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Lagos-Ibadan Rail Project Almost Completed –FG

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  • Lagos-Ibadan Rail Project Almost Completed –FG

The Federal Government on Tuesday announced that the construction work on the Lagos-Ibadan rail line project was gradually coming to an end.

It said the project was being finalised as train ride would commence from Iju in Lagos State to Abeokuta in Ogun State by the first week of January 2019.

The Minister of Transportation, Rotimi Amaechi, who disclosed this while inspecting the rail project alongside some members of the House of Representatives, further stated that the target of the Federal Government was that by the end of January next year, the train service would also start operations in Ibadan, Oyo State.

Amaechi said, “We are gradually coming to the end of the project because we are 6km away from Abeokuta and I have been assured, even though sometimes they may not keep to their promises, that we will be able to ride from Iju to Abeokuta at least by the first week of January.

“The idea is to bring the Vice-President and some ministers to join us in the ride. When we do the ride we will then allow passengers to use it up to Abeokuta. Our target is that by the end of the month we should get to Ibadan by rail.”

The minister stated that after the completion of the rail lines, the government would put pressure on the contractor handling the project to fully carry out work on the train stations.

Amaechi added, “We can begin to put the pressure on them (contractors) to build the stations, for as you drive past the stations, you’ll see that they are working but they are slow because I’ve told them that emphasis should be on the tracks.

“In fact, I will tell them not to continue to build the two tracks, but to focus on one so that while we are using that one, they can be building the second track. Because as they take the two, it’s slowing down the construction period.”

Providing further proof that the $1.6bn project had recorded appreciable progress, Amaechi said, “Don’t forget that when we started, it was a huge forest. In fact, as we traverse this area, most places are no longer known to us. There are now bridges in the little waters we used to drive across; there are now valleys in the hills we used to climb. There are changes.”

The minister added, “While we congratulate the Chinese for their technologies, one thing Nigerians must learn is how to build for ourselves our own roads and railways. Other countries did it. We cannot continue to depend on other peoples’ technology. The earlier we learnt that, the better.”

He also stated that the Lagos-Ibadan rail project would get about eight locomotives from the Ajaokuta Steel Company, adding that wagons were also being expected from the steel firm.

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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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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