Unbundle Nigeria Railway Corporation, now – NSE

Nigerian Society of Engineers (NSE) has demanded for the unbundling of the Nigeria Railway Corporation (NRC) without further delay, saying its Bill in the National Assembly was not far-reaching enough to bring about restructuring in the sector.

The NSE president, Otis Anyaaeji, said in Port Harcourt at the weekend that it had made their position known on the Nigerian Railway Corporation Act (Repeal and Enactment) Bill, 2015 as proposed by a senator, Emmanuel Andy Uba, Anambra South, a private member bill, which is different and separate from the Nigeria Railway Authority Bill 2015 submitted to the National Assembly by the executive.

The NSE said the Bill as presented still retained what they called the monolithic structure of the existing Nigeria Railway Corporation without consideration for unbundling of the current system and institutionalizing Public-Private Partnership (PPP) in the spirit of international best practice in railway governance and management in Nigeria. Articles: 10(2) (i), 11&12 vests the power of concessioning railway infrastructure on the corporation.

Anyaeji said it was imperative to unbundle the NRC into viable entities using time-tested PPP models as had been exemplified in other nations with long history of railway operations. “Separate private companies under suitable PPP arrangement could be formed to take care of Infrastructure Network, City/Inter-city Passenger Train Operations, Freight Traffic Operations and Leasing/Maintenance of Rolling stocks.”

He went on: “For adequate credit enhancement, it is advisable that the company that manages or builds the track, also operate the rolling stocks. To complement the present scenario, State Governments and Local Governments should be given the right under an enabling law to invest in railway business without hindrance.”

Calling for the redrafting of the Bill, the NSE said states and LGAs that desired to improve the sections of the rail network within their geographical area could form companies to operate the current system and also enlarge the rail network within their area of jurisdiction, alone or in conjunction with proximate states and LGAs.

On need for a railway regulatory agency, the NSE boss said the Bill failed to provide for a regulatory body that would perform regulatory functions in the rail sector as is the case in the telecommunication industry in the Nigerian Communications Commission (NCC). “The Bill rather provides that regulatory functions will be performed by the Nigerian Railway Corporation. Therefore, it is anything but international best practice.  There should be a distinction between who implements, who operates and who regulates.”

On PPP, the NSE argued that for the proposed Nigerian Railway Corporation Act to be virile and efficient, a Public-Private Partnership (PPP) policy framework should be put in-place to guide administrators on the PPP arrangement and implementation guidelines to be adopted in the restructuring of the Nigeria Railway Corporation. This PPP framework should be specific to the Railway Industry.

He said: “In modern railway administration, as supported by international best practices, the responsibilities for safety, security, accidents and investigation are no longer vested in the Inspector of Railways. Rather these issues come under a Railway Safety Regulatory Agency that will be separate from the proposed Nigerian Railway Corporation. This body will be responsible for investigating the causes of accidents and for making recommendations based on lessons learnt.”