Nigeria’s transport ministry has turned down requests to make public details of its recent concession of the Kaduna-Abuja rail ticketing, amid concerns over the valuation of the deal.
The Abuja-Kaduna rail line is one of the first standard gauge railway modernisation projects (SGRMP) undertaken in Nigeria, the most populous country in Africa.
The standard gauge line connects federal capital city Abuja with its commercial capital Kaduna, enabling faster movement of goods and people between the two cities.
The construction of the Abuja-Kaduna rail line was started in February 2011 and completed in December 2014 with China’s support. Nigerian President Muhammadu Buhari officially inaugurated the line for commercial services in July 2016.
The government announced in January that a private company will manage the electronic ticketing of the Abuja-Kaduna line for 10 years.
The company, SecureID Solutions, which developed the platform, paid N900 million and would run the platform for a decade to recoup its cost, authorities said.
N900 million paid by the concessionaire raised concerns as the line is estimated to generate as much as N15 billion in a decade.
At the launch, the Minister of Transportation, Rotimi Ameachi, said the initiative is a Public Private Partnership, and that the firm will hand the system back to the Nigerian Railway Corporation after the period.
The government said the initiative will address complaints about ticket racketeering, and will enhance efficiency, save time and promote accountability
The track is estimated to generate over N15 billion during the period of its being administered by the private firm, considering that revenue is likely to grow with the new platform blocking leakages.
Critics have raised questions about how the proceeds will be shared with the government, and the costs and margin of return to the company given the amount it paid.
”The contract appears ridiculous,” said Ajibola Tijani, team lead at Aqua Green Consulting and Construction company.
The Nigerian railway corporation has upgraded the Abuja to Kaduna train service with the addition of two trains and 10 more coaches. With this addition, the train number of trips has been increased from two to four trips daily. Also, the fare has increased a bit higher than what it was before.