My flab is aghasted by this news item. It tells us that the FG has approved contracts of $2.99bn by MOFI (Min. of Finance Incorporated) for Lagos Green line, Kano light rail and Kaduna light rail. Nothing more, nothing less!!
It doesn’t tell us whom the contracts were awarded to, what the scope is, the procurement route whether traditional, turnkey, EPC or PPP, no duration. Nothing!!!
Then we come to substance and the questions that go begging. No one is asking why the FG is purportedly investing in the railways of states. States whom have reportedly been receiving more money from the central honeypot than ever before. States whom have been empowered by the constitution amendment of 2023 to build and operate their own railway. Not that collaboration is necessarily a bad thing. But the same FG which cannot fund its own railway projects, that has not moved beyond the first 2 lots (of six) of the Abuja light rail which it has not completed in 19 years. The same FG which has outstanding contracts for the National railway network of over $20bn which it is not funding? Coastal railways (Lagos – Calabar) first awarded in 2014 has not started. Ibadan-Abuja first awarded in 2006 has yet to start. Itakpe – Abuja first awarded in 2020 is yet to start. So is Baro-Minna and Port Harcourt – Maiduguri rehabilitation. Awarded since 2019 but going no where fast. It just begs incredulity that our media do not ask these questions which begs the question of whose interest they really serve.
Importantly, why has the FG sidelined its main railway resources being the FMT ( Federal Ministry of Transportation) and NRC (Nigerian Railway Corporation) for a MOFI that has no technical railway capacity? Is this not history repeating itself? Recall that the Itakpe – Ajaokuta – Warri railway was originally awarded around 1983 by the Ministry of Mines and Power who have never built railway before. In 2006, Obasanjo awarded the $8.3bn Lagos-Kano railway and domiciled it in the OSGF (Office of the Secretary to the Government of the Federation) who has never built railway before. Both projects eventually ended up being transferred to the FMT whom at least know a thing or two about railway and certainly more than OSGF, Mines and Power or MOFI put together. Recently we hear that the OSGF is reviewing a proposal for a HSR (High Speed Rail). Are we serious or just having a laugh?
Now, collaboration between the FG and States can be good when it is purposeful and transparent. The Lekki deep sea port was developed using such a model. The main parties were FG, Lagos and a private investor as operator, and the FG interest was represented by the NPA.
My question for the media is why are they so happy to put out such abject hollowness and call it news?
I wouldn’t even ask how FEC came to be approving such incongruity seeing as the Hon. Minister of Transportation Sen Alkali has since resigned to pursue his political ambitions in Gombe but even if he were there, it may not have fallen to him to present seeing as it wouldn’t have been his bag but MOFI’s gig. Neither could we put the question to MOFI’s Armstrong Takang as he has been away at Harvard these past 3 months. Curiously MOFI is getting more appropriation for railway than FMT and NRC put together.
Now what do we know about the projects? Green line would probably have the most recent feasibility study. AFDB is known to have provided a grant which usually comes with due process oversight in delivery. Kaduna funded their own study by Systra during El rufai in 2017 but it is likely to be now out of date. The Kano study was done I believe during NIAF2 which is like a lifetime ago. Like during Kwankwaso’s second term making it out of date too. All of these projects are conceived as PPP’s with government owned infrastructure and a private sector operator. In practice however, our rail PPPs have generally unravelled as an entirely government provision via management contracts in railway operations dressed up as PPPs. The blue and red lines in Lagos and Abuja LRMT have generally conformed to this script. Major difference is that the entire risk is borne by government which invariably limits what can be achieved in terms of capacity and efficiency. But because we live in a society given to mediocrity the vuvuzelas and data people are sooner rolled out to loud hail under achievement and unsustsinable outcomes.
Too many things are not making sense in our railway space. Hopefully someone will help us make sense of it. Maybe we will wake up soon and find it was all a dream, and not a nightmare