The Whole Investment in the Nigerian Rail Sector is a Waste—Dr. Segun Musa
Dr Segun Musa (left) President of MARAN, Godfrey Bivbere and MARAN Public Relations Officer, Sandra Chukwuyenre during the interactive session
—Says Priority Should Have Been on Cargo, Not Passenger Movement
By DAPO OLAWUNI
Dr. Segun Musa, Deputy National President of the National Association of Government Approved Freight Forwarders (NAGAFF), has expressed strong criticism of the Nigerian rail sector, stating that its investment has been largely wasted due to poor planning and misplaced priorities.
Recall that in 2017, the Federal Government had secured $7.5 billion loan from a Chinese bank for the construction of standard rail gauge from Lagos to Kano.
Former Minister of Transportation, Rotimi Amaechi had explained then, that $1. 4 billion of the loan was for the construction of the rail gauge from Lagos to Ibadan, while $6. 1 billion would be used on Ibadan–Ilorin–Minna-Kaduna– Kano line.
However, speaking at a roundtable organised by the Maritime Reporters Association of Nigeria (MARAN) on Tuesday, Dr Musa knocked the government for making a mess with the huge loan which Nigeria borrowed from China to construct rail system.
In his analysis, Musa emphasized that the country’s transportation systems, particularly rail, should have focused on cargo movement rather than passenger services to truly impact the economy.
“Had we prioritized cargo transport, the income generated would have repaid the investment by now. Instead, the sector remains financially unsustainable, as passenger services cannot generate the required revenue. Poor feasibility studies and a lack of long-term planning continue to plague the rail sector” he said
According to him “Effectively driving the economy requires an efficient transport system. Without one, no economy can truly thrive. For over 20 years, we have largely ignored the transportation sector’s impact on our economy, relying on outdated or ineffective policies.”
He argued that the sector’s management by the Nigerian Railway Corporation (NRC) has been marred by short-sighted decisions, stating that officials have been conducting “litmus tests” with strategies that have already failed in other countries.
Musa pinpointed road transport as one of the most unregulated and chaotic sectors. “Road transport is the most unorganized sector with no proper regulation. Anyone with enough money can buy trucks, buses, or cars and put them on the road with no standardization or oversight,” he said.
He explained that this disorganization leads to constant gridlock, slowing down trade and hampering economic growth.
While road transport remains unregulated, Musa also took aim at the aviation sector, which he described as over-regulated but poorly managed. “Despite being the most regulated sector, we’ve had the wrong people in charge, making it difficult to run the sector efficiently,” Musa observed. Reflecting on past incidents, he added, “During the Obasanjo administration, when air crashes were frequent, stakeholders admitted to cutting corners. How is it possible for the most regulated sector to be rife with corner-cutting? The issue stems from the government’s failure to address the financial and operational needs of the aviation industry.”
However, Musa reserved his harshest critique for the rail sector. He recounted the initial efforts to revamp the rail system under Obasanjo’s presidency, with an emphasis on moving freight rather than passengers.
“We proposed focusing on cargo transport, as the passenger sector didn’t have the potential to generate substantial income,” Musa said. But instead of prioritizing freight, resources were funneled into upgrading passenger comforts.
“The result? The rail system failed once again, and today, much of the investment in the rail sector has gone to waste. Had we prioritized cargo transport, the income generated would have repaid the investment by now,” Musa stated, expressing frustration over the government’s lack of foresight.
Musa concluded by highlighting the persistent issues with the rail system. “Passenger services cannot generate the revenue we need to sustain the rail sector. Poor feasibility studies and a lack of long-term planning continue to plague the industry,” he lamented.
Dr. Musa’s insights call for a fundamental rethinking of Nigeria’s transportation strategy, particularly in the rail sector, where he believes focusing on cargo rather than passengers would offer the best chance of economic progress.
