for abroad the rich and the poor use the same bus train and even live in the same condos..nigeria will continue and forever be a poo hole

You wee jus here som tinz our politicians say nd you will be wondering like pinky...

Only in nigeria

and when we tell gullible nigerians that their evil politicians never do anything with good intentions for the people, some goats will be shouting hater up and down. Una never see anything.

Its really sad o know that a minister actually said. This excuse is so unreasonable and sounds very stupid. God what have we done to deserve this kind of clueless idiots in power.

Lmao!

VellyG:
Its really sad o know that a minister actually said. This excuse is so unreasonable and sounds very stupid. God what have we done to deserve this kind of clueless idiots in power.

I ask God this everyday too

It means if you have anything that has 4 tyres even if its katapupu, you are a rich man.

APC government is really a mistake.

VellyG:
Its really sad o know that a minister actually said. This excuse is so unreasonable and sounds very stupid. God what have we done to deserve this kind of clueless idiots in power.

In a functioning nation, the government will reduce the fares so that the poor can afford a train ride. But hey, this is Nigeria isn't it ?

No shame at all

I'm least worried about the poor choice of words used by the minister in explaining the fare increase. What bothers me is the sustainability of these trains. Trains are expensive to maintain, so I'm not surprised at the quoted operating cost of N56m. What truly bothers me is that the trains rake in only a meagre N16m monthly and the government doesn't think its a problem.

Right from the first day the Abuja - Kaduna trains were launched and the minister arbitrarily announced a 'political fare' of N600, that was when I knew the trains were going to end up as another rotten government liability instead of assets. As long as the trains are going to be managed by government with the ridiculously subsidised political fares, they would continue to be a drain pipe which the government would have to budget for every year, and sooner than later, would become dead history like every other thing managed by government.

Speed trains provide a faster and a more comfortable means of transport. In most developed countries, trains rides are way more expensive that buses for obvious reasons but it seems the model Nigerians want to operate is the Bangladesh and Indian rural train models.

These new trains, if well managed and appropriate priced, are supposed to be a revenue earner for government. But with the current pricing template which is politically controlled (as opposed to economic), the end is definitely near.

All Amaechi is really doing here is admitting what I've always suspected: that the Kaduna to Abuja railway line makes no economic sense, especially as currently managed, which is why it is running at a deficit of more than 250% of revenues.

Given the distribution of population and economic activity within Nigeria, the stretch of railways which ought to have been the highest priority is the Lagos-Ibadan portion, followed by the next stretch to Ilorin, and even there, the priority ought to have been on freight traffic rather than passengers, as that would do far more to support farmers, manufacturers and others who have heavy, time-sensitive goods to get to market. In addition, moving heavy freight off the roads onto the railways would reduce the wear and tear on said roads, which would mean fewer potholes for the same amount of maintenance - not to mention fewer accidents involving heavy trailers and the like.

The only reason I can think of for prioritizing a Kaduna-Abuja line which has never made economic sense is the same one why a (now non-functioning) oil refinery was built in Kaduna so long ago - the old Nigerian vice of ethnic favoritism, playing to northerners desire to have "development" matching the south, even when said "development" has no prospect of being self-sustaining, and must therefore be subsidized in perpetuity.

FarahAideed:
Does Ameachi know the meaning of the word rich at at all? Nigeria under Buhari has 98 percent of its population living in poverty with an estimated 86 million living in abject extreme poverty the highest in the history of the human race till date ...Please where did Ameachi find these rich train users

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ladyF:
I'm still trying to wrap my head around the math.

Is it that they spend 56m per month as operating cost or that's the cost of purchase? And they only generate 16m per month? Which kain investment be this one

It's LadyF again.

My dear, I am worried as you are. Besides I thought we took a loan from China or there was some sort of a deal with China in which profits from the business would repay the money? If they are spending more than they are getting, how would they meet up to their own end of the deal?

What a logic from de lizard of ubima

omohayek:
All Amaechi is really doing here is admitting what I've always suspected: that the Kaduna to Abuja railway line makes no economic sense, especially as currently managed, which is why it is running at a deficit of more than 250% of revenues.

Given the distribution of population and economic activity within Nigeria, the stretch of railways which ought to have been the highest priority is the Lagos-Ibadan portion, followed by the next stretch to Ilorin, and even there, the priority ought to have been on freight traffic rather than passengers, as that would do far more to support farmers, manufacturers and others who have heavy, time-sensitive goods to get to market. In addition, moving heavy freight off the roads onto the railways would reduce the wear and tear on said roads, which would mean fewer potholes for the same amount of maintenance - not to mention fewer accidents involving heavy trailers and the like.

The only reason I can think of for prioritizing a Kaduna-Abuja line which has never made economic sense is the same one why a (now non-functioning) oil refinery was built in Kaduna so long ago - the old Nigerian vice of ethnic favoritism, playing to northerners desire to have "development" matching the south, even when said "development" has no prospect of being self-sustaining, and must therefore be subsidized in perpetuity.

Wow!

Is that true?

This goes to tell you that we have f**l as leaders, why can't you people have both Economic and Business class coaches?

When will all these rubbish stop. Our leaders are disgraceful. So the poor should no longer use the train rides because the rich use it more?

I think exceedingly du. mb politicians like Amaechi should be made to undergo compulsory 2 year business school before seeking executive positions.


Corporations/businesses don't increase prices because "the rich people use trains more than the poor".

Can you hear a foolish minister of garage tout talking.?

Apc stop talking the more you talk the more you ridicule yourself and people hate you the more.

What a silly talk* you increase fare because rich people used the train than poor people* Mr slowpoke Amaechi name one rich man that uses the train pls?

And so that the few poor people who use it will no longer be able to use it.

did is all he can come up with? dis man is sick

Hear this lying minister, thief

omohayek:
All Amaechi is really doing here is admitting what I've always suspected: that the Kaduna to Abuja railway line makes no economic sense, especially as currently managed, which is why it is running at a deficit of more than 250% of revenues.

Given the distribution of population and economic activity within Nigeria, the stretch of railways which ought to have been the highest priority is the Lagos-Ibadan portion, followed by the next stretch to Ilorin, and even there, the priority ought to have been on freight traffic rather than passengers, as that would do far more to support farmers, manufacturers and others who have heavy, time-sensitive goods to get to market. In addition, moving heavy freight off the roads onto the railways would reduce the wear and tear on said roads, which would mean fewer potholes for the same amount of maintenance - not to mention fewer accidents involving heavy trailers and the like.

The only reason I can think of for prioritizing a Kaduna-Abuja line which has never made economic sense is the same one why a (now non-functioning) oil refinery was built in Kaduna so long ago - the old Nigerian vice of ethnic favoritism, playing to northerners desire to have "development" matching the south, even when said "development" has no prospect of being self-sustaining, and must therefore be subsidized in perpetuity.

Contrary to your thoughts, the reason behind the 250% deficit isnt really about the viability of the route; it's rather a result of a very faulty pricing template which is dictated purely by politics instead of economics. I remember when the trains were first launched and Amaechi made an opening speech saying the originally planned fare of N900 had been slashed to N600. When politicians begin to arbitrarily fix prices like that without any recourse to economics, then you know the trains are definitely going to end up as another huge pile of government liabilities instead of assets.

Trains arent cheap to run or maintain, trains are faster, more comfortable, safer and overall, more luxurious than cars of public buses. In developed climes where trains are operated efficiently, they do not cost less than other means of ground transport. But of course with the way the new Nigerian trains are being operated, one already knows they are destined to fail. The 250% deficit doesnt come to me as a surprise; the same (or even worse) would still happen when the Lagos - Ibadan route is launched. The only saviour is for the government to get its hands off the trains and leave them to be run privately.

obailala:
Contrary to your thoughts, the reason behind the 250% deficit isnt really about the viability of the route; it's rather a result of a very faulty pricing template which is dictated purely by politics instead of economics. I remember when the trains were first launched and Amaechi made an opening speech saying the originally planned fare of N900 had been slashed to N600. When politicians begin to arbitrarily fix prices like that without any recourse to economics, then you know the trains are definitely going to end up as another huge pile of government liabilities instead of assets.

Trains arent cheap to run or maintain, trains are faster, more comfortable, safer and overall, more luxurious than cars of public buses. In developed climes where trains are operated efficiently, they do not cost less than other means of ground transport.

The question isn't whether trains are "cheap to run or maintain", the question is whether the likely traffic in the Kaduna-Abuja corridor was such as to ever justify sinking so much money into it, especially when there were other parts of the country where the same investment would almost certainly have brought greater returns, and the answer to this question is quite clear from Amaechi's statement and the reaction to it: the money spent on the Kaduna-Abuja commuter railway will never be recouped, and even with this price increase, the line will always need massive subsidies to keep running.

Even if the original price of N900 had been kept to, the line would still be requiring N5 in subsidy for every N3 in revenue, and that's even on the highly doubtful assumption that demand to travel on this line is totally inelastic (or, in plain English, that it would have had the same number of customers at N900/ticket as at N600/ticket). Given how loudly people are already howling, why should we believe that enough passengers would remain at N1,500 or whatever needed to be charged to reflect the true cost of the line? Would even that fare do more than just cover the operating costs? Because apart from those, there would still be the interest and capital on the construction loans from China to consider.

The brute fact about long-distance commuter trains in developed countries is that those who ride them pay far more on a monthly basis than the total disposable income of even upper-middle class Nigerians. As the fixed costs involved don't automatically become cheaper just because such lines are built in poor countries like Nigeria, only in the very wealthiest corners of such countries does it even begin to make sense, and even then only as an add-on to the main business of carrying freight at business rates. Nowhere in northern Nigeria meets such criteria.

visijo:
I enter train for free from apapa to Ogun state.. Very possible..

Oya, confess

You sat on top of the train shebi....

omohayek:

The question isn't whether trains are "cheap to run or maintain", the question is whether the likely traffic in the Kaduna-Abuja corridor was such as to ever justify sinking so much money into it, especially when there were other parts of the country where the same investment would almost certainly have brought greater returns, and the answer to this question is quite clear from Amaechi's statement and the reaction to it: the money spent on the Kaduna-Abuja commuter railway will never be recouped, and even with this price increase, the line will always need massive subsidies to keep running.

Even if the original price of N900 had been kept to, the line would still be requiring N5 in subsidy for every N3 in revenue, and that's even on the highly doubtful assumption that demand to travel on this line is totally inelastic (or, in plain English, that it would have had the same number of customers at N900/ticket as at N600/ticket). Given how loudly people are already howling, why should we believe that enough passengers would remain at N3,600 or whatever needed to be charged to reflect the true cost of the line?

The brute fact about long-distance commuter trains in developed countries is that those who ride them pay far more on a monthly basis than the total disposable income of even upper-middle class Nigerians. As the fixed costs involved don't automatically become cheaper just because such lines are built in poor countries like Nigeria, only in the very wealthiest corners of such countries does it even begin to make sense, and even then only as an add-on to the main business of carrying freight at business rates. Nowhere in northern Nigeria meets such criteria.

Like I said before, the Abuja - Kaduna route obviously isnt as as busy or as viable as the Lagos - Ibadan route, but it certainly isnt a non-viable route as you claim.

From what I hear, the trains are always packed full with commuters standing and some sitting on the floor. At that rate, even if the trains were in the Lagos route, they would still run at a massive loss, and that is purely because of the faulty pricing system, not necessarily because of the the route.

And of course, even the N900 price wouldn't be enough to break even; I doubt a commercial bus running from Abuja to Kaduna would even cost less than a thousand Naira.

Bros Amaechi I pray say thunder fire U soon! Idiotic slowpoke!!!

History repeating itself. In the past

One minister said 'Air Transport not for the poor'
Another said 'Telephone not for the poor'
Now this one has confirmed it too 'Rail transportation not for the poor'

We done sah!

Teewhy2:
What are the benefits of been a Nigerian especially if you are in the middle or lower class.
So they increase the fare because they believe the rich are the ones who use it the most, so what should be the case of people who struggle to pay the old fare or the ones that have been trying to raise some money just to have the experience of what traveling in a train looks like.
The leaders don't care that these poor people fix the road that leads to their house, the provide water for themselves, provide electricity, provide shelters but can't get good health care after their salaries had been heavily taxed.
Is been a Nigerian a bless in the opposite direction?

hmmm my brother common sense is not common especially since APC came to power.

Reportmusic:

If you go to Rigasa, you will see the big men pack their cars and use the railway and chase away the poor people.

“So since it’s big men that use the railway, we jerked up the prices

SOURCE
https://www.reportnaija.ng/2018/04/05/we-increased-train-fare-because-rich-people-use-it-more-than-the-poor-amaechi/

cc lalasticlala

I never knew people still reason this way!

So how do you single out the poor that wants to use the train

This guy go school at all

Amaechi the Judas Iscariot of Ubima, your zombeism is incurable