State and private railway manufacturers in the Russian Federation are pushing to enter the booming Nigerian railways market,Railway Business has reliably gathered.
As at now, the expansion,modernisation and procurement activities within the Nigerian railways are dominated by Chinese firms with huge loans from China’s Exim bank.The concession of Lagos-Kano line now handled by South Africa’s Transnet also has the Chinese as partners.
Russia has however launched a new business plan involving state support for Russian railway firms to establish a foothold in Nigeria. Such foothold is already attained in Ghana where a Russian firm is handling a 12 billion dollar railway project and investment.
The attention now directed at Nigeria also followed successful deals Russian state supported conglomerate had sealed with South Africa Transnet which has led to the acquisition of a major railway manufacturing entity in the country.
At a recent meeting in Moscow with a delegation of Nigerian businessmen,Russian officials reportedly highlighted vast opportunities for Nigerian railway sector as the African nation opened up the sector to private investment.Russia has a well developed production and manufacturing capacities in the railway sector ,the details that are presented to the Nigerian delegation.
Nigeria had earlier in the year amended the railway act which allowed private operators to enter the railway system and which has also separated the various segments of the sector for ease of management and efficiency.The new law allows private investors to enter the rolling stock,track and other services areas of the railway business.
Railway Business gathered that a Russian top flight railway business delegation may soon visit Nigeria to seal deals after Nigeria’s general elections holding in February 2019.
Nigeria had budgeted over 100 billion naira for various railways projects and procurement needs for the 2019 fiscal year.