CHAPTER ONE
1.1 Background To The Study
Road is the major mode of transport system in
Nigeria. Even in terms of haulage of goods, the advent of motor vehicles
revolutionized transport and constituted a challenge to the railroads.
According to Stanford Research Institute (1963), Road transport as at 1953 was
carrying 50% of the total ten-miles of freight in Nigeria and by 1960; the
proportion had increased to 62% while the total traffic carried by all forms of
transport had more than doubled. In the urban area a greater percentage of the
people depended on public transport while the private transport system had the
other percentage. (Ogunbodede, 1990; Ogunjumo, 1986; Okpala 1981 and Mrakpor,
1986). This was a result of rapid economic development in Nigeria. Public
transport was mainly control by the private sector. Consequently, they
formulated and implemented policies in the sector in Nigeria. In the early
1960s, the macro-economic indicators, which are yardsticks for measuring all
aspects of the growth of Nigeria’s economy, were consistently positive. This
was because the nation depended much on agricultural products for its foreign
exchange earnings and a low proportion of the population were engaged in
white-collar job. It plays a very significant role in the economic development
of a country. The importance of road transport includes carrying goods that are
heavy, bulky and affordable. Transporting perishable goods such as vegetables,
fruits, eggs, milk. It also serves as a means of moving goods and people over
short distances; transporting delicate goods such as chinaware or glassware.
However good transport means were not readily available in the rural areas. The
research seeks to investigate the assessment of prospects and challenges of
distribution of goods by road in Nigeria a case study of cement distribution by
Dangote group of companies.
1.2 Statement of the Problem
Road transport as at 1953 was carrying 50% of the
total ten-miles of freight in Nigeria and by 1960; the proportion had increased
to 62% while the total traffic carried by all forms of transport had more than
doubled. In the urban area a greater percentage of the people depended on
public transport while the private transport system had the other percentage.
(Ogunbodede, 1990; Ogunjumo, 1986; Okpala 1981 and Mrakpor, 1986). This was a
result of rapid economic development in Nigeria. Public transport was mainly
control by the private sector. Consequently, they formulated and implemented
policies in the sector in Nigeria. In the early 1960s, the macro-economic
indicators, which are yardsticks for measuring all aspects of the growth of
Nigeria’s economy, were consistently positive. This was because the nation
depended much on agricultural products for its foreign exchange earnings and a
low proportion of the population were engaged in white-collar job. It plays a
very significant role in the economic development of a country. The importance
of road transport includes carrying goods that are heavy, bulky and
affordable. Transporting perishable goods such as vegetables, fruits, eggs,
milk. It also serves as a means of moving goods and people over short
distances. However, the sector is besieged by some problem which include
economic depression, over population in the urban cities, poor maintenance
culture of public sector vehicles, activities of touts who pose as road
transport workers, etc. The problem confronting the research is to proffer an
assessment of prospects and challenges of distribution of goods by road in
Nigeria a case study of cement distribution by Dangote group of companies.
1.2 Objectives of the Study
To proffer an assessment of prospects and challenges
of distribution of goods by road in Nigeria a case study of cement distribution
by Dangote group of companies.
1.3 Research Questions
1.
What are the challenges and prospects of the
distribution of goods by road in Nigeria?
2.
What are the prospects and challenges of
distribution of cement by Dangote group of companies?
1.4 Significance of the Study
The study shall proffer an assessment of prospects
and challenges of distribution of goods by road in Nigeria a case study of
cement distribution by Dangote group of companies.
1.5 Research Hypotheses
Ho: The challenges of the distribution of cement by Dangote
group of companies in Nigeria are low.
Hi: The challenges of the distribution of cement by Dangote
group of companies in Nigeria are high.
Ho: The prospects of the distribution of cement by
dangote group of companies in Nigeria are low.
H2: The prospects of the distribution
of cement by dangote group of companies in Nigeria are high.
1.6 Scope of the Study
The study focuses on an assessment of prospects and
challenges of distribution of goods by road in Nigeria a case study of cement
distribution by Dangote group of companies.
1.7 Limitations of the Study
The study was confronted by some constraints
including logistics and geographical factors.
1.9 Definition of Terms
ROAD TRANSPORT
Road transport constitutes the conveyance of goods
and passengers on land from one destination to another over a short period of
time.