BETWEEN THE 2016 BUDGET MAFIAS AND THE RAIL-LINES CONSTRUCTION:
BETWEEN THE 2016 BUDGET MAFIAS AND THE RAIL-LINES CONSTRUCTION
By:
Nurudeen Dauda
April 20, 2016
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There is hardly a “sweet” without “sweat” and neither a “gain” without “pain”. Even if the rail-lines construction that is being debated for as to whether or not is in the year's 2016 budget, in my view, it should be included in the budget because of its importance to the economy of Nigeria. The funds provided in the budget to complete Idu-Kaduna rail project was reportedly cut by N8.7billion.
The Nigerian Railways Corporation (NRC) was established in 1898 when the first railroad in Nigeria was constructed by the British colonial government.
Before the Structural Adjustment Programme (SAP) in 1986, Nigerian Rail Ways, Shipping lines and Airways were all working; all these transportation sectors have since collapsed. In 1988, NRC was declared bankrupt .
The Nigerian government in 2002 proposed a 25 –year railway development plan as a part of the Vision 20: 2020 economic emancipation effort. In the Vision there was a plan to connect major cities with Standard (double) gauge. The traditional rail system is “Single gauge” which takes longer hours to reach its destination. Single gauge covers 50 kilometers per hour while the standard (double gauge) covers 130 kilometers per hours.
LAGOS –CALABAR: The Lagos-Calabar Rail-lines will connect Lagos-Shagamu-Ijebu Ode-Benin City-Sapele –Warri-Yanogao- with siding to Otuoke-Port Harcourt-Aba-Uyo- Calabar with branch line from Benin- Abudu-Uko-Ogwashukwu- Ababa- Onitsha totaling 1, 402 kilometres.
LAGOS- KANO: The Lagos- Kano Rail-lines will connect Lagos -Agege- Ifaw-Ibadan -Ilorin- Minna-Kaduna- Zaria- Kano and it has a total number of 1,126 kilometres which will link several states and towns alone the way. The rail projects when completed will link the major commercial cities of the country, it will connect Logos to the oil producing region, the movement of passengers and goods will be eased; the project will however, reduce pressure on our roads thereby increase their durability and the transportation cost will be cheaper thereby boosting business activities in the country.
The contractors to the projects said: “the project will create 50,000 direct jobs opportunities for Nigerian professionals and non professionals and 100,000 indirect jobs during its execution…” (Daily Trust: April 21, 2016). Shi Hongbing Managing Director said: “…Re-construction of the Nigerian Coastal Railway project after completion, the operation, maintenance and management of the coastal railway will provide more than 20,000 permanent jobs as well…” (Daily Trust: April 21, 2016).
Nigerian Union of Railway workers (NUR) said; “Apart from such project reversing our national status as infrastructure-deficient nation, completion of such project will provide jobs opportunities for over 100,000 Nigerian youths and the nation will be further strongly integrated . Such project will stimulate rural and urban renewals , wealth and population distribution, tourism, poverty eradication, cheap and effective movement of products, ports decongestion and proliferation of dry ports which altogether will impact most positively on the economic growth” (Daily Trust: April 21, 2016).
“…the minister of Transportation, Mr, Rotimi Ameachi, mandated the contractor, CCECC, to build a railways University in Nigeria as part of that project and in a deliberate effort to develop critical Nigerian skill in railways. The CCECC is expected to build the University free as part of their Corporate Social Responsibility to Nigeria.”You don’t just dump technology on us. You have to bring the technology, the expertise and transfer to skills”. Mr Ameachi indicated that the railway is top priority for president Buhari. The president has taken the rail construction as priority. The Lagos Calabar route is allocated N60b in the proposed budget as counterpart funding and the Chinese EXIM Bank will finance the rest” (Daily Trust: April 21, 2016).
President Buhari in his Maiden Presidential Chat lamented the “opportunity wasted” by the previous government for their inability to provide “just 15%”counterpart funding for railways project which was initially agreed upon by them. The funding agreement was 85% from China and 15% from the Nigerian government and the loans from China will come from the China Export and Credit Insurance Corporation (SINOSURE), Export and Import Bank of China (China Exim Bank), China Development Bank (CDB) and Industrial and Commercial Bank of China ICBC)".
President Buhari said: “You cannot get any deal fairer than this anywhere in the world”. In his recent visit to China he apologized to the Chinese government for his country’s inability to honour the deal. However, It is very unfortunate that while the government is embarking on a project that will restart the general economy by providing “solid infrastructure” in order to industrialize the country some elements in the national assembly are busy inserting Kekenapep (Tricycles) Motorcycles, Sewing machine and Borehole projects for their constituencies.
If we invest massively on infrastructure there will be improvement in agriculture, Industry, businesses, commerce and trade thereby creating a lot of employment opportunities. The above mentioned poverty alleviation items should come from the pockets of our Senators and the honorable members and allow our national budget concentrate on something that will change our general fortune.
May God help our leaders to deliver on their promise!