The Federal Government in Nigeria announced that U.S. company General Electric (GE) would take over the management of the Nigeria Railway Corporation (NRC) under a concession plan between January and March 2017.
Minister of Transport, Rotimi Chibuike Amaechi, who made the announcement while speaking at the first International Transportation Conference, said that the 18-month window period before the take-over is within legal documents signed between the Federal Government and the American company.
Amaechi explained that the entrance of General Electric into the management of the nation’s rail system is to harness the full potential of rail transportation infrastructure in the country, in addition to creating new jobs.
Convener of the TGI Transportation Conference, Chief Osita Chidoka said the country needs to build its transport infrastructure to suit the demands of the future. Chidoka explained that the building of more roads alone couldn’t solve mass transport issue but that the nation needs diversification of transport modules like inland waterways and modern rail system.
Earlier in October, General Electric confirmed its a “keen interest” in acquiring a Nigeria railway concession project worth around USD 2 billion.
Nigerian President Muhammadu Buhari said this month that GE would be investing USD 2.2 billion in a concession to revamp, provide rolling stock, and manage some of the country’s railways.
The West African nation has also signed two deals worth around USD 5 billion with China Civil Engineering Construction Corp (CCECC), part of China’s state-owned railway construction firm, to modernize and build railways in the north and south of the country, the Nigerian transport ministry said in September.
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