Stakeholders Push for Privatization of NRC

The call for privatization of the Nigerian Railway Corporation (NRC) to drive efficiency and improve transportation infrastructure has been echoed by various stakeholders in the industry.

They emphasize the need for technological advancement, efficient management, and restructuring to enhance competitiveness and complement other modes of transportation.

Olumide Ohunayo, Assistant General Secretary of the Aviation Round Table, highlights the necessity for privatization to introduce technological advancements and streamline operations.

He points out the challenges of corruption within the current rail system and management, suggesting that privatization could bring the necessary efficiency and competitiveness.

Rowland Ataguba, CEO of Bethlehem Rail, suggests a different approach to restructuring the railway sector. He proposes separating regulation from operations and updating the Railway Act to align with recent constitutional amendments allowing sub-national governments to participate in the railway sector. Ataguba emphasizes the need for an independent regulatory agency separate from the NRC to oversee operations.

Ataguba further proposes unbundling the NRC into four distinct components: an independent regulator, an infrastructure company, a national carrier for operations, and a non-core assets company for privatization. This approach aims to attract investment, improve efficiency, and foster competition within the sector.

John Ojikutu, CEO of Centurion Security Limited, emphasizes the government’s role in creating an enabling environment for private sector investment in the railway sector. He proposes a model where the government facilitates access to rail lines while maintaining regulatory oversight, allowing individual investors to operate trains and bear responsibility for maintenance. Ojikutu suggests that this approach would enhance accessibility to trains while leveraging private sector resources and expertise.

Overall, the stakeholders advocate for privatization, restructuring, and regulatory reforms to drive efficiency, innovation, and investment in the Nigerian railway sector, ultimately contributing to the nation’s transportation infrastructure and economic development.