₦airaland Forum

By Tope Fasua | Published Date Jun 2, 2019 6:37 AM

This is the final part of my little intervention on the rail renaissance in Nigeria. I wrote this while this column was in hiatus, before the elections. Necessity has caused the Minister of Transport to make a few changes and I haven’t used the train since that time. Things got worse at a point and arrests were made. Chaos probably still ensues. All of Nigeria’s big men now use the train, as the Chairman of UBEC and his daughter were once kidnapped on the road and his driver shot dead. I am sad that we are abandoning a very important road to bandits. Not even the novelty of having trains should cause us to do that. Here are my suggestions on improvements:

The issues for improvement

1. It is evident that there is leadership failure right from the Minister of Transport. With the level of exposure he and his executive colleagues have to how things are done abroad, he should not leave our train stations in such a disorganized state

2. Using the broken-windows theory analogy, those stations can only descend into further chaos until our rail system becomes crime and filth-ridden and any self-respecting Nigerian will avoid them like the plague, and the entire system will collapse

3. Price – Passengers will not like this, but the service is damn too cheap. A First Class ticket with full air-conditioning and the promise of a very smooth ride for two hours flat from Abuja to Kaduna, is N2,500. N1,500 is the price for an economy ticket. This is unnecessary subsidy at this age and time. A bus ride over very bumpy road, without air-conditioning and no respect for passengers’ comfort is also N1,500.  The other day, Minister Rotimi Amaechi stated that they cannot increase prices because they don’t want people to complain. He said they spend N56m monthly on each train, but only recover N16million. Invariably our politicians see train services as another avenue for pleasing constituencies? I saw at least two billionaires in the first class cabin, men who could buy the entire train network. I believe it is also not okay for people to take advantage of the cheapness of the service because that is how we kill everything in Nigeria. We must be fair to our country. We must also know that anywhere there is undue advantage like that, something bigger and more sinister is going down in high places. For now, the train service is almost becoming a ‘man-knows-man’ affair

4. Loans – Meanwhile the entire rail system is built on Chinese loans which will have to be paid back someday, whether we like it or not. Perhaps we are setting up the entire rail system to be bought over on the cheap by the Chinese, otherwise we would be struggling to rev up the cash flow so that we can begin to put something aside for payback day. The financial management of the rail sector in Nigeria is a sham, from a mile away.

5. Security – The security of the train system – from what I observed – is non-existent. The boys that we saw arrested by the police, adamantly sat on the rail tracks and forced the driver to stop. Curiously they waited and were accosted by the police. The train could have crushed them and that will be a huge scandal. There was also another news item where Minister Amaechi said that the trains could not go faster because they will crush cows. Now, with the defiance those boys showed to the train, it may be a matter of time before criminals get daring. Thankfully there are a handful of policemen on each train but we don’t have to experiment with our own era of train robberies – especially now that we are going national with the service. Also, what about terrorism? Anyone can bring in any explosives into Nigerian trains presently. The people who set up the systems seem to have become disinterested in the entire system. No system is perfect, but we should have tried to replicate what we see abroad – especially in view of our security challenges.

6. Private sector – Nigeria Railway Commission is the best example that government has no business doing business. Train service is business. Government can see the opening up of rail network as a national integration strategy but this does not justify running a moribund, decadent, and fraudulent system. This thing should be turned over to the private sector. We know that the government does not trust itself around money, but a sensible government should be concessioning the entire system for the next ten years under firm agreements and collecting its proceeds upfront at a good price. This way, even the customers will get a better experience.

7. Uptake – The uptake of the service is a clear indication of the business potentials. It is as if the government did not expect that people will show up in these numbers. If this is the case, three things can happen. One, fares should go up. Two, more train frequencies is a necessity. Three, with the number of people trying to get black market train tickets, we should be having departures every half an hour, with capacity for more frequency. This will mean investment in more trains or addition of more carriages/cabins on existing trains.

8. Nationwide potential – Train services seem to be the next thing Nigerians are waiting for. It’s a shame that Fashola and Amaechi couldn’t complete what they started in their states. These projects can transform the outlook of those states. More effort needs to be added, and more collaboration with private sector too. However, good care is needed. A few days ago, a train derailed at Ashade Market, Agege, killing one person and injuring several. From that incidence, it was evident that no one checks the fidelity of the tracks. This is another way jobs are created abroad. Every inch of a train track must be inspected every other day. Yet we say there are no jobs in Nigeria – because of blind corruption and greed which prevents our leaders from giving jobs out to those who need them. We cannot mess around with train tracks.

9. Accounting – It is evident that the authorities are not interested at all in the accountability aspect of things. It is possible that most or all of the cash proceeds of the train services are treated as slush funds (after all it does not cover the cost at all). The entire laxity around affairs is palpable. If managers don’t show seriousness around money, they can’t show seriousness around anything else.

10. Ambience – Do we believe we cannot strive towards excellence? Why would we start out in anything, with a view to achieving mediocre results? What stopped us from building train stations of international standards that every Nigerian will look forward to? It can only be because we don’t think our people deserve good things, or that they can’t handle it.

By and large, my experience with our rail system shows we have a serious leadership problem, no less. The people have no fault in this, but we aren’t properly led. Nigerians will do themselves a favour to get new leaders with a more progressive, more respectful vision for all, a sense of urgency, an unbendable resolve to achieve excellence, and attention to details.

Source: https://www.dailytrust.com.ng/the-unsustainable-operation-of-nigerias-rail-sectors-11.html

Front Page: Lalasticlala

I like ths series the author wrote. He was very thorough about pointing out flaws in passenger rail lines. I hope they take his advice.

NRC should be raising prices for these tickets. If people can afford these black market tickets that means it's too cheap. NRC should attempt to break even on passenger rail and profit cargo.

They should be concessioning standard guage rails along with narrow gauge lines. If they're affraid of raising prices let concessionaire do it. Alot of the funny business will also disappear.

talk is cheap and its cost is equivalent to nothing except the talk is an offence

Blue3k2:
Source: https://www.dailytrust.com.ng/the-unsustainable-operation-of-nigerias-rail-sectors-11.html

Reading this piece gladdens and saddens my heart; it gladdens my heart that someone has been able to comprehensively and succintly capture my exact thoughts about the Nigeria's new rail system, and it saddens my heart that instead of being a blessing for Nigeria, the new rail system has become another massive liability for government which of course like every other, will soon die a natural death and rot away. The day I knew it was over for the so called new rail system was when it was first commissioned and Amaechi considering only politics (zero economic consideration), arbitrarily fixed and announced ticket prices.

Firstly I've always argued that the train fares are damn too cheap; train services are a business all over the developed world which gives revenue to serious governments. But in Nigeria, even before it starts, the train tickets are already being subsidised 90% by government. Nigeria claims to be a capitalist society yet we run a welfarist state amidst the almost non-existent govt income. Trains which should give revenue to govt and payback govt loans spent in building them have now become government liabilities and conduit pipe of which funds have to be budgeted by govt from oil revenue to maintain them - Sickening!

In order to get the rail system to work, the government should never be allowed to come anywhere close to it's management. From the day it was commissioned, it should have been concessioned to private ventures which will operate and maintain the system. In the UK today, the rail sector is a multibillion dollar industry which is 100% managed by the private sector. Different private companies own and manage the tracks, other companies manage the stations and different companies own the trains. In the UK, trains are the most expensive mode of transport, train tickets are actually more expensive than flight tickets (even though I agree this might be absurd but it is what it is).

How can it cost N1500 to board a rickety bus through the pothole riddled, bandit filled Abuja - Kaduna road, yet it also cost the same amount to board a train which gets you there faster and in more luxury, style, comfort and safety? The Lagos Ibadan rail will soon be completed, if the govt is serious, it should never fix any price but just hand over the operation and pricing to private concessionnaires; that will be the only guarantee that the rail system will survive the next 10 years.

obailala:
Reading this piece gladdens and saddens my heart; it gladdens my heart that someone has been able to comprehensively and succintly capture my exact thoughts about the Nigeria's new rail system, and it saddens my heart that instead of being a blessing for Nigeria, the new rail system has become another massive liability for government which of course like every other, will soon die a natural death and rot away. The day I knew it was over for the so called new rail system was when it was first commissioned and Amaechi considering only politics (zero economic consideration), arbitrarily fixed and announced ticket prices.

Firstly I've always argued that the train fares are damn too cheap; train services are a business all over the developed world which gives revenue to serious governments. But in Nigeria, even before it starts, the train tickets are already being subsidised 90% by government. Nigeria claims to be a capitalist society yet we run a welfarist state amidst the almost non-existent govt income. Trains which should give revenue to govt and payback govt loans spent in building them have now become government liabilities and conduit pipe of which funds have to be budgeted by govt from oil revenue to maintain them - Sickening!

In order to get the rail system to work, the government should never be allowed to come anywhere close to it's management. From the day it was commissioned, it should have been concessioned to private ventures which will operate and maintain the system. In the UK today, the rail sector is a multibillion dollar industry which is 100% managed by the private sector. Different private companies own and manage the tracks, other companies manage the stations and different companies own the trains. In the UK, trains are the most expensive mode of transport, train tickets are actually more expensive than flight tickets (even though I agree this might be absurd but it is what it is).

How can it cost N1500 to board a rickety bus through the pothole riddled, bandit filled Abuja - Kaduna road, yet it also cost the same amount to board a train which gets you there faster and in more luxury, style, comfort and safety? The Lagos Ibadan rail will soon be completed, if the govt is serious, it should never fix any price but just hand over the operation and pricing to private concessionnaires; that will be the only guarantee that the rail system will survive the next 10 years.

You and Tope Fasua have captured exactly my thoughts on this topic. What was the point of taking out massive Chinese loans with undisclosed terms, only to run the railways built with said loans in the usual ridiculous Nigerian manner? Why not leave their management in the hands of capable private operators with substantial experience, letting them charge enough to be in a position to reinvest, and giving them the freedom to prioritize freight traffic for business over passengers, if need be? The whole thing is sheer madness.

**spreads mat** **cleans ear with cotton swab** .make I pitch my tent here!
na intellectual thread and no one should come and spew trash for here o!

omohayek:
You and Tope Fasua have captured exactly my thoughts on this topic. What was the point of taking out massive Chinese loans with undisclosed terms, only to run the railways built with said loans in the usual ridiculous Nigerian manner? Why not leave their management in the hands of capable private operators with substantial experience, letting them charge enough to be in a position to reinvest, and giving them the freedom to prioritize freight traffic for business over passengers, if need be? The whole thing is sheer madness.

It weakens me totally whenever I think about it. The govt just took large loans to create a massive liability and Nigerians are smiling and dancing about it. Ticket prices are arbitrarily fixed purely based on political expediency without any economic considerations.

What even baffles me most is how the system is currently running at over 70% loss every month and no one both in and out of government sees anything wrong with this anomaly. Reminds me of the song by Asa, "there is fire on the mountain but nobody seems to be on the run"

Just to add to points above about revenue would be higher if they weren't subsidizing tickets. Check the stats from 2011 to 2019. Nigeria passenger traffic is down over 1 million but revenue is higher. The government should be rushing to add more coaches.

I remember reading alot of these new rail lines didnt even have cargo operations ready. You can notice nigeria is slightly below its high in 2011.

obailala:
Nigeria claims to be a capitalist society yet we run a welfarist state amidst the almost non-existent govt income. Trains which should give revenue to govt and payback govt loans spent in building them have now become government liabilities and conduit pipe of which funds have to be budgeted by govt from oil revenue to maintain them - Sickening!

Nigeria has a knack of messing up basics. Lol they literally give free rides for a month everytime they open new rail line. They subsidize oil national ID, and plan to subsize rice. I believe this is partly why we also get poor service delivery. Speaking of delivery why dont they deliver pvc and drivers licenses instead brosdcasting every so often x amount of cards are uncollected.

Bump

Blue3k2:
I like ths series the author wrote. He was very thorough about pointing out flaws in passenger rail lines. I hope they take his advice.

NRC should be raising prices for these tickets. If people can afford these black market tickets that means it's too cheap. NRC should attempt to break even on passenger rail and profit cargo.

They should be concessioning standard guage rails along with narrow gauge lines. If they're affraid of raising prices let concessionaire do it. Alot of the funny business will also disappear.

NRC does NOT need to increase the cost of their train tickets, nor do they need to hike the fare. All they need is to increase the frequency of their passenger service.

In other countries, the trains depart every hour and arrive on time. In Nigeria, most rail passenger services only run twice or thrice a day. Is that how to make money?

What strategies do they have to increase cargo services? Ask NRC. They have none. Train services all over the world, are an affordable and competitive way to transport people and cargo, over long distances.

Not only that, they should explore better sources of fuel. Using diesel to power trains is very expensive. The option of using natural gas turbines, or using mini IPP plants providing dedicated electricity to power the trains, could also be explored.

Finally, railway advertising is a money spinner in many places. But in Nigeria, NRC has failed woefully to monetise their rail stations and open spaces for advertising purposes.

Blue3k2:
Just to add to points above about revenue would be higher if they weren't subsidizing tickets. Check the stats from 2011 to 2019. Nigeria passenger traffic is down over 1 million but revenue is higher. The government should be rushing to add more coaches.

I remember reading alot of these new rail lines didnt even have cargo operations ready. You can notice nigeria is slightly below its high in 2011.

Nigeria has a knack of messing up basics. Lol they literally give free rides for a month everytime they open new rail line. They subsidize oil national ID, and plan to subsize rice. I believe this is partly why we also get poor service delivery. Speaking of delivery why dont they deliver pvc and drivers licenses instead brosdcasting every so often x amount of cards are uncollected.

Pls stop this excuse of 'subsidising' tickets. The coaches are NOT even doing enough trips to justify the cost of operations.

How can you expect to make money by running only 3 trips per day, to and fro? When they should be doing multiple trips to make money to cover their costs?

Also, the NRC should allow passengers to buy rail tickets using their debit cards and through online transfer. Half of the problem, is that sales from tickets are done in cash across the counter , and a lot of it ends up in private pockets. Even if you increase fares, it would not solve the problem. That is why they are recording low revenues. There is too much waste.

obailala:
It weakens me totally whenever I think about it. The govt just took large loans to create a massive liability and Nigerians are smiling and dancing about it. Ticket prices are arbitrarily fixed purely based on political expediency without any economic considerations.

What even baffles me most is how the system is currently running at over 70% loss every month and no one both in and out of government sees anything wrong with this anomaly. Reminds me of the song by Asa, "there is fire on the mountain but nobody seems to be on the run"

They are running at 70% loss, because there are too many loopholes within the system. There are cartels run by NRC staff that buy up tickets only to resell at inflated prices. Some of them corner the cash proceeds from ticket sales.

How many train stations in Nigeria allow passengers to buy tickets, using their debit cards through POS machines? Very few. I have never seen a POS terminal at Iddo terminus or Ebute-Metta junction.

When was the last time you saw a rail advert or notice showing arrival and departure times, in any Nigerian city? Where are the customer service lines, through which prospective passengers can get info on train services? They do not exist.

Before advocating that rail fares should be hiked, the loopholes and wasteful sources need to be plugged.

laudate:
NRC does NOT need to increase the cost of their train tickets, nor do they need to hike the fare. All they need is to increase the frequency of their passenger service.

In other countries, the trains depart every hour and arrive on time. In Nigeria, most rail passenger services only run twice or thrice a day. Is that how to make money?

Not only that, they should explore better sources of fuel. Using diesel to power trains is expensive. The option of using natural gas turbines, or using mini IPP plants providing dedicated electricity to power the trains, could also be explored.

Finally, railway advertising is a money spinner in many places. But in Nigeria, NRC has failed woefully to monetise their rail stations and open spaces for advertising purposes.

I disagree on thie ticket price being too low. My opinion is simply based on fact people can afford the scalpers tickets corrupt NRC employees sell. Then the price for car and train ride similar as stated in article.

I do agree with you on frequency of rides. They're literally leaving money on table. I can see your point about type of trains. They can always purchase some from General Electric or someone. As I remember reading most of these stations are built without connecting to grid in mind they do months after. I doubt them on electric trains.

The advertising revenue isn't anything to write about and down 70% year over year as current stats show. I doubt advertisers are interested judging by this severe decline. Compared to the other sources of income its never been much.

Blue3k2:
I disagree on thie ticket price being too low. My opinion is simply based on fact people can afford the scalpers tickets corrupt NRC employees sell. Then the price for car and train ride similar as stated in article.

I do agree with you on frequency of rides. They're literally leaving money on table. I can see your point about type of trains. They can always purchase some from General Electric or someone. As I remember reading most of these stations are built without connecting to grid in mind they do months after. I doubt them on electric trains.

The advertising revenue isn't anything to write about and down 70% year over year as current stats show. I doubt advertisers are interested judging by this severe decline. Compared to the other sources of income its never been much.

I believe ticket prices are not too low. We need to get people off the roads, and into the trains. Making the price too high will defeat the purpose.

Advertising revenue in rail stations in Nigeria and even within the coaches, has NOT been explored in Nigeria. So how can you say it is nothing to write home about, when it has not even been tried in Nigeria? Don't use advertising revenue abroad, as a criteria.

Advertising on billboards along our major highways, costs millions already. Why can't NRC go after some of that revenue, by opening up their stations to relevant advertisers?

NRC does not even have an articulate advertising strategy to attract advertisers, into their network.

laudate:
Advertising revenue in rail stations in Nigeria and even within the coaches, has NOT been explored in Nigeria. So how can you say it is nothing to write home about, when it has not even been tried in Nigeria? Don't use advertising revenue abroad, as a criteria.

Advertising on billboards along our major highways, costs millions already. Why can't NRC go after some of that revenue, by opening up their stations to relevant advertisers?

I look at other income was informed it includes advertising. The huge drop tells me its nothing significant compared to passenger and cargo. Im not against them making cash. I though ads would be inside train station themselves instead of coaches.