Yesterday, the Nigerian Railway Corporation (NRC) revealed that Nigeria needs a minimum of $66 billion to successfully implement essential railway infrastructure across the nation.
The Managing Director of the NRC, FidetOkhiria, suggested that the government view the construction of railway lines as a long-term social investment rather than a pursuit of immediate profits. Okhiria emphasized that developing the railway network would not only boost Nigeria’s economy but also alleviate widespread transportation challenges throughout the country.
Back in 2017, approximately seven years ago, the Nigerian government estimated it would require around $16 billion to build and upgrade significant rail infrastructure.
“The money isn’t readily available; it totals about $16 billion, and you can’t simply conjure that amount out of thin air,” remarked RotimiAmaechi, who was the Minister of Transportation at the time.
In contrast, earlier this year, Senator Sa’idu Alkali, the current Minister of Transportation, disclosed that approximately $35 billion would be necessary to achieve a comprehensive and operational railway transportation system in Nigeria.
Okhiria argued that while government officials often view railway infrastructure as a potential business venture for generating profit, the focus should shift towards improving the quality of life for the population.
“Developing transportation infrastructure shouldn’t solely aim at immediate financial gains in Naira, as the benefits will manifest indirectly. Connecting cities like Abuja to Lagos and Kano to Lagos, where ports are located, will stimulate economic growth and commerce, indirectly benefiting the economy even if not directly profiting the government.
“Instead of focusing on the immediate return on investments like purchasing locomotives, the priority should be making people’s lives more comfortable. In the US, a capitalist stronghold, rail services are overseen by the government, with provisions like bailouts supporting businesses when needed.”
He pointed out that when private companies face difficulties, the government intervenes to prevent their collapse, recognizing that they indirectly support the economy by providing employment opportunities.
“If you’re focused solely on profitability while planning to connect my village and enable people to travel by rail to Lagos, that approach won’t be effective,” he argued.
Highlighting the importance of connecting southern and northern Nigeria via rail, he expressed hope that the government would prioritize completing the Itakpe route to Kaduna soon.
Regarding local capacity, he asserted that Nigerian engineers working with the NRC have the capability to build locomotives. He noted that in companies like GE, funding for research and development rivals Nigeria’s annual budget.
“The focus shouldn’t just be on the railway budget. The real issue lies in our capacity. Even Chinese engineers working here often turn to our expertise when they encounter challenges,” he emphasized.
He mentioned that an estimated $66 billion is needed to connect Nigeria as outlined in the development plan when asked about the cost of developing rail infrastructure in the country.
He expressed concern about the persistent sabotage of rail tracks by criminals, attributing recent derailments to their activities. “Despite our efforts, there are still individuals tampering with our tracks,” he lamented.
He shared that additional security measures have been implemented since the last attacks on trains, including the installation of CCTV cameras on locomotives.
“To safeguard against breaches caused by abnormal interventions, we’ve enhanced security measures. This initiative spans our entire operations,” he explained. “We’ve also introduced new technologies such as internal and external cameras on trains, including panoramic cameras capable of covering up to one kilometer, given that train drivers require about 800 meters to come to a stop.”