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11 Years After, Abuja Light Rail Takes Off

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  • 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).

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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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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