New Telegraph

OPS knocks FG’s reasons for N1.9bn Kano-Niger Republic railway project

…says it’s misplaced priority

Nigerians have continued to expressed outrage over the Federal Government’s N1.9 billion Kano – Niger Republic railway project, with the members of the Organised Private Sector (OPS) hitting hard on the Federal Government, condemning the reasons adduced for the project by the Minister of Transportation, Rotimi Amaechi, as totally unacceptable and a misplaced priority as the project will not be economically viable to the country’s Gross Domestic Product (GDP) both in short, medium and long terms.

The OPS, which is the umbrella body and leading voices of all chambers of commerce and business community in Nigeria, flayed the present administration’s decision to abandon the country’s infrastructural development for the railway project considering the small size of Niger Republic and the volume of trade generated for Nigeria.

The former President, Lagos Chamber of Commerce and Industry (LCCI), Babatunde Ruwase, former Chairman, Export Group of the Lagos Chamber of Commerce and Industry (LCCI) and also member of the Governing Council of LCCI, Dr. Obiora Madu and former Chairman, LCCI SMEG (Small and Medium scales Enterprise Group), Dr. Jon Tudy Kachukwu among others in an interview with Saturday Telegraph, faulted the government’s decision. Kachukwu explained that the railway project is not economically viable to Nigeria while imputing to it politics, which he said will not augur well for Nigeria’s GDP. Kachukwu said: “To give an answer to your question, it does not make any logical, economically or otherwise any sense.

We really don’t have much to gain from Niger Republic, it is just purely political. It is not going to improve the SMEs plan, it is not going to add values to Nigerian exporters. The industrialist added that: “This is what we have been saying and talking about that our leaders are too sentimental because something that will add value they will not go for it but do things politically.

I mean that project will take us to nowhere.” While reacting to reasons Ameachi gave to justify the project, the former LCCI SMEG chairman said: “If what he was talking about have economic advantages, we wouldn’t mind being a former chairman of LCCI SMEG and as a council member of LCCI, I am talking on behalf of all SMEs. Any policy that won’t add value to the economy and the SMEs makes no sense.

‘‘What is the volume of goods being exported to Niger Republic? Minimal! So why is he now telling us about checkpoints as defense for the multi-billion dollar railway project,” he added. Madu said government rational for the project was not justifiable: “I read where the transportation minister said he was begging Niger Republic’s government to construct railway into Niger Republic. I can’t just believe and understand this. Excuse me, what is the size of the economy of Niger Republic, that’s their entire economy? ‘‘I can tell you that with strategic planning and implementation, we can drastically bring down the unemployment level in this country.

We have the resources to do it. “At a time our own infrastructure has gone down to ground zero, causing skyrocketing in prices of goods movement within and outside the shores of Nigeria, we are investing in building the infrastructure of a smaller country like Niger Republic, it is so sad.’’ Madu, who is also the chief facilitator and chief executive officer of Multimix Academy, a renowned logistics and supply chain management expert, said: ‘‘There is no doubt, it does appear this is for obvious political reason, which is best known to those people who are implementing it. “Obviously, to the best of my knowledge, it is not in the best interest of this our economy. There is no economic explanation for that Kano – Niger Republic railway project, it is just pure political.”

However, Ruwase said that the railway project could be at Nigeria’s advantage in the long run in a bid to capture the West African region markets as a ‘Big Brother’. For instance, the former LCCI President explained that Nigeria, under the regime of General Yakubu Gowon did same by constructing the road from Seme to Cotonou, Benin Republic. “For me, we don’t have all the economic details of the project. But from what the transportation minister has said, it makes more economic sense for us to do what they have done.

If you recalled, the road from Seme to Cotonou was constructed by the government of Nigeria under the administration of General Yakubu Gowon. ‘‘The reasons the transportation minister has given I think it is for economic interest.

Indeed, a lot of businesses are going on along that corridor. So it is high time we shouldn’t be throwing politics into business. “Businesses does not give birth to emotions or sentiments, it’s a question of profit-making and how profitable this one is to me. On the human face value of this, I would not condemn it because at the end of the day all our neghbouring countries we have more to gain from them as a ‘Big Brother’ nation. On adverse effects of bad infrastructure on Nigeria’s GDP, the OPS emphatically said, “we are losing fortunes on that aspect and definitely affecting our GDP revenue collection. But it is not today we are seeing that. The only solution is adoption of PPP as we cannot afford to leave everything to the Federal Government to do it alone, we should be able to add value to proper infrastructure.”

On bad infrastructure, Kachukwu said: ‘‘Definitely, it is taking toll on our GDP because of the bad infrastructural deficit. What it means is that we are losing businesses to other neighbouring countries for instance Ghana. “The infrastructural deficits in Nigeria are nothing to write home about. Because here we are talking about infrastructure without security, roads are bad, no portable water, electricity and basic amenities.”

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