UNBUNDLING NIGERIAN RAILWAY FOR EFFICIENCY

The Ministry of Transportation is initiating measures to open up the corporation, writes Augustine A. Salifu

The Nigerian Railway Corporation (NRC) was established by Act CAP N129 Laws of the Federation of Nigeria 2004 in 1955 to facilitate the operation of effective rail system for carriage of passengers and goods across the country.

The objective of the Corporation is to provide an alternative road transport system that is affordable and cost effective, operated with high sense of professionalism to contribute towards economic development and ease of doing business through conveyance of goods and services at affordable rate with guaranteed public safety and efficiency.

The rail system has been identified as a major form of transport that enhances economic development in view of its safety, affordability, revenue generation potentialities, geographical spread and welfare component in accommodating the interest of the rich, the poor and stranded.

After the enactment of the Act in 1955, it was amended in 1958 to strengthen its contents towards effective operation to ensure sustainable outcome at the time the colonial regime was busy strengthening laws and institutions as part of careful arrangements to hand over power to a democratically elected indigenous government.

Despite the effort of ensuring the bequest of effective legal regime to regulate its operations, the NRC Act could not meet expectations given its archaic nature, obsolete provisions, and over concentration of powers. 

Due to paucity associated with the legal regime, the Corporation faces financial, logistic and operational challenges which affect its operations, visibility, and contribution to economic development.

It is interesting to note that on assumption of office, the Transport Minister, Senator Said Ahmed Alkali, commenced the reform initiative of President Bola Ahmed Tinubu by undertaking an inspection tour of facilities of the Nigerian Railway in Lagos and major routes including Lagos-Ibadan, Abuja-Kaduna-Kano, Kano-Maradi with extension to Dutse Federal University of Transportation, Daura and the Eastern narrow Guage Port Harcourt to Maiduguri.

The tour was undertaken to familiarize the minister with ongoing railway modernization projects and interact with the management of NRC and that of constructing companies to identify challenges and areas that require the intervention of the ministry to enhance efficient service delivery.

Major resolutions made during the familiarization visit include a ministerial directive to complete and operate the Asiwaju Bola Ahmed Tinubu Train Station within three weeks from the date of such visit, expansion of assembling of containers at Rail Wagon Assembly Plant at Kajola to make the realization of objectives of transfer of technology a reality while the Managing Director of Nigerian Railway Corporation, Fidet Okhiria, was directed to train the staff of the corporation to facilitate effective management after handing over of the projects on completion.

Also, the China Civil Engineering Construction Company (CCECC) has been directed to complete narrow gauge from Lagos to Kano within three months from the last familiarization visit which has been completed and ready for operation any moment from now. This development will ease difficulties in conveyance of containers and save the rail track lines from vandalism as a result of underutilization.

At the moment, the construction of Lagos – Ibadan Standard Gauge of 156.5km with extension of 6.5km to Lagos Port Complex at Apapa with 10 Railway Stations has been completed and put to use. Also, the Abuja – Kaduna Standard Gauge of 186.5km with railway stations has been completed and put to use while the Kano-Maradi Standard Gauge of 387km with extension to Dutse in Jigawa State is progressively ongoing under EPCTF financing model.

Furthermore, the Eastern Narrow Gauge Railway Line of 2044.1Km covering Port Harcourt to Maiduguri, Bonny Deep Sea Port, Port Harcourt Industrial Park Projects, Construction of new narrow gauge branch line to Yobe State from Goniri to Gashua 216Km and 150.1Km from Elelenwa-Ubima-Owerri – Onne to Bonny including construction of Onne Port Station is ongoing with reports that indicate appreciable commitments by the contractors whose counterpart fund is anxiously awaited to harness its potential on completion.

In addition to the foregoing numerous ongoing projects which the ministry and the federal government are passionate about completing especially given the centrality of transportation in the Renewed Hope Agenda of Mr. President, a number of other rail modernization projects whose execution is about to commence that cut across the coastal and central states within the country – exist.

The Central Rail Line Abuja – Itakpe – Warri of 315.12Km standard gauge covering the FCT, Kogi, Edo and Delta States along with the Coastal Rail Line (Lagos – Calabar) of 1,402K standard gauge covering Lagos, Ogun, Edo, Delta, Bayelsa and Anambra States are by products of the Presidential Committee for the Concessioning of the Nigerian Railway Corporation constituted by the Obasanjo Administration in 2004.

The ministerial initiative in facilitating speedy execution of the on-going rail modernization projects has been extended to the completion of Rolling Stock Projects involving contracts for the design, manufacture, installation, commissioning of rolling stock, supply of spare parts and maintenance of equipment for all the ongoing projects.

In spite of the huge on-going projects which experts believe would be sufficient to meet the transport demands of Nigerians if completed, the federal government in collaboration with the private sector is initiating new projects from Lekki Deep Sea Port to Ijebu-Ode to Kajola, Port Harcourt to Abuja and a Bullet Train (high speed rail) Integrated Project to collectively support the realisation of the Renewed Hope Agenda aimed at ensuring affordability operation, efficiency and public safety in Nigeria’s rail transport system.

Added to the above multiple projects, the ministry is also facilitating the establishment of National Road Transport Data Bank through a Private-Public Partnership financed by Africa Asia Investment Limited. Beyond the promotion of direct foreign investment of about USD435,000,000 million to the economy, the project will create over 20,000 jobs, enhance public safety on our highways through vehicle identification tracking and transform the national mobility infrastructure in consonance with international best practices.

It is noteworthy the ministry’s collaborative efforts with more foreign investors such as Qatar- based Messrs Eco-transit Solutions to cushion the effect of fuel subsidy through provision of electric vehicles using the latest emerging technologies in the electric and green transportation sector. The intervention will surely serve dual purpose of easing public inter-state transport and reviving the Federal Urban Mass Transit Scheme through effective utilisation of the new electric vehicles that are designed to be eco-friendly, cost effective and efficient.

After evaluating the chain of activities initiated by the ministry in discharging supervisory role over its agencies, the recent operational developments by the corporation will provide alternative data of benchmarking its contribution in stimulating national economic development and measures of corporate reconstruction to maximise its huge unexhausted potential.

The ministry has initiated a Bill for consideration and passage into law by the National Assembly. The Bill proposes for new entities under the unbundled NRC which are: National Railway Agency, National Railway Carrier, Railway Assets Management Company and Nigerian Railway Properties Management Company.

It is expected that the proposed initiative will put to rest the prolonged and much criticised old NRC Act that suffers obsoleteness, defective content and inadequate provisions for private sector participation.

 Salifu is of the

Coalition for Transparency and Integrity Watch,

Abuja