The Minister of Transportation, Senator Sa’idu Alkali, is working assiduously to direct the activities of the ministry to impact the economy and reduce cost of transportation by unbundling railway to allow for private participation and usage of Compressed Natural Gas (CNG) which is cheaper than petroleum and diesel. In this interview with some select newsmen, he spoke on his activities to fulfill the Renewed Hope agenda of President Bola Tinubu in the last one year. MUYIWA ADEYEMI was there.
What are the major things you achieved as Minister of Transport?
One, the mandate of the ministry is land transport, and we have some parastatals under the ministry. We have the Federal University of Transportation in Daura, Katsina State. We have the Nigerian Railway Corporation (NRC). We have the Institute of Transport Technology in Zaria and the main ministry.
Let me start with the university. When I took over as a minister, I said let me see where we are and where we need to be. I was in Daura for the inspection of the Federal University of Transportation. The university came into being as a corporate social responsibility by one of our contractors, CCECC.
At the time I took over, it was only the vice chancellor that was appointed. But when I went there, I saw a very beautiful edifice that I felt we needed to put the structure into use. So, I approached the National Universities Commission (NUC) to appoint a mentor university.
They appointed Ahmadu Bello University (ABU), Zaria. For a university to take off, at least we need four principal officers – the vice-chancellor, registrar, bursar, and librarian. So, with ABU, we had these officers to take off.
However, the university was not captured in the appropriation estimate of 2023. And we needed funding for the take-off. We approached CCECC to raise some funds for us. Having done that, we started outsourcing lecturers on visit. Then, we approached the Joint Admissions and Matriculation Board (JAMB) as to how to get the students admitted into the university. At that time, the portal for fresh admission was closed. We came through ‘Change of Institution’. Graciously, we got over 500 students after screening them for admission.
Thereafter, we approached Tertiary Education Trust Fund (TetFund) for their intervention; I met the Chief Executive myself. They gave us a checklist. Fortunately, the university was qualified for intervention against 2025. Graciously, President Bola Ahmed Tinubu later approved the enlistment of the university in the 2024 capital budget of the country. So far, the students are matriculated. As we speak, we have already finished part one. We were able to achieve this barely in one year. So, this is how far we have gone with the university.
Coming back to the Nigerian Railway Corporation (NRC), I visited all the projects after which, I went to see the President and briefed him of the activities of the ministry. He directed me to continue with all the ongoing projects under the railway modernisation.
I inspected Lagos to Abuja; Abuja to Kaduna; Kaduna to Kano, and Kano to Maradi. Before I became minister, already Lagos to Ibadan had been put into use for train service.
I got back to the railway and saw how we could start freight. We have two rail lines inside the APMT terminal in Apapa. We have the standard gauge and the narrow gauge. We started the freight on the standard gauge from Lagos to Ibadan. Then we started rehabilitating the old narrow gauge because there was some wash-away along Baro in Niger State. After the rehabilitation was done, we were able to commence freight from Lagos to Kano, so they will be able to put Kano inland dry port into use.
I’m sure that it is going to boost the economic activities and the Gross Domestic Product (GDP) growth of the country. So, we now came back again to see how we can continue moving the project from Ibadan to Abuja. Because Abuja to Kaduna is put into use, you can see there is a gap between Lagos and Abuja. The President directed Vice President Shettima to lead us to the Belt & Road Forum Initiative (BRFI) conference in Beijing. The Vice President had a bilateral meeting with President Xi Jinping. So, he made that case on behalf of the Federal Republic of Nigeria. As we speak, we are able to raise the funding. We are just about to get the first drawdown to fix Ibadan, Kaduna to Abuja.
When Mr President went himself for the Forum of China-Africa Cooperation (FOCAC) and made a case for Ibadan to Abuja, the President of China promised to intervene in raising the financing of Ibadan to Abuja. By doing so, you will be able to connect Lagos to Abuja, Abuja to Kaduna and Kaduna to Kano. We still have Kano to Maradi, but it was awarded to a different contractor.
In fact, in the last one year that I was here as a minister, I visited the project three times. They have done the earthwork and a lot of culverts. They gave us a commitment that they are going to fix Kano to Kaduna and a branch line to Dutse by next year. That is how far we have gone on Lagos to Abuja, Abuja to Kaduna, Kaduna to Kano and Kano to Maradi respectively.
Are you impressed with the level of work done so far?
Yes, I am impressed, even members of the National Assembly, who inspected the projects, were also impressed with the work done so far. They even addressed the media after the inspection.
We also have the Eastern narrow gauge. That one is to cover from Port Harcourt to Maiduguri. It traverses about five geopolitical zones. Port Harcourt is in South-South, Aba is in Southeast, Kaduna is in Northwest, and then the one in North-Central and North-East. At the time I took over, the project was just at the outskirts of Port
Harcourt.
I had to mount pressure on the contractor to see how we can fix Port Harcourt to Aba so that we will be able to start the train service. And I am sure if you have been to Port Harcourt recently, you can see how bad the road from Port Harcourt to Aba is. So, we were able to fix Port Harcourt to Aba for train service.
We now came back to see how we can now continue with the project to fix Port Harcourt to Onne, and Port Harcourt to Port Harcourt Port, so that we will be able to start freight from Onne to Aba. At least Aba is one of the viable commercial cities in the Southeast so that we will start freight.
Recently, an investor approached the ministry to see how we can start retrofitting our locomotives. You know you cannot do conversion with high-level engines like cars and generators. The only way we will be able to save cost, especially with the withdrawal of subsidy, is to start retrofitting the locomotive.
We have successfully retrofitted one locomotive, partly diesel, and Liquefied Natural Gas (LNG); about 80 per cent is LNG while 20 per cent is diesel. By doing that, you will be able to save a lot of cost.
In fact, we have reached a milestone with the investor so that he will bring some locomotives and some wagons to start freight in some of the corridors. That one, too, has reached an advanced stage.
Coming back to the NITT in Zaria, we have started conversion centres. We have one centre in Zaria and another one in Abuja. We are about to commence the one in Enugu and Lagos very soon. We are working hard to have conversion centres in all the 36 states of the federation.
Which of these feats do you think could enhance the prospects of the ministry in terms of contributions to the nation’s economic development?
Of course, it has to be all of them because each of the parastatals has its mandate. As I have briefed you, each of the mandates has its own impact on the economic growth and development of the country.
What effort is the ministry undertaking to address the multiplier effects of the removal of subsidy on petroleum products, especially in the transport sector, which is considered a strong pillar of the economy?
With the Institute of Transport Technology in Zaria, I told you we have started the conversion. Gradually, of course, the journey of 1,000 miles starts with one step. As we are making progress, we intend to cover all the states of the federation.
By the time you are able to achieve the conversion, I am sure if you have a car, the cost to refill the cylinder and the distance the cylinder is going to cover, you have about 300 per cent to 400 per cent savings compared to petrol or diesel.
What role does the ministry play in sustaining smooth industrial relations in the rail sector and the main relations among various trade unions and associations providing transport services in the sector?
The ministry has a role here because we are coordinating the railway sector, the transport sector. In fact, as we speak, we have approached the President for an intervention in the infrastructure, even on the road.
He has graciously approved construction of port terminals, one in each geopolitical zone. He has directed the Ministry of Transportation to liaise with the Ministry of Finance to continue funding the terminals through the International Monetary Fund (IMF). After constructing the terminals, he also directed us to concession the terminals for long-term viability.
On the railway as well, the ministry is having synergy with the National Assembly to see how we can unbundle the railway. By the time you repeal and enact the Railway Act, it allows private sector participation. For instance, if the private sector can come and invest in the sector, you bring your coaches, you bring your locomotive, and you bring your wagons. Then we concession a corridor for you, so that you start freight; you start train service. Also, the ministry has developed a land transport policy. We don’t have a land transport policy in the country.
We were in Abeokuta for the annual conference where we presented the draft report before all the stakeholders so that they would make their input. In fact, by the grace of God, in the next one or two weeks, we are going to take the report to the council for approval.
How are you synergizing with the Ministry of Marine and Blue Economy?
It doesn’t have to do with marine and blue economy, because it’s a land transport policy. I am talking about synergising in terms of transportation generally, from rail to water to air.
That is why we are very, very categorical that the policy is land transport policy, not transport policy. Assuming we said it’s a transportation policy, then it affects both land and water. But this one is very specific, national land transport policy.
Are the agencies under your ministry really delivering the presidential priorities?
Of course they are. All these I have mentioned are in the priority list of Mr President. The conversion centres, the takeover of the university, the freight service, the rail service, all these are his priorities; because even in the primary responsibility of government, welfare is one of them.
What key challenges did you encounter when you assumed office?
The key challenge is with the financing because this project was predicated on the Engineering, Procurement, and Construction and Financing (EPC+F) model. The Federal Government is to raise 15 per cent through appropriation, which Mr President has done, but it’s still difficult for the contractors to raise the financing. But we are gradually getting on top of the situation.
But there is the assumption that the transport ministry has a lot of money, so how come you have financing challenges?
It’s a contract. When a contract is predicated on EPC+F, the country is governed by rule of law; the government has done its own part through appropriation. The contractor is expected to go and raise the financing on behalf of the Federal Government. It’s already a contractual agreement, and you have to abide by it.
Lately, there have been incidences of rail derailment in some parts of the country. Are you worried, and what are you doing in that respect?
Of course, I should be worried as a minister. Some of them are human error, and some of them are technical. But when the incidents started, I called the Managing Director of the Railway and all the team of its engineers. And we have done a lot of things there, but because it’s a security issue, it’s not something I can mention here.
There’s this whole noise about Compressed Natural Gas (CNG) now. The Ministry of Transport is rarely mentioned in most of their events. The government has invested so much in this CNG? What part are you playing? Are you involved at all?
Of course I should be. As a minister of transportation, it is to have a synergy between the ministry and the presidential committee. Not only that, I told you, even our parastatal in the ministry, we have started the conversion from diesel to CNG, or petroleum to CNG.
A lot of Federal Government agencies have brought their cars, and we have done the conversion. The Nigerian Army has brought their patrol vehicles, and the institute has done the conversion because they have a conversion centre here in Abuja, from petrol to diesel. And when you are in difficult terrain, you revert to your petrol and keep moving.
