Reps seek concession of rail services

Beloved JohnOctober 27, 20232 min

Rep. Soli said the decline of the railway system puts a lot of pressure on Nigerian roads thereby negatively impacting their lifespan.

The House of Representatives has called on the federal government to commence concession of the rail services to competent private investors.

It stressed the need for the government to adopt the option of concessioning the rail services to achieve value for money.

The call was contained in a motion on the “Need to Concession the Rail Services to include Operation and Management of the Railway System in Nigeria.”

According to the sponsor of the motion, Rep. Sada Soli (APC, Katsina) the railway system has performed poorly over time despite government efforts to ensure the efficiency of the system.

READ ALSO: Senate moves to rescue Nigeria’s rail projects from collapse

Soli argued that the decline of the railway system has negatively impacted the lifespan of Nigerian roads, as it is putting pressure on the road, and causing loss of lives and property.

“There has been a continuous decline of the system compared to contemporaries in the sector despite the huge investment to revive the rail transportation system.

“The importance of rail services play a pivotal role in the transportation sector of the country with an endless value chain which makes a difference in job creation, efficiency for services, infrastructure and economic growth. 

“But efforts to revive rail transport have failed. Poor management and complacency among railway system managers have led to the government exploring alternatives through the private sector,” he stated.

Consequently, the House directed the Committee on Land Transportation to liaise with the Federal Ministry of Transport to explore a framework for concessioning the rail services.

The committee will report back to the House in two weeks for further legislative action.

 




Beloved John

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