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11 Years After, Abuja Light Rail Takes Off

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Rail
  • 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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POS Terminal Deployment in Nigeria Hits 2.68 Million in March 2024

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POS Business in Nigeria

The total Point of Sale (POS) terminals deployed across Nigeria have now reached 2.68 million as of March 2024.

According to data released by the Nigeria Inter-Bank Settlement System (NIBSS), this represents a Year-on-Year (YoY) growth rate of 47.36% and reflects the accelerating pace of digitalization within the nation’s financial sector.

The proliferation of POS terminals signals a fundamental shift towards cashless transactions, as businesses and consumers increasingly embrace the convenience and efficiency offered by digital payment solutions.

This surge in adoption highlights the growing reliance on technology to facilitate financial transactions, driving innovation and transforming the way commerce is conducted across various sectors of the economy.

Breaking down the figures, January 2024 saw a deployment of 2.47 million POS terminals, representing a significant YoY increase of 50.61% compared to the same period in 2023.

Similarly, February 2024 witnessed a surge in deployment with 2.58 million POS terminals, marking a YoY growth rate of 54.49% compared to February 2023.

While these numbers paint a picture of rapid expansion, a closer examination reveals that there are over a million registered POS terminals yet to be deployed or taken up by merchants.

In January 2024, the number of registered terminals reached 3.44 million, rising from 2.31 million in 2023. February and March continued this trend, with registered terminals reaching 3.6 million and 3.73 million respectively in 2024.

The increase in registered POS terminals underscores the potential for further expansion and utilization within Nigeria’s digital payment landscape.

As the number of terminals continues to grow, there is a clear indication of the country’s readiness to embrace cashless transactions on a broader scale, paving the way for increased financial inclusion and efficiency.

Industry stakeholders view this surge in POS terminal deployment as a positive step towards realizing Nigeria’s vision of becoming a digital economy powerhouse.

However, challenges such as infrastructure development, regulatory frameworks, and merchant adoption still need to be addressed to fully harness the potential of digital payments in driving economic growth and development.

As Nigeria moves towards a cashless future, collaboration between the public and private sectors will be crucial in overcoming these challenges and ensuring that the benefits of digitalization are accessible to all segments of society.

With the continued expansion of POS terminal deployment, Nigeria is poised to emerge as a leader in digital payments innovation, transforming the way transactions are conducted and driving economic progress in the process.

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Appointments

President Tinubu Appoints Nigeria’s Renowned Banker, Jim Ovia as Chairman of Nigerian Education Loan Fund

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President Bola Tinubu has approved the appointment of the Founder and Chairman of Zenith Bank Plc, Jim Ovia, CFR, as the Chairman of the Board of the Nigerian Education Loan Fund (NELFUND).

This was announced in a State House Press Release by the Special Adviser to the President on Media and Publicity, Chief Ajuri Ngelale on April 26, 2024.

According to the statement, ‘‘the President believes Mr. Ovia will bring his immense wealth of experience and professional stature to this role to advance the all-important vision of ensuring that no Nigerian student suffers a capricious end to their pursuit of higher education over a lack of funds and of ensuring that Nigerian youths, irrespective of who they are, have access to higher education and skills that will make them productive members of society and core contributors to the knowledge-based global economy of this century.’’

Jim Ovia, CFR, is the Founder and Chairman of Zenith Bank Plc, one of Africa’s largest banks with over $21.4 billion in assets and shareholders’ funds of over US$2.4 billion as at December 2023.  Zenith Bank is a global brand listed on the London Stock Exchange and the Nigerian Stock Exchange.

In addition to major operations in Nigeria and other West African countries, the Bank has sizeable operations in London and Dubai.

Jim Ovia is the Founder and Chancellor of James Hope University, Lekki, Lagos which was recently approved by the National Universities Commission (NUC) to offer postgraduate degrees in business courses.

James Hope University commenced activities in September 2023.

Through his philanthropy – the Jim Ovia Foundation – he has shown the importance he accords good education.  In support of the Nigerian youth, Jim Ovia Foundation offers scholarships to indigent students through the Mankind United to Support Total Education (MUSTE) initiative.

Most of the beneficiaries of Jim Ovia Foundation scholarship are now accountants, business administrators, lawyers, engineers, doctors etc.

He is the author of “Africa Rise and Shine”, published by ForbesBooks. The book which encapsulates Zenith Bank’s meteoric rise, details the secrets of success in doing business in Africa. He is an alumnus of the Harvard Business School (OPM), University of Louisiana (MBA), and Southern University, Louisiana, (B.Sc. Business Administration). Jim Ovia is a member of the World Economic Forum (WEF) Community of Chairpersons, and a champion of the Forum’s EDISON Alliance.

In recognition of Jim Ovia’s contributions to the economic development of Nigeria, in 2022, the Federal Government of Nigeria honoured him with Commander of the Federal Republic, CFR. Also, in May 2022, Jim Ovia was conferred with the National Productivity Order of Merit (NPOM) Award by the Federal Government of Nigeria.

Earlier, he has been conferred with the national awards of Member of the Order of the Federal Republic, MFR, and Commander of the Order of the Niger, CON, in 2000 and 2011, respectively, as a testament to his visionary leadership and contributions to Nigeria’s financial services sector.

The National Student Loan Programme is a pivotal intervention that seeks to guarantee sustainable higher education and functional skill development for all Nigerian students and youths.

The Nigerian Education Loan Fund, the implementing institution of this innovation, demands excellence and Nigerians of the finest professional ilk to guide and manage.

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NNPC and ARPHL Collaborate to Expand Port Harcourt Refinery to 310,000bpd

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NNPC - Investors King

The Nigerian National Petroleum Company Limited (NNPC) has joined forces with the African Refinery Port Harcourt Limited (ARPHL) to expand the Port Harcourt Refinery.

The collaboration entails ARPHL’s subscription of a 15% equity stake in the Port Harcourt Refining Company, a move aimed at augmenting the refinery’s daily production capacity from 210,000 barrels per day (bpd) to 310,000bpd.

The agreement, finalized at a signing ceremony held at the NNPC Towers in Abuja, underscores the commitment of both parties to bolstering Nigeria’s downstream oil and gas sector.

Managing Director of African Refinery Port Harcourt Limited, Omotayo Adebajo, and NNPC’s Executive Vice-President, Downstream, Adedapo Segun, sealed the deal, marking a pivotal moment in the nation’s quest for energy self-sufficiency.

According to statements released by NNPC and ARPHL, the subscription agreement represents a crucial step towards expanding Nigeria’s refining capacity and addressing the nation’s persistent reliance on imported petroleum products.

The proposed increment of 100,000bpd in the Port Harcourt Refinery’s capacity is poised to significantly reduce Nigeria’s dependence on imported fuel, fostering economic resilience and energy security.

Speaking on the collaboration, NNPC’s Executive Vice-President highlighted the strategic significance of co-locating the proposed additional refining capacity with the existing facilities at the Port Harcourt Refinery complex.

The move not only optimizes existing infrastructure but also underscores NNPC’s commitment to modernizing and revitalizing Nigeria’s refining sector.

In a similar vein, Tola Ayo-Adeyemi, Group Executive Director, Legal and Regulatory Compliance at African Refinery Group, emphasized the transformative impact of the collaboration on Nigeria’s energy landscape.

He highlighted the ARPHL refinery project’s position as the largest private refinery in Nigeria’s South-South and South-East geopolitical regions, underscoring its pivotal role in driving regional development and economic growth.

The groundbreaking ceremony for the ARPHL refinery project, scheduled for later this year, symbolizes a significant milestone in Nigeria’s journey towards energy independence.

With construction slated to commence in 2025 and commercial operations targeted for 2027, the project represents a beacon of hope for Nigeria’s refining sector, promising to deliver over 30 million liters of various petroleum products daily upon completion.

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