Nigerians will enjoy cheaper means of transporting goods and raw materials once the Nigerian Railway Corporation Act is repealed and re-enacted, the Senate has assured.
Analysts say passage of the proposed law will reduce the incessant damage to the nation’s roads and highways by heavy-duty trucks.
At a one-day public hearing on the bill Monday, Gbenga Ashafa, chairman, Senate Committee on Land Transport, says the country has a lot to derive from the revival of the railway transport system.
According to Ashafa, the new bill will not only stand the test of time but also open up the rail sector to private investments in the areas of concessioning, determination of public service obligations, effective passenger services and establishment of a regulatory framework for private participation.
The federal lawmaker said the repeal and re-enactment of the bill were aimed at revitalising and enhancing the operational framework and removal of the impediments that hindered international best practices within the rail transport sector.
“We earnestly hope that at the end of this process, the new Act will constitute a qualitative document capable of setting the Nigerian railway sector on the path of positive development,” Ashafa noted.
BusinessDay reports that the first rail project in Nigeria was embarked upon by the then British Government in 1898. However, the Government Department of Railway came into force on October 3, 1912 by the amalgamation of the Lagos Government Railway and Baro-Kano Railway. It became a statutory body by virtue of the Nigerian Railway Corporation Act of 1955.
The bill is one of the 15 recommended for expeditious passage by the National Assembly Business Environment Roundtable to improve Nigeria’s position in the World Bank Ease of Doing Business ranking.
Nigeria ranks 169 out of 189 in the 2016 World Bank Doing Business report.
Declaring the event opening, Senate president, Bukola Saraki said the existing law in the rail sub-sector was drafted and enacted to support an outmoded model that restricts management and investments in railway to the public sector.
While calling for expeditious passage, he said the proposed Railway Bill will lead to a new era of growth and enablement for the private sector to participate more directly in the provision of rail services and infrastructure in the country.
He said: “Aside the fact that this law has become too old and outmoded, many experts including the business community agree that there is need to separate the regulator from the operator and give investment remit to both the states and the private investor to invest in the sector.
“This, it is said, is to ensure a much more rapid deployment of the rail system across the nation and bring in competition, innovation and drive in this all-important sector.
“The passage of this bill and the implementation of its provisions will have the impact of a new economic revolution.”
