Tinubu’s reforms yielding positive results, says Alkali
One, the mandate of the ministry is land transport, and we have some parastatals under the ministry. We have the Federal University of Transportation in Daura. We have the Nigerian Railway Corporation (NRC). We have the Institute of Transport Technology in Zaria. And then the main ministry.
The ministry is to oversight all the parastatals under it. And let me start with the university. First and foremost, when I took over as a minister, I went around to see by myself because seeing is believing.
So, I said, let me see where we are and where we need to be. I was in Daura for the inspection of the Federal University of Transportation. The university came into being as a corporate social responsibility by one of our contractors, CCECC.
The university bill was passed into law, and the law was assented by the former president. At the time I took over, it was only the vice chancellor that was appointed.
But when I went there, I saw a very beautiful edifice that I felt time was of the essence, and we needed to put the structure into use. So, I approached the National Universities Commission (NUC) to appoint a mentor university.
They appointed Ahmadu Bello University, Zaria, because I’m sure you are aware that for a university to take off, at least we need four principal officers. We need the vice chancellor, the registrar, the bursar, and the librarian. So, with ABU, we had the registrar. We had the bursar and the librarian.
So, we started, but then the university was not captured in the appropriation estimate of 2023. And we needed funding for the take-off.
So we came back to the ministry, and we approached CCECC to raise some funds for us. Having done that, we started outsourcing lecturers on visit. When they constructed the university, we designated a hostel for the visiting lecturers so that they would not have accommodation issues.
So, we started with the visiting lecturers. Then , we approached the Joint Admissions and Matriculation Board (JAMB) as to how to get the students admitted into the university. Then, the portal for fresh admission was closed.
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We came through ‘Change of Institution’. Graciously, we got over 500 students who applied. After screening them, those who qualified were admitted. Then they started the lectures. Thereafter, we approached Tertiary Education Trust Fund (TetFund) for their intervention. When we went, I met the Chief Executive myself.
They gave us a checklist. Fortunately, the university was able to qualify in all the checklists. The university was enlisted for Tetfund intervention against 2025.
Graciously, Mr. President and Commander-in-Chief, Bola Ahmed Tinubu, later approved for the enlistment of the university in the 2024 capital budget of the country. So we started. So far, the students are matriculated. As we speak, we have already finished part one. So we were able to achieve this barely in one year. So this is how far we have gone with the university.
Coming back to the Nigerian Railway Corporation, I visited all the projects. So I went to see Mr. President to give him a brief of the activities of the ministry. He had directed me to continue with all the ongoing projects under the railway modernisation.
I inspected Lagos to Abuja; Abuja to Kaduna; Kaduna to Kano, and Kano to Maradi. Before I became minister, already Lagos to Ibadan had been put into use for train service. So you see this railway, the economic viability that we have is in freight.
I got back to the railway and saw how we could start freight. We have two rail lines inside the APMT terminal in Apapa. We have the standard gauge and the narrow gauge. We started the freight on the standard gauge from Lagos to Ibadan. Then we started rehabilitating the old narrow gauge because there was some wash-away along Baro in Niger State. After the rehabilitation was done, we were able to commence freight from Lagos to Kano, so they will be able to put Kano inland dry port into use.
I’m sure by that, it is going to boost the economic activities and the Gross Domestic Product (GDP) growth of the country. So we now came back again to see how we can continue moving the project from Ibadan to Abuja.
Because Abuja to Kaduna is put into use. So you can see there is a gap between Lagos and Abuja. Mr. President directed the vice president to lead us to the Belt & Road Forum Initiative (BRFI) conference in Beijing.
The Vice President was granted to have a bilateral meeting with President Xi Jinping. So, he made that case on behalf of the Federal Republic of Nigeria. Graciously, the President of China has intervened. As we speak, we are able to raise the funding. We are just about to get the first drawdown so that we are going to fix Ibadan, Kaduna, to Abuja. We still have a gap of Ibadan to Abuja.
When Mr. President went himself for the Forum of China-Africa Cooperation (FOCAC), and he made a case for Ibadan to Abuja. The President of China graciously promised to intervene in raising the financing of Ibadan to Abuja. So that by so doing, you will be able to connect Lagos to Abuja, Abuja to Kaduna and Kaduna to Kano.
We still have Kano to Maradi, but it was awarded to a different contractor. I went to Kano to Maradi to see by myself. But the project is still ongoing.
In fact, in the last one year that I was here as a minister, I visited the project three times. They have done the earthwork and a lot of culverts. They gave us commitment that they are going to fix Kano to Kaduna and a branch line to Dutse by next year. That is how far we have gone on Lagos to Abuja, Abuja to Kaduna, Kaduna to Kano and Kano to Maradi, respectively.
Are you impressed with the level of work done so far?
Yes, I am impressed. In fact, it is not long since I was there, even with the members of the National Assembly, because of the powers conferred on them to oversight all ministries, departments, and agencies.
I am also impressed they have addressed the media after the inspection. We also have the Eastern narrow gauge. That one is to cover from Port Harcourt to Maiduguri. It transverses about five geopolitical zones. Port Harcourt is in South-South, Aba is in Southeast, Kaduna is in Northwest, and then the one in North-Central and North-East. At the time I took over, the project was just at the outskirts of Port Harcourt.
I had to mount pressure on the contractor at least to see how we can fix Port Harcourt to Aba so that we will be able to start the train service. And I am sure if you have been to Port Harcourt recently, you can see how bad the road from Port Harcourt to Aba is. So we are able to fix Port Harcourt to Aba for train service.
We now came back to see how we can now continue with the project to fix Port Harcourt to Onne, and Port Harcourt to Port Harcourt Port, so that we will be able to start freight from Onne to Aba. At least Aba is one of the viable commercial cities in the Southeast so that we will start freight. This is how far we have gone with the railway.
Recently, an investor approached the ministry to see how we can start retrofitting our locomotives. You know you cannot do conversion with high-level engines like cars and generators. The only way we will be able to save cost, especially with the withdrawal of subsidy, is to start retrofitting the locomotive.
We have successfully retrofitted one locomotive, partly diesel, and Liquefied Natural Gas (LNG), about 80 per cent is LNG, while the 20 per cent is diesel. By that, you will be able to save a lot of cost.
In fact, we have reached a milestone with the investor so that he will bring some locomotives and some wagons so that he will start freight in some of the corridors. That one, too, has reached an advanced stage. This is how far we have gone with the railway.
Coming back to the NITT in Zaria, we have started conversion centres. We have one centre in Zaria. We have another one in Abuja here. We are about to commence the one in Enugu and Lagos very soon. By the grace of God, what we want to achieve is to have the conversion centres in all the 36 states of the Federation.
Which of these feats do you think could enhance the prospects of the ministry in terms of visibility and contributions to the nation’s economic development?
Of course, it has to be all of them because each of the parastatals has its mandate. As I have briefed you, each of the mandates has its own impact on the economic growth and development of the country.
What special role did you play towards the much publicised visibility of the university in Zaria?
Of course, I have told you. This is the role I have played because I have a responsibility as a minister oversighting the university. The university is under our own supervision. The enlistment of the TetFund, the admission, the appointment of the mentor University, how to outsource lecturers on visiting – all this was done under my watch.
What effort is the ministry of transport undertaking to address the multiplier effects of the removal of subsidy on petroleum producers, especially in the transport sector, which is considered a strong pillar of the economy?
With the Institute of Transport Technology in Zaria, I told you we have started the conversion. We have one centre in Zaria. We have another one in Abuja. And very soon, the one of Enugu and Lagos will be put into use. Gradually, of course, the journey of 1,000 miles starts with one step. As we are making progress, we intend to cover all the states of the federation.
By the time you are able to achieve the conversion, I am sure if you have a car, the cost you are going to spend to refill the cylinder and the distance the cylinder is going to cover, you have about 300 per cent to 400 per cent savings compared to petrol or diesel.
What role does the ministry play in sustaining smooth industrial relations in the rail sector and the main relations among various trade unions and associations providing transport services in the sector?
The ministry has a role here because we are coordinating the railway sector, the transport sector. In fact, as we speak, we have approached Mr. President for an intervention in the infrastructure, even on the road.
He has graciously approved for the construction of port terminals, one in each geopolitical zone. He has directed the Ministry of Transportation to liaise with the Ministry of Finance to continue funding the terminals through the International Monetary Fund (IMF). After constructing the terminals, he also directed us to concession the terminals for long-term viability.
On the railway as well, the ministry is having synergy with the National Assembly to see how we can unbundle the railway. By the time you repeal and enact the Railway Act, it allows private sector participation. For instance, now, if the private sector can come and invest in the sector, you bring your coaches, you bring your locomotive, and you bring your wagons.
Then we concession a corridor for you, so that you start freight, you start train service. Also, the ministry has developed a land transport policy. We don’t have a land transport policy in the country.
We were in Abeokuta for the annual conference. We presented the draft report before all the stakeholders so that they would make their input. In fact, by the grace of God, in the next one or two weeks, we are going to take the report to the council for approval.
How are you trying to synergise with the Ministry of Marine and Blue Economy?
It doesn’t have to do with marine and blue economy, because it’s a land transport policy.
I am talking about synergising in terms of transportation generally, from rail to water to air.
That is why we are very, very categorical that the policy is land transport policy, not transport policy. Assuming we said it’s a transportation policy, then it affects both land and water. But this one is very specific, national land tra nsport policy.
Are the agencies under your ministry really delivering the presidential priorities?
Of course they are. All these I have mentioned are in the priority list of Mr. President. The conversion centres, the takeover of the university, the freight service, the rail service, all these are his priorities. Because even the primary responsibility of government, welfare is one of them.
What key challenges did you encounter when you took office?
The key challenge is with the financing because this project was predicated on the Engineering, Procurement, and Construction and Financing (EPC+F) model. The federal government is to raise 15 per cent through appropriation, which Mr. President has done. But it’s still difficult for the contractors to raise the financing. But we are on top of the situation gradually.
But there is the assumption that the transport ministry has a lot of money. So how come you have financing challenges?
It’s a contract. When a contract is predicated on EPC+F, the country is governed by rule of law, the government has done its own part to through appropriation. The contractor is expected to go and raise the financing on behalf of the federal government. It’s already a contractual agreement, and you have to abide by it.
Lately, there have been incidences of rail derailment in some parts of the country. Are you worried, and what are you doing in that respect?
Of course, I should be worried as a minister. Some of them are human error, and some of them are technical. But when the incidences started, I called the Managing Director of the Railway and all the team of its engineers. And we have done a lot of things there, but because it’s a security issue, it’s not something I can mention here.
There’s this whole noise about Compressed Natural Gas (CNG) now. The ministry of transport is rarely mentioned in most of their events. What role are you playing because the government has so invested in this CNG thing. What part are you playing? Are you involved at all?
Of course I should be, as a minister of transportation, it is to have a synergy between the ministry and the presidential committee. Not only that, I told you, even our parastatal in the ministry, we have started the conversion from diesel to CNG, or petroleum to CNG.
What’s that parastatal called?
The Nigerian Institute of Transport Technology. A lot of federal government agencies have brought their cars, and we have done the conversion. The Nigerian army has brought their patrol vehicles, and the institute has done the conversion because they have a conversion centre here in Abuja, from petrol to diesel. And when you are in a difficult terrain, you revert to your petrol and keep moving
The Warri-Itakpe rail line is in a mess right now. At a point, they had at least 10 coaches on that line. Now they have two. This is causing a lot of hardship for travelers. Many people now stand throughout, and others buy tickets at higher prices.
You have to access your ticket online. Do you understand? So, you go online, and you obtain your ticket. Then why will you allow somebody to collect extra from you? That is not allowed. These are some of the things that encourage public officers. It’s not allowed.
People stay awake all night just to buy tickets, but they say it doesn’t work
You see, let me tell you something that you didn’t know. How much does it cost to buy one litre of diesel? What is the cost? How much is the diesel consumption of one locomotive? What I’m trying to tell you is that the money you are paying for the ticket, NRC doesn’t recover the cost of the diesel. So, it is the government that provides subsidies there for you to get the ticket at N5,000.
If I may ask you, if you are coming by road, how much do you pay? Now you are paying N5,000 here. So, you can see what the federal government has done for you.
Is it possible for the federal government to raise the price of tickets, at least to recover costs, because most of the coaches are broken down?
That is why we are trying to bring private investors. So that by the time they come and put in their investment, they will bring more coaches and more locomotives. But as we speak, if we raise the money, it’s another trouble.
You will be the first person to say the federal government has increased the price of the railway ticket. You will be the first person to make the complaint. So, you are between the devil and the deep blue sea, which is very difficult to operate.
But is it not better than having broken down coaches?
Probably you said that because you will be able to afford the N10,000. And a lot of people may not afford the 10,000. So, we are trying to be too considerate. Because the government is mindful of the hardship. We are trying to see how we will make some little palliatives.
Maybe if you remember, like December last year, the president provided palliatives for free train rides across all the corridors. During Christmas and up to New Year and this was to cushion the effect of the withdrawal of the subsidy.It’s a primary responsibility of government to provide welfare.
Lastly, what role or to what extent do you think your ministry is pivotal to the failure or success of the present administration?
You see, transportation is one of the key priority areas of this administration. That is why since I took over, I am always on the move to see how we will be able to meet up to his priorities. So, we are up and doing. And we will continue to do the best we can do.