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NIGERIAN ECONOMY........$6.7billion Ibadan - Kaduna Rail - Huge Project, Lean Potential

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The Federal Executive Council, FEC, has approved a memo presented by the Minister of Transportation, Rotimi Amaechi, for the construction of a rail line from Ibadan, Oyo State, to Kaduna.
Mr. Amaechi, who addressed State House correspondents after the meeting held inside the council chamber of the presidential villa, said the rail project “will cost $6.7 billion, with a completion period of three years.”
....Source Premium Times


FIRE I reflected briefly on the newly approved $6.7billion Ibadan-Kaduna railway line at this time, when we are unable to refine our own crude oil into petrol.  The Petroleum Minister had promised 2019 as the deadline year for Nigeria to stop fuel importation, but only God knows what plans the ministry has put on ground for this goal to be achieved.

The railway project is good, but how will the project positively impact on Nigerians and the economy.  The dollar amount is huge and that's the initial estimate.  It is after the project is completed, before the structure to run the rail service will begin, which itself will require further capital injection.  

The way railways are operated in Nigeria, it is a social project that will hardly ever repay its capital outlay.  So that amount is as good as gone, though people around the project line will cheer the project, it may never be able to repay the amount borrowed for this project.

Let us not deceive ourselves that the nation is rich and can take on any project at any time.  The light problem still persist, fuel importation continues and yet we are starting a fresh gigantic long-term project...

In Europe, many households and companies now use electric cars for months without any need for petrol and yet we are still paying leap service to diversification of our economy. Is this how we will lead Africa?  

It will be interesting to see how this project will impact on the economy in the next few years.  

APC, should please help lift the economy and create opportunity and jobs for Nigerians.  Give us high impact projects that will diversify and turn the economy around.

This is my personal opinion, expressed without any prejudice. Feel free to include your own, lets build a better Nigeria! 


FIRE...

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