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Flyover, RoW Stall New Lagos-Ibadan Rail Project

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rail project- Investorsking
  • Flyover, RoW Stall New Lagos-Ibadan Rail Project

Construction work on the Lagos-Ibadan standard gauge rail has been suspended over right of way issues and a flyover bridge at Ijoko, Ogun State.

The Minister of Transportation, Mr. Rotimi Amaechi, gave the indication on Monday, saying the height of the bridge would have to be raised for future electrification of the rail line.

The flyover bridge, being constructed by the Ogun State Government as part of the Sango-Ijoko-Berger road project, is over 90 per cent completed.

Amaechi, who spoke with journalists along with Governor Ibikunle Amosun of Ogun State at the Ijoko Railway Station, the site of the flyover bridge, said the bridge and the right of way issues would have to be addressed before actual construction work could commence on the modern rail line.

The minister also met with the contractor handling the railway project, the China Civil Engineering Construction Corporation, in Lagos on the level of work done thus far.

He said, “Today, we came to the conclusion that they (CCECC) have not commenced serious work and this is because of the problems they are having on the right of way.

“One of the problems is the height of the flyover, which Ogun State is building. We need to increase the current height from 4.8 metres to 6.5 metres, because we may want to use electricity to power the engine (in future).”

Amaechi stated that the engineers would meet on the issue from Monday to Wednesday with a view to proffering solutions to the problem.

The Federal Government had earlier said that by the end of 2018, the new rail line should be running. The plan is to connect it to the recently inaugurated Abuja-Kaduna rail and take the double line to Kano.

Amosun, in his reaction, commended the Federal Government for promptly responding to the right of way issue and showing commitment to efforts to resolve it.

He urged the contractor to speed up work on the rail project in order to ease the pressure on the road, adding that the state government’s construction of the flyover bridge was meant to complement the project.

The governor stated, “The gap that we left for this bridge is not enough, that’s why they advised that we should stop this bridge now. Thank God we have resolved this; there are several options, several engineering solutions; that’s why we have to commend the Minister of Transportation. He is here with all the consultants and the contractors doing the rail.

“It is going to be in our interest if this rail is fixed; not only Ogun State’s interest, but Nigerians’ interest. All the economies of Nigeria depend to a considerable extent on this axis, moving from Lagos to Ibadan, to the North, even the one going to the East.

“On our part as a state, we will do our bit. We are going to complement their efforts and that’s why we are doing this bridge, which should have been done by the Federal Government. Those grey areas, engineering details, we are going to fine-tune them.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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