By Temitope Adebayo
The Minister of Transportation, Senator Sa’idu Alkali has revealed that $35 billion is needed to meet the realization of an adequate and functioning railway transportation system in Nigeria.
The minister made this assertion on the occasion of the presentation and defence of the N46.6 billion 2024 budget proposal for the Ministry of Transportation, before the Joint Committee of the Senate and the House of Representatives on Land Transport, in Abuja on Friday.
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Alkali intimated the lawmakers on the plans to scale up the transportation and logistics value chain to be commensurate with Nigeria’s population and size. He noted that this would ensure the connection of important industrial and agricultural hubs with railway networks.
However, the minister that insufficient funding has been a challenge to addressing critical needs of the country’s rail infrastructure and propelling it to a more efficient, valuable and sustainable transport system.
“I and my team have resolved to work hard at ensuring the realisp9ation of Nigeria’s Integrated Infrastructure Master Plan, however, meeting the set target is significantly challenged by funding gap especially the background of dwindling revenue accruing to the country. In the Railway Transport Sub-sector, an investment portfolio of close to US$35 Billion is estimated as the funding requirements to meet the realization of an adequate and functioning railway transportation system, “ the Minister revealed.
Alkali further informed the Joint Committee of the Senate and the House of Representatives on Land Transport of the Ministry of Transportation’s plan to connect close to 6,000 Kilometers of Standard Gauge Railway.
He also said the ministry would rehabilitate the existing 3,505km Narrow Gauge Lines between the North and South, East and West regions of the country to reach the oil and mineral resources zones, agricultural belt as well as port of origin and destination, especially the Lekki Deep Sea Port.
The minister stressed that adequate funding is needed to achieve these goals; however, he noted that it had become quite challenging to secure funds for international development financing entities that will seize the opportunity to gain partners for Nigeria.
“Getting these funds from the international to financing institutions has, however, been challenging over the past few years. For example, the ongoing Lagos – Kano and Kano – Maradi Railway Modernisation Project and the rehabilitation and reconstruction of the Port Harcourt – Maiduguri Eastern Narrows gauge have been slowed by funding.
“The Ministry also has some debt liability of unpaid Certificates for Job Completion under the Lagos – Ibadan Railway Project,” Alkali stated.
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