Role Of Transportation And Communication In The Economic Development

Introduction

1.1 Background of the Study

The role of transportation and communication cannot be over emphases in the economic development of Nigeria, because the fundamental purpose of transportation and communication and their various needs in the form of material facilities and service. However, transportation and communication facilities are vital infrastructure of a modern economy transportation system comprises of several models including road, rail, water ways etc. and communication system includes post office, courier service wireless, and electronic media. According to a report from environmental news on Nigeria transportation and communication, Nigeria transportation network was one of the best in Africa in 1990, featuring an existence system of paved high way, rail road, airports and ports. During the oil boom of the 1990s, however, most government funds era-marked (assigned) for transportation were applied to the construction of new roads and maintenance of existing facilities was ignored.

As a result the transportation system was plague with congestion and a deteriorating infrastructure. Like many economic activities that are intensive in infrastructure, the role of transportation sector is an important component of the economy impacting on development and the welfare of population. When transportation system are efficient, they provide economic and social opportunities and benefits that results in positive multipliers effects such as better accessibility to market employment and additional investments, when transportation system are deficient in terms of capacity or reliability, they can have an economic cost such as reduced or missed opportunities.

Transportation also carries and important social and environmental load which cannot be neglected thus, form a general stand point, the economic impact of transportation can be direct and indirect. The direct impact is related to accessibility change where transportation enables to save time and costs. Indirect impact is related to the economy multiplier, effect where the price of commodities goods or services drop and /or their variety increases. (News watch Nigeria social infrastructure Edo State.

On the other hand, according to Wikipedia, transportation links together the factors of production in a complex wed of relationship between producers and consumers, the outcomes is commonly a more efficient division of production by an exploitation of geographical comparative advantages as well as the means to develop economics of scale and scope. The productivity of space, capital and labour is thus enhanced with efficiency of distribution and personal mobility. It is acknowledge that economic growth is increasingly linked with transportation developments, namely infrastructures but also managerial expertise is crucial for logistics.

Moreover, the article published by environmental news, on Nigeria’s transportation and communication stresses that early modern communication took place in three modes, spoken words manuscripts writing especially letters and prints, oral communication was the oldest of these three and in many orays, early modern society was still primarily on oral society. Although literacy increased enormously during this period, most people, especially among the lower classes, possessed limited reading and speech for preserving and transmitting information. Furthermore, as a result of a major expansion of one of the best domestic Tele communication system in sub-Sahara Africa in 1990, about 11,000 telephones were put in places in Nigeria at the end of the 1980s about one third of the were in the capital.

Also a domestics satellite system with nineteen ground stations, along with coaxial cable and a micro wave network linked all major urban areas most localities could received at least one of the society-five amplitude modulation (AM) radio stations, more than a dozen cities had frequency modulation (FM) radio stations short wave broadcasts from six transmitters were directed at remote rural areas, broad cast were in English, Yoruba, Hausa, Igbo and twelve other languages. Most urban areas also had television service.

In 1990, the country had an estimated ten million radio and ten million televisions. However, international telecommunication were modern and provides the high quality links to the rest of the world, in coordination with international telecommunication Satellite Corporation (intelsat), Atlantic Ocean and India Ocean satellite, three ground stations made live television broadcasting, and direct telephone dialing was possible between Nigeria was the terminus of an undersea coaxial cable linking the West Africa countries with France and capable of carrying nine hundred and sixty simultaneous long distance telephone calls. (Wikipedia: Finnish Transportation Safety Agency).

1.2 Statement of the Problem

Transportation and communication is a key factor in economic development be it air, sea or road transportation courier services, post offices, wireless electronic media etc. it is required for movement of goods, personnel and services, broadcasting, transmitting and dissemination of information, without which there will be economic stagnation.

For to long, the transportation system has suffered abandonment in the hands of previous administration, resulting in regrettable dilapidation of infrastructures the quality of the roads has also constituted death traps and nightmares to motorists and commuters.

Neglected by both public and private organization in Nigeria, and in consistency in government policy and implementation can be huge problem to transportation, however, communication can play a vital role in the economy, it there is adequate coordination of infrastructural planning and the problem of lack of equipment standardization which created problems of spare part stocking in been tackled, so therefore, there is need for this research work to based on the role transportation and communication both play in the development of Oredo Local Government Area in order for these problems stated above not to emerge.

1.3 Objectives of Study

The primary aim of this study is to examine the role of transportation and communication the Gross National Product of Nigeria.

Specific objectives include;

1. To examine the extent to which transport and communication are given priorities in the economy.

2. To examine the policies used in measuring the impact of transport-communication in Nigeria.

3. To examine the degree of responsiveness of a change or log in the communication sector to that of the transportation sector.

4. To examine the relationship between the transportation-communication sector, and its effect on GDP.

1.4 Research Questions

1. What is the type of relationship that exists between transport and communication?

2. Can effective and efficient transport-communication service stimulate development?

3. What factors hinders the performance of transport-communication in Nigeria?

4. Can transport-communication if effectively deployed contribute significantly to the Nigeria GDP?

5. Can transportation and communication aid business in Nigeria?

6. How the influence of the government and the regulating authorities does affect the performance of the sector?

1.5 Statement of Hypothesis

Hypothesis 1

Ho: There is no significant relationship between communication and GDP.

Hi: There is a significant relationship between communication and GDP.

Hypothesis 2

Ho: There is no significant relationship between transport and GDP.

Hi: There is a significant relationship between transport and GDP.

1.6 Significance of the Study
The importance of this research is to discuss the role of transportation and communication play in the development of Oredo Local Government Area and the nation at large.

This research will also enable the government acknowledge the fact that transportation and communication is of great importance to the development of the economy and thereby enabling them provide solutions to the numerous existing problems.

1.7 Scope of the Study
This research will focus attention on the role of transportation and communication in Oredo Local Government Area and its contribution to the economic growth and development.

The scope of this study shall be broadly divided into chapters that will critically examine the role of transportation and communication in Oredo Local Government Area of Edo State.

1.8 Definition of Terms
Transportation:
The means by which goods and services, people are moved from one place to another, using vehicles, road etc.

Communication:
This is the process of expressing ideas, and feeling or of giving people information.

Infrastructure:
The basic system and services that is necessary for a country organization for example buildings, transportation, water and power suppliers and administrative system.

Development:
The gradual growth of something’s so that it becomes more advanced in other words, it is the process of producing or creating something new or more advanced.

Economy:
The relationship between production, trade and the supply of money in a particular country or region.