THE ROLE OF PARTNERSHIPS BETWEEN THE PUBLIC AND PRIVATE SECTORS IN IMPROVING TRANSPORTATION IN NIGERIA (A CASE STUDY OF AKTC, UYO)

CHAPTER ONE

INTRODUCTION

1.1      Background to the Study

The level of infrastructure development in any country is an important indicator for measuring democratic governments' accomplishments. The global demand for critical infrastructure services has grown substantially over time, far surpassing the capability of existing resources. Like many other developing countries, Nigeria is under increasing pressure to live up to the expectations of its people (Ibrahim et al, 2007). Regardless of its financial resources, the government has a social and political duty to provide the people with essential services.

The need for major investments that exceed the government's limited resources to overcome the significant infrastructural gap has led to a rise in government collaboration with the private sector through contractual arrangements known as Public Private Partnerships (Itu et al. 2021). Public-private partnerships (P3) are well-known tools, according to the United Economic Commission (2002). A wide range of public services, such as telecommunications, water supply, healthcare, waste management, electricity, housing, education, and transportation, are included in addition to road infrastructure. Regardless of the government's economic resources, it is a social and political commitment to provide fundamental services to the people.

The introduction of the Structural Adjustment Program (SAP) in 1986 made the government of Nigeria's efforts to interact with the private sector more apparent. The National Economic Empowerment and Development Strategy (NEEDS) of the Obasanjo administration, which carried out major socioeconomic reforms in 2003, had as its primary objective the restructuring of government operations. Consequently, private sector entities and non-profit organizations have been increasingly involved, mirroring worldwide patterns.

Notably, government provision of public goods and services such as roads, dams, hospitals, education, and defense does not cease when public-private partnerships are formed (Marcellus, 2009). According to Oyedele (2014), a public-private partnership is a financial initiative that aims to share project development and management risks between the government and one or more private organizations. Nevertheless, this initiative was created in response to the issues with the traditional model of public service delivery, which often include subpar facilities or services, a lack of value for the money spent, corruption, abandonment, poor maintenance, and mismanagement of revenue or proceeds from social services. Initiatives to address the shortcomings of the conventional public service delivery model and encourage private sector involvement have resulted from these problems. These initiatives aim to establish a partnership that pools resources to provide the infrastructure and services required for the nation's social, political, and economic development (Makinde, 2019).

Public-Private Partnerships in transport are not new but remain evolving. As the population and the number of vehicles increases, governments are unable to match the pace of required public transport infrastructure at short intervals as required by citizens. This puts governments in a terrible situation and thus has prompted governments the world over to adopt public-private partnerships, a model of financing that can help government escalate the provision of transport infrastructure (Eze, 2018).

Initiatives such as the Lagos Bus Rapid Transit (BRT) system, which was introduced in partnership with private operators, have significantly improved urban mobility in Nigeria (Ogunleye and Oladimeji, 2019). In addition to drawing in the required investment, these partnerships have boosted the transportation sector's output and innovation. This demonstrates the revolutionary potential of PPPs (public-private partnerships) in the field of transportation.

Private sector involvement can help close transportation gaps, as evidenced by partnerships with the Akwa Ibom Transport Company (AKTC) in Uyo, Akwa Ibom State. However, these collaborations' full potential has not yet been reached. This study examines how PPPs can improve transportation in Nigeria, focusing specifically on AKTC in Uyo.Top of Form

1.2      Statement of the Problem

The transportation sector in Nigeria faces multifaceted challenges that impede its efficiency and effectiveness, hindering economic growth and societal development. One of the primary issues is the inadequate infrastructure, characterized by poorly maintained roads, congested ports, and insufficient public transit systems. This infrastructure deficit not only hampers the movement of goods and people but also contributes to increased transportation costs and delays, negatively impacting businesses and citizens alike (Ilozue & Ibe, 2020).

Moreover, the lack of integration and coordination among various modes of transportation exacerbates the problem, leading to inefficiencies and suboptimal use of resources. Another pressing concern is the limited financial resources available for transportation infrastructure development and maintenance. The government's budgetary constraints and competing priorities often result in insufficient funding for critical transportation projects (Okoko & Arogundade, 2018). As a result, essential infrastructure upgrades and expansion initiatives are delayed or canceled, perpetuating the cycle of underdevelopment and exacerbating the existing challenges in the transportation sector.

Additionally, the traditional approach of relying solely on public funding has proven inadequate in addressing the scale and complexity of Nigeria's transportation needs, necessitating alternative financing mechanisms and innovative solutions.Top of Form

Public-private partnerships (PPPs) present a viable option for mobilizing resources, leveraging private sector expertise, and fostering collaboration to address these challenges effectively.

This study aims to examine the potential of public-private partnerships in improving transportation infrastructure and services in Nigeria, using the Akwa Ibom Transport Company (AKTC) in Uyo as a case study. By exploring the successes and limitations of this model, the research seeks to provide actionable insights into how PPPs can be optimized to address the persistent challenges in the Nigerian transportation sector.

1.3 Objectives of the Study

The main objective of the study is to examine the role of partnerships between the public and private sectors in improving transportation in Nigeria. Specific objectives of the study are:

1. To assess the impact of PPPs on the efficiency of public transportation systems in Nigeria.
   1. To analyze the financial sustainability of PPP projects in Nigerian transportation.
   2. To evaluate the transparency and accountability of PPPs in Nigerian transportation development.

1.4 Research Questions

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

1. How do PPPs influence wait times, travel speeds, and route coverage in Nigerian public transportation systems compared to traditional public provision?
2. How do revenue-sharing models within PPPs impact the affordability and accessibility of public transportation for Nigerian citizens?
3. How do PPPs affect public participation and oversight in transportation infrastructure projects in Nigeria?

1.5 Research Hypothesis

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

Ho: There is no significant relationship between partnerships between the public and private sectors and the improvement of transportation 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 analyzed 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 organizations 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 AKTC, Uyo. 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.