A transport and logistics expert, Dr Segun Musa, has called for a redirection of the focus of Nigerian railway from passenger movement to cargo movement.
He said the Federal Government ought to have focused on cargo movement from the ports, which would have hugely impacted the economy.
“Passenger services cannot generate the revenue we need to sustain the rail sector. Poor feasibility studies and a lack of long-term planning continue to plague the industry,” Musa said.
He said the $7.5 billion loan obtained from the Chinese Government for the construction of the Lagos – Kano standard gauge rail could become a colossal waste for lack of proper direction for the railway services.
Musa, the Deputy National President of the National Association of Government Approved Freight Forwarders (NAGAFF), said the modern rail line on which the fund was invested is presently under-utilised due to misplaced priorities.
Recall that construction of the modern rail lines started in 2017, with the former Minister of Transportation, Rotimi Amaechi, explaining then, that $1.4 billion of the loan was for the construction of the Lagos to Ibadan standard gauge, while $6.1 billion would be utilised for the Ibadan–Ilorin–Minna-Kaduna-Kano leg of the project which is the third and last phase.
Speaking at a roundtable organised by the Maritime Reporters Association of Nigeria (MARAN), Musa knocked the government for making a mess of the huge loan meant for the construction of the modern railway.
He recalled the initial efforts to revamp the rail system under Obasanjo’s presidency, with an emphasis on moving freight rather than passengers.
“We proposed focusing on cargo transport, as the passenger sector didn’t have the potential to generate substantial income,” Musa said, adding that instead of prioritising freight, resources were funneled into upgrading passenger comforts.
“The result is that the rail system has failed once again, and today, much of the investment in the rail sector has gone to waste. Had we prioritised cargo transport, the income generated would have repaid the investment by now,” Musa stated, expressing frustration over the government’s lack of foresight.
He said: “Had we prioritized cargo transport, the income generated would have repaid the investment by now. Instead, the sector has remained in a financial bind as passenger services for which the government focused cannot generate the required revenue to pay back the loan.” he said.
According to him; “the place of an efficient transport system cannot be over-emphasized to effectively drive the economy. No economy can truly thrive without robust transportation. For over 20 years, we have largely ignored the transportation sector’s impact on our economy, relying on the road mode that was outdated and ineffective.”
Musa expressed frustration over the government’s lack of foresight.
He carpeted the Nigerian Railway Corporation (NRC) which he argued had performed poorly in managing the corporation with short-sighted policies, stating that officials have been conducting businesses of transportation with poor strategies that have failed in other climes.
X-raying the road transport, Musa said the sub-sector has remained the most chaotic because it is unregulated. “Road transport is the most unorganized sector with no proper regulation. Anyone with enough money can buy trucks, buses, or cars and put them on the road with no standardization or oversight functions being carried out by any agency,” he said.
He explained that this usually slows down trade as it leads to constant congestion that hampers economic growth.
Musa also took a shot at the aviation sector which he described as over-regulated but poorly managed. “Despite being the most regulated sector, we’ve had the preponderance of wrong people being in charge, making efficiency a major issue in the sector,” Musa observed.
Reflecting on past air incidents, he added, “during the Obasanjo administration, when air crashes were frequent, stakeholders admitted to cutting corners. How is it possible for the most regulated sector to be rife with corner-cutting? The issue stems from the government’s failure to address the financial and operational needs of the aviation industry.”