Business
Train passengers stranded, NRC loses millions as unions strike
The three-day warning strike embarked upon by workers of the Nigerian Railway Corporation (NRC) has grounded train services across the country.
Passengers for the Abuja-Kaduna train services; Lagos-Ibadan, among others, were stranded on Thursday as railway unions down tools to press home their demands for improved welfare.
The Nigerian Union of Railway Workers (NUR) and the Senior Staff Association (SSA) had jointly issued a statement saying the warning strike, which commenced yesterday will end on Saturday.
Officials of the unions said the ongoing strike action was to send a warning signal to the right quarters to heed their demands for improved welfare and standard condition of service.
They said their take-home pay was bad and needed an upward review. The unions said failure to address their grievances would be followed by protracted strike action.
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Daily Trust reports that rising insecurity has recently made trains the preferred choice of transportation for many Nigerians especially from Abuja to Kaduna, Lagos to Ibadan, among others.
There are concerns that the corporation would lose millions of naira because of the strike.
How negotiations collapsed
The railway unions and the management of NRC had engaged in a series of meetings to avert the strike without reaching an agreement. Even the last week’s meeting with the Minister of Transportation, Rotimi Amaechi, was deadlocked, it was learnt.
Daily Trust observed that the Abuja-Kaduna train service was grounded as scores of passengers caught unaware were stranded at the Idu Train Station in the FCT. Many of them had to look for alternatives.
“I am not aware of the strike,” said Olayinka Joseph, a passenger. “I just came to the station to travel to Kaduna and discovered the railway staff were not working,” she said.
A Zaria-bound Ibrahim Audu was also frustrated.
“I took a taxi and paid N1, 500 to the train station but all the offices have been locked. It means I will spend another N2, 000 or more to go to the park in Jabi to begin to look for a vehicle to Kaduna,” he said.
Another passenger, Hassan Ismaila, said he would cancel his trip till Sunday when the staff would have resumed. He also said the NRC unions should learn how to publicise their strike well ahead of time so that passengers could be better informed.
“I prefer the Abuja-Kaduna train to cars because of the insecurity along the road,” Halima Ibrahim, who frequents the route, said.
“Honestly, it is too early for the railway workers to join other unions who believe a strike is the only option to press home their demands,” she said.
“Conversely, it means the government is not serious by allowing simple issues to degenerate to self-help. Remember, railway revitalisation is one of the showcase projects of this administration; they should take it seriously,” she said.
In Lagos, the protesting workers on Thursday shut the Mobolaji Johnson Train Station and other train services. The workers sang solidarity songs bearing placards reading, ‘Good salaries bring better results, bad salaries kill morale’; ‘Railway workers’ salaries least under the FMOT – (Federal Ministry of Transport)’, among others.
“Thousands of people who rely on rail transportation would arrive at our places of work very late,” Said Shakiru Ma’aruf.
“The train helps a lot and to a greater extent reduce the pressure on the roads occasioned by traffic gridlock. I am not happy those concerned allowed this to happen,” another passenger, Helen John, said.
General Secretary NUR, Comrade Segun Esan, said, “When you value the whole of the infrastructures, the whole of the assets in train service, starting from the locomotive, the coaches or the locomotive and the wagons, it is clearly over and above N2.5bn and the driver you are asking to drive such equipment is being paid a paltry amount as low and as so unbelievable as N26, 000, N30, 000, N36, 000 as the case may be! It doesn’t augur well.”
Daily Trust reports that the minimum wage in Nigeria is N30,000 and many wondered why NRC workers would be paid below that if the claim by the general secretary is true.
NRC may lose N100m
Meanwhile, the strike action will cost the NRC huge sums in economic losses daily. Checks by our correspondent showed that the NRC might lose over N57 million in the three days the strike action will last on the Abuja-Kaduna train service.
This paper estimated that it may lose up to N30m in the Lagos axis (Lagos-Ibadan and the intra-city train services) and about N13m on the Itakpe-Warri rail service.
The NRC will lose about N19m daily from its almost 5,000 daily passenger traffic on the Abuja-Kaduna corridor except on Wednesdays when it operates limited scheduled services due to maintenance programmes on the locomotives.
The NRC runs 12 coaches on the corridor using two Diesel Multiple Units (DMU) purposely for the express services. It operates up to eight trips on the corridor: four from Abuja and four from Kaduna. The economy coaches carry up to 88 passengers whilst the business class coaches carry up to 56 passengers.
The NRC charges N2, 600 per seat for the economy class (N3, 000 for express service) and N5, 000 for business class.
Cumulatively, it makes between N15m to N19m depending on the passenger traffic.
The in-train food vendors who make over N100, 000 daily would also lose while the about 100 cabs operating at the Idu Station alone could lose N1m daily.
The big losers apart from NRC would be the cab operators in Idu, Kubwa and Rigasa train stations which witness the largest traffic on the corridor.
Small businesses dealing in food vending, POS services, snacks, drinks and other small businesses will be counting losses without succour. Their potential losses could not be exactly established.
For the Lagos axis, the NRC would be losing an estimate of about N10m daily on the Lagos-Ibadan axis due to the strike embarked upon by railway workers.
In Lagos district where the NRC operates the newly launched Lagos-Ibadan standard gauge, the Lagos-Ogun intercity train services as well as the evacuation of cargoes from the port, the corporation is estimated to be losing over N10m daily. This is calculated on the estimated number of passengers on the services.
For the Lagos-Ibadan Train Service (LITS), about 1,000 passengers use the train daily and at an average of N2, 600 per passenger on the Economy Coach, NRC would lose N2.6m. For the intercity from Lagos to Ijoko, NRC conveys over 10,000 daily and at an N460 flat rate, it loses N5m daily.
We’re engaging unions – NRC
The Manager of the Abuja-Kaduna Train Service, Mr Pascal Nnorli, said the strike has crippled all train activities adding that the NRC management will further engage the unions to resolve the matter.
He also indicated that the matter might also involve the National Salaries, Wages and Income Commission, which has the constitutional power to review the work conditions of federal government workers.
Daily Trust
Railway
Lagos Rail Mass Transit part of FG free train ride – NRC
Lagos Rail Mass Transit part of FG free train ride – NRC
The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.
The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).
This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.
While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.
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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.
“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.
Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.
He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.
Lagos Rail Mass Transit part of FG free train ride – NRC
Business
NNPC denies claim of Port Harcourt refinery shutdown
NNPC denies claim of Port Harcourt refinery shutdown
The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.
The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.
Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.
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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.
“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”
He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”
NNPC denies claim of Port Harcourt refinery shutdown
Business
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.
The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.
The arrangement will be in effect from December 19, 2024, to January 30, 2025.
Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.
Transactions to occur at the prevailing NFEM rate
The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.
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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.
The circular read in part:
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).
This window will be open between December 19, 2024 to January 30, 2025.
“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”
The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”
These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.
This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
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