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Transport Minister Calls for Increased Rail Sector Funding

Kehinde Fajobi

The Minister of Transportation, Said Alkali, has emphasised the need for increased funding in the rail sector to build a more efficient transportation network across Nigeria.

Speaking before the National Assembly Joint Committee on Land Transport on Thursday, Alkali noted that the ministry is committed to realising Nigeriaโ€™s Integrated Infrastructure Master Plan, but the lack of sufficient funds has hindered progress.

โ€œThe ministry and its agencies resolved to work hard at ensuring the realisation of Nigeriaโ€™s integrated infrastructure master plan which accommodates the rail modernisation projects and road transport/mass transit projects,โ€ Alkali said.

โ€œHowever, the ability to meet the target is significantly challenged by the funding gap, especially against the background of dwindling revenue accruing to the country.โ€

He explained that the ministry faces limitations in executing projects due to the challenges in securing counterpart funding through loans and is reliant on yearly budgetary appropriations.

Alkali revealed that the 2025 budget proposal for the ministry is โ‚ฆ225,744,028,687 billion, with โ‚ฆ223,803,230,485 billion allocated for capital projects and โ‚ฆ1,940,798,202 billion for overhead costs.

The minister further emphasised the necessity of increased funding to meet the demands of the railway transport sub-sector.

โ€œIn the railway transport sub-sector, an increase in funding is needed to meet the realization of an adequate and functioning railway transportation system,โ€ Alkali stated.

He appealed to the National Assembly to support the ministryโ€™s funding needs to ensure the successful continuation of ongoing projects and the initiation of new ones.

Alkali stressed that efficient transportation is crucial for economic growth, stating, โ€œSupport was critical to realising efficient transportation, which is globally recognised as the enabler of economic growth and gateway to the nationโ€™s economy.โ€

The minister also clarified the status of the proposed Lagos-Abuja superhighway, stating that the project, which is being pursued under a Public-Private Partnership (PPP), is not funded through appropriation.

โ€œFor the Lagos-Abuja super highway construction, Geofocus is a company that approached the ministry for a PPPโ€ฆ but the project is not to be funded through appropriation,โ€ he said.

Senator Adamu Aliero, Chairman of the Senate Committee on Land Transport, expressed his support for increased funding to expand the rail network, acknowledging the governmentโ€™s efforts in modernizing the railway system.

โ€œWe commend the government for what it is doing about railway modernisationโ€ฆ The only problem we have is the funding gap,โ€ Aliero said.

He added that the railway is crucial for Nigeriaโ€™s future, emphasizin6g that without proper investment in rail, road infrastructure would continue to deteriorate.

โ€œThe only reliable means of transportation is the railway. It is cheaper and more affordable.โ€