- 11 Years After, Abuja Light Rail Takes Off
Last Thursday’s inauguration of the Abuja Light rail was a landmark. It was the first intra-city standard gauge shuttle service by any government, a promise fulfilled by the Muhammadu Buhari-led administration.
It is no fluke that the rail system was kicked off in Abuja, which, according to the National Population Commission (NPC), is the fourth most populous city in Nigeria, after Lagos, Kano and Ibadan, growing at the rate of 7.1 percent, that could overtake them by the turn of the decade.
With this growth index, it is not out of place to have competing modes of transport like the urban mass transit, taxis, tricycles, popularly called Keke NAPEP,l and motorcycles. The modern railway system would further add to the mix, making livability index of the city more intriguing.
By design Abuja, ministries, departments and agencies (MDAs), including most private businesses, are concentrated in the Central Business Area and the Central Business District.
Workers go from satellite towns, such as Kubwa, Gwagwa, Kuje, Mpape, Kasrshi, Gwagwalada, Suleja, Kwali, Mararaba, and Karu to the city centre daily. The result is a congested city centre that has distorted the city’s original plan.
To solve the problem and reduce travel time of about 40 minutes from any of the satellite towns to the city, the light rail system was conceived as apart of the city’s masterplan in 1977. It was intended to form the spine of public transport system in the Federal Capital Territory (FCT).
The Abuja rail mass transit system was designed primarily to move people within and between the satellite towns.
The commuter rail is, therefore, crucial for sustainable integration of the satellite towns into the metropolitan transport.
To facilitate the development of the rail mass transit, it was phased based on demand and financial resources. The system was designed to integrate with the National Rail Network. Divided into six lots, and has a length of 290 kilometres.
They are Lot 1A (23km) from Idu to Kubwa, and 1B (26.78km) from Ring Road I through to Gwagwa. Lot 2: from Gwagwa via interchange centre to Nyanya/Karu (51km); Lot 3: From Transportation Centre via Idu Industrial Zone to Nnamdi Azikwe International Airport (27.245km); Lot 4:From Kuje Satellite town to Karshi Satellite town with the remaining legs of the Transit way line 2; (90km) Lot 5:From Kubwa via Bwari to Suleja (31km) and Lot 6: From Airport via Kuje and Gwagwalada to Dobi (43km).
The project was awarded to CCECC Nigeria Limited on May 23, 2007, but work started two years later. The revised contract sum was $823,540,545.87 for the double track rail line. Though the original date of completion was May 28, 2011, the contract was revised again on the August 24, 2014 with the completion date W slated for last December 31.
The Lots 1A and 3 comprises 1,435km gauge, 12 stations, 50 culverts 13 railway bridges, 25 flyover bridges, rolling stock depot comprises of 21 buildings, namely: Operation Control Centre, Training Centre, Maintenance Crew Staff quarters, Comprehensive Maintenance building, oil pump room, waste water treatment room, and deep well pump room.
The segments, which were inaugurated were Lots 1A and 3, covered only 45.245km. This shows that only 16 percent of the rail network has been covered.
The administration, which met the project at 63 percent completion, lauded itself for completing it within the revised time frame, though with about six month’s extension.
FCT Transportation Secretary, Kayode Opeifa said: “There should be no politics with this. This project took eight years to get to 63 per cent; it was almost becoming an elephant project if not for the seriousness and commitment of the government to finish it. When oil was selling at N110, they never finished it. It is not about politics. While we commended the past government for initiating and driving it, the truth is that the past administration had all the opportunities in the world to complete this project, but it was not properly managed. We don’t have time for politics and what is important is that we met it at 63 per cent after eight years and we completed it within three years.”
Inaugurating the project, a very pleased President Buhari described its completion as a dream come true. He praised the Minister of FCT for a job well done.
He said: “This accomplishment clearly demonstrates our commitment to addressing critical infrastructural projects and keeping with the ideals of the Change Agenda to ensure prudence in the management of public resources, value for money considering the huge investments in this project. Transportation is the live wire of any city. I am very optimistic that a modern rail service would bring about a boost to the FCT economy and greatly enhance social life. I am aware that what we have on ground today are coaches meant to provide skeletal services as we await the main set of the rolling stock for full operations.
“I have been briefed on the outcome of the Ministers of FCT and Finance’s recent visit to China, during which the MoUs and agree-ments for the procurements of the main rolling stock were signed. May I, therefore, assure Nigerians of Federal Government’s continued support for all the negotiations towards the realisation of the Abuja Light Rail system. What we have in the Federal Capital Territory is another evidence that we are a government that delivers on its promises. I have observed keenly other milestones that this Administration has achieved, especially in the areas of education, public utilities and infrastructure development.
“I commend the efforts of the Minister of FCT as well as the support and patience of the residents, while we are working to improve the city’s transportation service. I am thankful to the Government and people of China for their investment in the Nigerian economy. I commend the CCECC Limited – the contracting firm, for the quality of work and timely delivery of this project.
“Let me place on record the Nigerian government’s appreciation to the Government of China and the EXIM Bank of China for their support on this and many other projects being executed in the country. This gesture further cements the existing cordial relations and developmental partnership between Nigeria and the People’s Republic of China. I would also like to thank our Nigerian consultants, Messrs Transurb Technirail Consult Limited for their services.”
The President urged the management of the rail services to, “ensure efficient operations, good customer service and maintenance culture of the rail.”
Opeifa also hinted that the rail system would provide 100,000 direct or indirect jobs for Abuja residents. He said in line with international best practices, the FCTA administration was determined to ensure that the rail system was affordable to residents. He maintained that the administration would make the 12 rail stations attractive to users to earn more money, especially for those living around the stations. As part of the attraction, passengers, he said, would enjoy two weeks of free ride on the train.
On the next phase of the project, the FCT Minister Muhammad Bello said the Federal Executive Council (FEC) had approved $1.3 billion for the construction of a standard gauge, which would cover 32.54 km from Nnamdi Azikiwe Expressway(Garki Area l) – Gwagwa – Gbazango Station to Kubwa.
“The Federal Executive Council approved the project in 2017 for construction by CCECC at a cost of US$1.3 billion. We hope that the Minister of Finance would consider putting this key project in the next borrowing plans, we hope that the Minister of Budget and National Planning would agree to it, and that the National Assembly would approved it and that China Exim Bank would fund it as a mark of goodwill for the cordial relationship between our two countries,” Bello asserted.
Though he could not ascertain when the entire rail projects would be completed, Bello expresses the hope that his successors in office would give priority to rail system as a critical means of mass transportation.
He said the FCT Administration has concluded with Exim Bank of China for the supply of coaches, including their maintenance for three years at a cost of $194 million. The coach presently used has the capacity to carry 390 passengers.
He said the Exim Bank of China would fund the project with $157 million or 85 per cent, while FCTA would bring in a counterpart fund of $37million (15 per cent).
Warren Buffet to Give Out Another $2.9bn, Total Donations Now $37bn
Warren Buffet Gives Away $2.9bn, Total Donations Now $37bn
Oracle of Omaha, Warren Buffet, has announced his yearly charitable donations to the five philanthropies he picked to donate most of his fortune to.
The billionaire plans to give out 15.9 million class B shares of Berkshire Hathaway worth $2.9 billion to the five philanthropies. This will bring his total philanthropic donations to $37 billion since 2006.
Buffet, who has promised to give away about 99 percent of his fortune, still hold 248,734 Class A shares of Berkshire valued at around $67.5 billion.
However, before he began given out his shares, Oracle of Omaha held 474,998 Class A shares of Berkshire, which would have worth about $129 billion as of today.
UBA Appoints Ayoku Liadi, Oliver Alawuba as Deputy Managing Directors
UBA Appoints New Deputy Managing Directors for its Growing Business
United Bank for Africa Plc (UBA) announced the appointments of Ayoku Liadi and Oliver Alawuba as the Deputy Managing Directors in charge of UBA’s Nigeria and Africa businesses, respectively.
In a statement issued by the bank and released on the Exchange’s website, the bank said the creation of the new positions represents further strategic recognition of the bank’s pan-African business growth.
The lender explained that its pan-African business now accounts for over 40 percent of its Group revenue, while Nigeria remains the bank’s largest market.
According to the bank, the new Deputy Managing Directors will report directly to the Group Chief Executive Officer (CEO), Kennedy Uzoka.
Speaking on the new appointments, Tony O. Elumelu, Group Chairman, said “In 2005, we set out our pan-African vision. Fifteen years later, we are present in 20 African countries, serving over 20 million clients, leveraging our service culture and technology platform, to provide an integrated and seamless customer offering across the continent.
“In Africa, we lead in innovation and service, whilst our International Business, operating from New York, Paris and London, provides global and African clients access to treasury, trade finance and corporate banking products, uniquely tailored to the African opportunity. These senior appointments represent our commitment to optimise our management structure to best serve our clients and drive our business success.”
West African Consumer Sentiment Reflects Global Uncertainty
Ghanaian Consumer Confidence Declines by 15 Points
Lagos, 7 July 2020 – Against the backdrop of the unprecedented COVID-19 pandemic, West African consumer sentiment has experienced a sharp drop in the Nielsen Consumer Confidence Index (CCI) for Quarter 2, 2020. Ghana’s figures show a substantial decrease of 15 points to 104, while Nigeria’s CCI has decreased by 14 points to 108.
Looking at Ghana’s performance, Yannick Nkembe, Market Lead for Nielsen West Africa Expanded Market, comments; “The latest consumer sentiments reflect the market reality. With the global pandemic affecting the economy and causing general uncertainty all around, consumers have readjusted their confidence levels and are also more cautious with their spend.”
Ghanaians have significantly dropped their outlook around their job prospects, with less than half (45%) saying they will be good or excellent in the next 12 months – a 16 point decrease from the previous quarter. In terms of the state of their personal finances over the next 12 months, 60% say they are excellent or good, again a substantial 16 point drop from the previous quarter.
Ghanaians propensity to purchase has also seen a considerable decrease quarter on quarter, with the number of those who think now is a good or excellent time to purchase what they want or need drop from 52% to 33% in the second quarter.
Only 43% of Ghanaians say they have spare cash, down 13 points from the previous quarter. Once they meet their essential living expenses, the highest number of consumers (74%) put their spare cash into savings, followed by 73% on home improvements/decorating and 56% who would invest in stocks and mutual funds. One of the most significant drops in discretionary spending is on holidays down from 58% to 27% – a clear indicator of consumers’ mindset shift away from non-essential services and their desire to avoid unnecessary travel.
When asked whether they had changed their spending to save on household expenses compared to this time last year, 75% said yes, up seven points from the previous quarter. To reduce expenses, 53% said they spent less on new clothes, 52% on out of home entertainment, with the same figure deferring on the replacement of major household items.
When looking at the real-life factors that are affecting their outlook, the top consumer concerns over the next twelve months were increasing food prices (29%), followed by work/life balance (23%) and their children’s education (22%). Nkembe comments; “Ghana has previously experienced strong business prospects and with the relatively earlier easing of restrictions to stimulate its economy, recovery in Ghana is likely to rebound sooner. We expect consumers to revert to previous consumption behaviours, although some of their attitudes will have fundamentally or permanently changed post the pandemic.”
Subdued sentiment in Nigeria
In tandem with the rest of the world, Nigeria’s CCI figure dropped by 14 points. Commenting on the reasons for this, Nielsen Nigeria MD Ged Nooy says; “As Africa’s largest economy and the largest exporter of oil, Nigeria’s economy was already under immense pressure before the COVID-19 lockdown due to the collapse in international oil prices. Based on the additional economic pressure as a result of the COVID-19 pandemic, Nigeria, therefore, instituted a fairly early easing of its 5-week lockdown in early May due to the adverse financial effects on its economy and population.”
Looking at the consumer picture during this time (Quarter 2, 2020) Nigerian job prospects declined with less than half viewing them as excellent or good, a 14 point drop from the previous quarter. Nigerians’ sentiment around the state of their personal finances also showed a decline with 59% who think they will be excellent or good over the next year, having decreased 19 points from the previous quarter. Immediate-spending intentions also declined, with only a third of the respondents saying “now is a good or excellent time to purchase” what they want or need, a 14 point drop from the previous quarter.
In terms of whether Nigerians have spare cash to spend, 32% said yes, versus 50% in the previous quarter. When we look at Nigerians spending priorities, once they have met their essential living expenses, 81% said they would put their spare cash into savings, 73% said home improvements and decorating and 66% would invest in shares/mutual funds.
Seventy-six per cent of Nigerians said they had changed their spending to save on household expenses compared to this time last year. To reduce expenses, 67% said they had delayed the replacement of major household items (a 10 point increase on the previous quarter). Sixty-four per cent said they would spend less on new clothes and 56% said less out of home entertainment – both of which are understandable given ongoing restricted living patterns.
In the next 12 months, Nigerians said their top concern would be attaining a work/life balance (31%), which has seen the biggest increase of eight points compared to the previous quarter. This is followed by increasing food prices (23%) and concerns over the economy (19%).
Elaborating on these results, Nooy says; “Economic recovery has been sluggish and will remain severely constricted due to the oil price crash amidst and beyond the pandemic. For Nigeria’s manufacturing and retail sectors to rebound will require a sharp focus, as trade opportunities and execution remains severely constrained, having further deteriorated during the partially restricted living period.”
News6 days ago
Fire Guts Central Bank of Nigeria Office in Gombe
Forex3 days ago
CBN Starts Using N380/$ Official Rate, Expects to Make it Official Soon
Stock Market3 days ago
Flour Mills, Dangote Cement, Vitafoam Disclose Insider Dealings
Finance2 days ago
DSS Arrests EFCC, Acting Chairman, Magu
Economy5 days ago
Citigroup Sees $60 Per Barrel Crude Oil in the Next 12 Months
Technology6 days ago
Jeff Bezos Sets a New Record as Net Worth Hits $172bn
Finance2 days ago
CBN Spends $11.5bn in Q1 2020 to Support the Economy and Dwindling Naira
Finance6 days ago
Debt Market: Dangote Cement Raises N250 Billion in H1, 2020