Unbundling Nigerian Railways Company for Rail Sector Reform, by Augustine A. Salifu

Unbundling Nigerian Railways Company for Rail Sector Reform, by Augustine A. Salifu

The Nigerian Railway Company (NRC) was established by the Nigerian Railway Company Act, CAP N129, Legal guidelines of the Federation of Nigeria ,2004 in 1955 to facilitate the operation of an efficient rail system for the carriage of passengers and items throughout the nation.

The target of the Company is to supply an alternate street transport system that’s inexpensive and cost-effective, working with a excessive sense of professionalism to contribute in the direction of financial growth and ease of doing enterprise by way of the conveyance of products and companies at inexpensive charges with assured public security and effectivity.

The rail system has been recognized as a significant type of transport that enhances financial growth given its security, affordability, income technology potentialities, geographical unfold and welfare part in accommodating the curiosity of the wealthy, the poorer and the stranded.

After the enactment of the Act in 1955, it was amended in 1958 to strengthen its contents in the direction of an efficient operation to make sure sustainable outcomes on the time the colonial regime was busy strengthening legal guidelines and establishments as a part of cautious preparations handy over energy to a democratically elected indigenous authorities.

Regardless of the hassle to make sure the bequest of an efficient authorized regime to control the operations of the Company, the Nigerian Railway Company Act couldn’t meet such expectations given its archaic nature, out of date provisions, over-concentration of powers in a Company that’s lengthy overdue for unbundling to attain the cherished goal of utilising its potentials for financial growth and compelling need to be in tune with present financial realities, which in the meanwhile, the Act is struggling to deal with.

Along with the foregoing paucity related to the authorized regime, the Company faces monetary, logistic and operational challenges which have an effect on its operations, visibility and contribution to financial growth.

The target of this train is to appraise the present state of affairs within the Nigerian Railway Company and share information of ongoing rail sector reforms on the inception of the Tinubu-led administration.

From the verified data accessible at our disposal, the brand new Minister of Transportation, Sen. Mentioned Ahmed Alkali, commenced the reform initiative by endeavor a familiarization/inspection tour of the Nigerian Railway Headquarters, Lagos, varied railway modernization initiatives which embrace: Lagos-Ibadan, Abuja-Kaduna-Kano, Kano-Maradi with extension to Dutse, Federal College of Transportation Daura and the Japanese Slim Guage, Port-Harcourt to Maiduguri about three weeks after assumption of workplace.

The tour was undertaken to familiarize the Minister with the newest developments on the continued railway modernization initiatives throughout the nation and work together with the administration of the Nigerian Railway Company and managing staff of developing firms to determine challenges and areas that require the intervention of the Ministry to boost environment friendly service supply.

Main resolutions made through the familiarization go to embrace a ministerial directive to finish and function the Asiwaju Bola Ahmed Tinubu Prepare Station inside 3 weeks from the date of such go to, growth of assembling of containers on the Rail Wagon Meeting Plant at Kajola to make the belief of goals of switch of expertise a actuality, whereas the Managing Director of Nigerian Railway Company, Engr. Fidet Okhiria was directed to coach the employees of the company to facilitate efficient administration after handing over the mission on completion.

Additionally, the Nigerian Railway Company has been directed to rehabilitate the outdated Slim Gauge from Lagos to Kano for passengers and freight inside 3 months from the final familiarization go to which has been accomplished and is prepared for operation any second from now. This growth will ease difficulties within the conveyance of containers to spice up financial actions.

In the mean time, the development of Lagos – Ibadan Normal Gauge of 156.5km with the extension of 6.5km to Lagos Port Complicated at Apapa with 10 Railway Stations has been accomplished and put into use. Additionally, the Abuja–Kaduna Normal Gauge of 186.5km with 9 Railway Stations has been accomplished and put into use in addition to Warri-Itakpe of 317.12km Normal Gauge.

However, the Kaduna-Kano, Kano-Maradi of 387km Normal Gauge with extension to Dutse in Jigawa state and Port Harcourt-Maiduguri, Japanese Slim Gauge of 2044.1km overlaying Port Harcourt to Maiduguri, Bonny Deep Sea Port, Port Harcourt Industrial Park Tasks, Development of the brand new Slim Gauge department line to Yobe state from Goniri to Gashua 216km and 150.1km from Elelenwa-Ubima-Owerri-Onne to Bonny together with the development of Onne Port Station is ongoing with a powerful progress report that signifies an considerable dedication by the Contractors whose counterpart fund is anxiously awaited to harness its potentials on completion.

Along with the foregoing quite a few ongoing initiatives which the Ministry and the Federal Authorities are enthusiastic about finishing particularly given the centrality of transportation within the Renewed Hope Agenda of Mr. President, numerous different rail modernization initiatives whose execution is about to start that lower throughout the coastal and central states inside the nation exist.

The Minister has additionally directed the Contractor to make sure the completion of the Port Harcourt-Aba Rail Line earlier than the tip of the primary quarter of this 12 months.

Info reaching us on the level of this communication reveals a significant funding problem which prevents the contractor, CCECC from commencing the execution of the Central and Coastal Rail Traces, though the Ministry is making efficient facilitation to beat the problem.

Our investigation additional revealed that the ministerial initiative in facilitating speedy execution of the continued rail modernization initiatives has been prolonged to efficient dedication in the direction of sourcing funds for the completion of Rolling Inventory Tasks involving contracts for the design, manufacture, set up, commissioning of rolling inventory, provide of spare components and upkeep of kit for all the continued initiatives.

Regardless of the large ongoing initiatives which consultants inside the rail sector consider can be ample to satisfy the transport calls for of Nigerians if accomplished, the Federal Authorities in collaboration with the personal sector is initiating extra new initiatives from Lekki Deep Sea Port to Ijebu-Ode to Kajola, Badagry to Tincan, Port-Harcourt to Abuja and a Bullet Prepare (Excessive Velocity Rail) Built-in Challenge to collectively assist the realisation of the Renewed Hope Agenda aimed toward making certain affordability, operational effectivity and public security in Nigeria’s rail transport system.

Added to the above a number of initiatives, the Ministry can be facilitating the institution of the Nationwide Street Transport Knowledge Financial institution by way of a Non-public Public Partnership financed by Africa-Asia Funding Restricted to advertise direct overseas funding. The mission will create over 20,000 jobs, improve public security on our highways by way of automobile identification/monitoring and remodel the nationwide mobility infrastructure in consonance with worldwide finest practices.

In a associated growth, the Ministry is pacifying collaborative efforts with extra overseas buyers similar to Messrs Eco-transit Options, a Qatar-based firm to cushion the impact of gasoline subsidy elimination by way of the supply of Compressed Pure Gasoline (CNG) automobiles utilizing the newest rising applied sciences within the transportation sector.

It’s submitted that this intervention will serve a twin goal of easing public inter-state transport and reviving the Federal City Mass Transit Scheme by way of efficient utilisation of the brand new CNG automobiles which might be designed to be eco-friendly, cost-effective and environment friendly.

After taking inventory of actions inside the Ministry and its companies, the Honourable Minister is about to guide the conduct of the primary Nationwide Council of Transportation below his management to rob minds with State Commissioners of Transportation to debate rising developments that may strengthen the transport sector in the direction of efficient implementation of its part within the Renewed Hope Agenda of the Tinubu led Administration.

After evaluating the chain of actions initiated by the Ministry in discharging supervisory function over its companies particularly the NRC which is the key trade participant concerned within the provision of rail companies, it’s vital to focus on the latest operational developments by the Company to supply different knowledge of benchmarking its contribution in stimulating nationwide financial growth and what classes may very well be learnt to counsel additional measures of company reconstruction to maximise its big unexhausted potentials now and in future.

However the diversified challenges affecting the operations of the NRC as earlier acknowledged within the background of this write-up, it’s apt to notice that the Company is deeply concerned in transporting each passengers and items throughout the nation.

The routes for Lagos-Ibadan, Abuja–Kaduna and Warri-Itakpe Normal Gauge are operationally useful for the carriage of passengers and items easing loads of difficulties confronted by passengers on the freeway significantly given the baffling safety scenario.

As well as, the NRC is actively discharging freight of containers from APTM Lagos to Ibadan repeatedly. From September 2023 after the Commissioning of the container evacuation to decongest the port by the Hon Minister, a complete of two,737 containers have been transported to Ibadan.

In a short time, the freight of containers might be prolonged to Kano given the latest rehabilitation of the Slim Gauge Rail Line from Ibadan to Kano anticipated to be operational quickly.

Moreover, the NRC is concerned within the freight of cement from La-farge cement manufacturing facility at Ewekoro in Ogun State to Ibadan the place the identical may very well be additional transported to the North by way of the just lately rehabillitated outdated Slim Gauge. It was found that from March 2023 to January 2024, 52,890 tons of cement has been transported to Ibadan by NRC.

Additionally, the NRC contributes in the direction of environment friendly freight of gasoline pipes for the Nationwide Gasoline Challenge from Ajaokuta-Warri to Itakpe. This endeavor has been repeatedly discharged by the Company making the realisation of the mission a actuality with a excessive sense of cost-effectiveness and safety of the gasoline pipes in transit.

At present, the NRC is collaborating with Plateau State Rail Mass Transit engaged on the observe and the coaches to make the Jos-Abuja route operational earlier than the tip of the primary quarter of this 12 months.

In recognition of the Tinubu Administration’s inclusion of transportation as main part of the Renewed Hope Agenda, the Ministry is named to revisit the suggestions of the 14-member NRC Unbundling Committee arrange in 2021 to, amongst others; develop a strategic plan for the unbundling of the NRC, create alternatives for personal sector participation to scale back authorities involvement within the growth/operation of the railways and make sure the provision of environment friendly, inexpensive and well-secured rail service throughout the nation.

Our investigation has additional revealed that the Ministry has initiated a Invoice for consideration and passage into legislation by the Nationwide Meeting. The Invoice proposes new entities below the unbundled NRC that are: the Nationwide Railway Company, Nationwide Railway Provider and Railway Property Administration Firm.

It’s anticipated that the proposed initiative will put to relaxation the extended and much-criticised outdated NRC Act that suffers obsoleteness, faulty content material and insufficient provisions that foreclose window for personal sector participation.

Augustine A.O. Salifu
Govt Director
Coalition For Transparency and Integrity Watch