Sir, In many ways, Nigeria Railways situation is not too dissimilar from British Rail, of plenty of motion but no real movement, or call it movement in fits and starts. We’ve been talking about reforming the Nigerian railway since Olusegun Obasanjo’s second coming. Indeed the reform and restructuring swansong began with Hamzat Zayyad’s TCPC and nearly 30 years on, we are still trying to get the legislation passed by parliament.
The structure of the industry hasn’t changed and public money continues to be sunk into a railway black hole. Humongous contracts have been awarded, sometimes in breach of procurement laws without consequence. They linger un-started for years until they are forgotten about.
A coastal highway is currently proceeding at breakneck speed but nobody seems to remember the coastal railway which was awarded 10 years ago and a shovel is yet to hit the ground. What about the Lagos-Kano modernization contract which was awarded by Obasanjo in 2006 for a duration of four years, but 18 years on has not achieved up to 35% completion? Itakpe to Abuja rail was also awarded so many years ago but has not commenced. Same with many others on the infrastructure side as the government has been unable to mobilize the required funds.
What about railway operations? The promise was for the attraction of the private sector to participate in railway operations. With an overbearing and covetous Nigeria Railway Corporation (NRC), the General Electric (GE) concession proposal was practically frustrated out of reckoning until GE divested out of the transport business altogether. The NRC continues to operate trains in an incoherent manner famously running out of fuel in the middle of nowhere while on a train journey.
Read Also: Ini Dima-Okojie sends prayers to husband amid hard times
Most disappointingly is its failure to build a credible and sustainable rail freight business.
Notwithstanding, there are green shoots of hope renewed and reason to be optimistic about the future. As the National Assembly resumes, it is hoped that the railway bill will receive its undivided attention. Let’s get this law passed for crying out loud. It’s been a 20 year hike so far and this new law will open the door for private investors to participate meaningfully in the railways. The recent locomotive engine retrofit pilot offers a glimpse into the innovative power of the private investor. It’s also about time too. It’s also about time too. So let's do it.
Getting the law passed is however just the prerequisite. Implementing the changes effectively to transform the railway landscape would be the litmus test. Creating the independent railway regulator is the starting point, while separating railway operations from asset management while retaining vertical integration will enable risk sharing and provide appropriate incentives to investors. The public sector can play to its strengths as regulator and asset owner/landlord while the private sector will play to its by operating the railway business.
The lessons that we must learn from the unbundling of the power sector continue to stare us in the face. We must employ the appropriate capital resources with skills and capacity, and leave no room for cronies and political patrons.
Finally, the non-performing non-core assets of the NRC must be set free to become productive again. These include the factories and foundries, printing presses, surplus lands, catering facilities, hospitals…and all the rest. It is time that a new dawn beckoned for the Nigerian railways.