed policies in mitigating congestion and improving economic productivity

1.4 Research Questions

To guide the study and achieve the objectives of the study, the following research questions were formulated:

  1. What is the monetary value of lost productivity, increased fuel consumption, and delayed deliveries due to road congestion in different sectors of the Nigerian economy?
  2. To what extent does the commuting time for workers in major Nigerian cities due to congestion influence their on-the-job performance and output?
  3. How effective are current policies and proposed solutions in addressing traffic congestion and its negative impact on economic productivity in Nigeria? Are there alternative strategies that could be more successful?

1.5 Research Hypothesis

The following research hypothesis was developed and tested for the study:

Ho: There is no statistical significant relationship between road congestion and economic productivity in Nigeria.

1.6 Significance of the Study

The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:

Firstly, the paper will benefit major stakeholders and policy makers in the Transportation Management sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.

Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.

Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.

1.7 Scope of the Study

The study is delimited to Apapa, Lagos. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.

1.8 Limitations of the Study

The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.

1.9 Organization of the Study

The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.

Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.

Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.

Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.

Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.