Economy

FG to Complete $1.6bn Lagos-Ibadan Rail by December -Amaechi

Published

3 years ago

October 2, 2020

Lagos-Ibadan Rail to be Ready for Use in December

The Minister of Transportation, Rotimi Amaechi, has said the $1.6 billion Lagos-Ibadan railway project will be completed by December 2020 or early January 2021.

The transport minister disclosed this during a live television programme that also had the Minister of Works and Housing, Babatunde Fashola in attendance virtually.

Amaechi also said he would work with the Lagos State government to move heavy-duty trucks from roads and boost the state accessibility.

Speaking during the programme, Fashola said without effective rail lines, Nigerian roads would not last.

“I am his biggest champion when he (Amaechi) is presenting his request in the cabinet for the rails because I know that without the rail the roads will not last,” Fashola said.

He added, “The tankers are plying excess cargo; they are moving 60,000 tonnes instead of 33,000, 40,000 or 45,000 tonnes maximum. So, the best way is to move all that cargo into the tracks.

“That is what happens in countries we want to be like and that is where we are heading. So, he (Amaechi) has my support.”

Responding to questions, Amaechi said he will work with Fashola to move cargoes from road to rail, adding that transfer of cargoes to rail would start mainly with the Lagos-Ibadan rail line.

He said, “I intend to approach him (Fashola) in January and approach the Lagos State governor so that we can see how we can deal with Apapa. Why I said that is because by December to first or second week in January, we should have completed the Lagos-Ibadan.

“Then if we do, there will be a need to decide what vehicles can go to Lagos and the capacity of such vehicles or trucks.”

Amaechi added, “If we do that, we can then transfer all the cargoes that come from Apapa seaport to the railway. We believe we could transfer that up till Ibadan while we are still constructing the rail line from Ibadan to Kano.”

The minister further stated that in two to three years, the Ibadan-Kano rail line would have received a lot of work, adding that more cargoes would move on the rail line.

He said, “In the next two to three years, we will see how much we would have tried to complete the Ibadan to Kano line. The more we are able to move these cargoes out of the road, then we can save our roads.

“Similarly, the same thing will happen from Port Harcourt to Maiduguri. So, I agree completely with the works minister, Babatunde Fashola, and I say to Nigerians to be more patient with us and allow us work to complete the projects.”

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

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Economy

Inflation and Forex Mismanagement Drive Petrol Truck Prices from N7M to N25M

Published

2 days ago

December 8, 2023

Investors King

The Chairman of the Independent Petroleum Marketers Association of Nigeria in the Satellite Depot branch, Akin Akinrinade, has raised an alarm over the rising cost of petrol trucks in Nigeria.

According to Akinrinade, the cost of a petrol truck has surged from N7 million in May to an astonishing N25 million at present, attributed to inflation induced by poorly managed foreign exchange rates.

Akinrinade pointed out that the forex mismanagement has significantly impacted the landing cost of premium motor spirit (PMS), commonly known as petrol, consequently leading to a surge in pump prices.

The unstable business environment, coupled with the astronomical rise in expenses, has created challenges for marketers in the downstream oil sector.

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), highlighted in October 2023 that foreign exchange challenges have hindered private companies from importing petroleum products.

As a result, the NNPCL has become the exclusive importer of petrol.

The decision to limit private entities from importing fuel comes after President Bola Tinubu’s initiatives aimed at deregulating the fuel market.

Initially, the plan was to allow private companies to import fuel starting June 2023, aligning with efforts to balance the market after removing petrol subsidies.

The ripple effects of the soaring petrol costs are already evident, with commercial transporters increasing fares, and private car owners seeking fuel-saving alternatives.

As Christmas approaches, the surge in demand for interstate travel is expected to further elevate costs, posing financial challenges for many Nigerians amidst stagnant income levels.

Economy

Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption

Published

4 days ago

December 7, 2023

Investors King

The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.

The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.

The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.

The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.

This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.

Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.

The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.

Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.

Economy

Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion

Published

4 days ago

December 7, 2023

Investors King

The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.

Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.

During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.

He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.

Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.

The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.

Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.

The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.

The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.