Business

Abuja-Kaduna train breakdown: A taste of the Chinese pudding

Published

6 years ago

November 30, 2020

The Abuja-Kaduna train breakdown that happened last week presents a good illustration of the age-old adage that says: the taste of the pudding is in the eating. From all indications, the taste of the pudding which China is cooking for Nigeria is beginning to emerge already.

For over ten hours, some Nigerians were stranded in the middle of no-where, abandoned in the bush as a result of a failed locomotive. The train ride with all the luxury it purports to offer left a very sour taste in the mouths of the passengers, as they were buffeted by hunger and thirst for several hours, not to talk of failed appointments and the deep fear of being kidnapped due to high level of insecurity around that corridor.

There can be no gainsaying the fact that the breakdown of the locomotive is a foretaste of what is to come. The incident seems to tell Nigerians what the situation will be in the next five to ten years. Unfortunately, a taste of it couldn’t wait. As the transportation minister, Rotimi Amaechi, has said the embarrassing incident is so early in the day, and is quite unexpected. We quite agree with him. If this can happen at this time, less than one year of operation, one can imagine what the case will be in the next ten years.

True, the breakdown of the locomotives was not expected at this time by Amaechi and the government of the day. This is because the Nigerian government officials either trust the Chinese so much or have chosen to underestimate or ignore the famed craftiness and propensity of the Chinese to cut corners. On the other hand, it could be because Nigeria has become a beggar before China, and as the saying goes, a beggar has no choice. In that light, she must take whatever China throws her way.

Indeed, one cannot talk about the train breakdown incident without talking about how the contract that gave birth to it was procured, same with other ongoing rail projects across the country.

These rail projects are being executed with loans from China. The loans are tied to projects and disbursed by the China EXIM Bank, with the interest said to be subsidized by the country’s Ministry of Commerce. The commerce ministry assigns Chinese contractors to execute projects.

With such an arrangement, the project becomes entirely Chinese affair. The money barely gets into the hands of Nigeria since the loans are offered in the form of projects. Thus, most of the funds given out actually go back to China by way of supplies, salaries, allowances and housing of top and middle-level manpower, construction contracts and the whole equipment which are brought in from China.

With all the equipment, including the locomotives coming from China as part of the loan deal, Nigeria is not in a position to know or determine the competitive cost and quality of the equipment. Nigerian negotiators will not know if the shiny locomotive is new or refurbished. All they do is to celebrate the arrival of the locomotives from China, and when everything is put together, they assemble to commission it with fun fare. How long the locomotive or equipment will last is another issue as there is no performance bond signed.

With what has begun to emerge so early in the day, one is afraid how Nigeria will be able to repay the loans, given envisaged breakdowns which might impact on the operation of the railways. The breakdowns, if they become frequent and severe, may render some rail lines unviable, and therefore, disposed to take-over by the Chinese. The story of China loan/infrastructure projects in the developing countries especially, Africa presents a frightening scenario.

Across the African continent, in most of the transactions with China, corruption or kickbacks by government officials have been alleged. The loans are largely concessionary with lots of suspected undercover dealings and perks in favour of African government officials. These come in form of huge kickbacks, which largely do not go through the banking system.

The presence of the kickbacks indicates that the actual cost of investments in the projects will actually fall far short of negotiated loan amounts. This is a cause of worry concerning future default on these Chinese loans.

Another source of worry is the opaqueness of the Chinese projects and loans across all jurisdictions. In every country that China has shown its ‘magnanimity’, all the infrastructure of roads, ports, highways, railways and airports financed with these loans all connect to China in what has been aptly described as the “new silk road.” This means, perhaps, that these infrastructures are forever tied to China.

One curious thing is while China can give Nigeria refurbished locomotives or inferior equipment without batting an eyelid, it is willing to ‘donate’ to her a transport university said to worth $50 million. The amount even a kindergarten pupil knew that might have conveniently built into the inflated cost of the railway projects.

This is similar to its donation of a mighty Secretariat to the African Union Commission in Addis Ababa, Ethiopia – a gesture which has provided it a good launching pad to gain easy access to virtually all African countries, offering them irresistible loans that are tied to projects. The secretariat was also rumoured to be a mine of classified information for Chinese as they allegedly installed high tech spying gadgets all over the building during its construction.

While the Minister of Transportation, Rotimi Amaechi, and the managing director of NRC Fidet Okhiria, have apologized to Nigerians, with the NRC MD promising that the breakdown will not occur again, Nigerians remain skeptical of what the future holds for all the Chinese largesse for Nigeria.

* Business & Maritime West Africa Saturday Editorial

Aviation

20-Year MMA2 Concession Battle Ends, Boosting Nigeria Aviation PPP Outlook

Published

1 day ago

June 23, 2026

Trends Admin

Murtala Muhammed Airport Terminal Two (MMA2), Lagos

20-Year MMA2 Concession Battle Ends, Boosting Nigeria Aviation PPP Outlook

The Managing Director and Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has described the resolution of the long-running concession dispute over the Murtala Muhammed Airport Terminal Two (MMA2), Lagos, as a major breakthrough that will strengthen investor confidence and reshape public-private partnership (PPP) frameworks in Nigeria’s aviation sector.

Kuku made the remarks at the African Air Transport Convention & Expo 2026 in Lomé, Togo, where she emphasized that successful aviation infrastructure delivery depends not only on funding, but also on strong institutions, regulatory certainty, and consistent policy implementation.

Her comments come after confirmation that the federal government has finally resolved a nearly 20-year concession dispute with Bi-Courtney Aviation Services Limited (BASL), operators of MMA2.

The MMA2 concession dispute, which began in the early 2000s, has been one of the most controversial cases in Nigeria’s aviation sector, shaping discussions around airport privatization and PPP agreements. According to reports, the resolution includes a settlement in which BASL will forgo a N130 billion judgement debt, while retaining responsibility for developing a conference centre opposite the MMA2 terminal. The deal effectively ends years of legal battles, regulatory disagreements, and operational uncertainty surrounding one of Nigeria’s most important airport infrastructure projects.

Kuku described MMA2 as one of the most widely discussed concession projects in Nigeria’s aviation history, noting that it generated prolonged uncertainty for investors and policymakers. She said the conclusion of the dispute sends a strong signal to investors that Nigeria is committed to stabilising its aviation PPP framework and improving contract enforcement.

20-Year MMA2 Concession Battle Ends, Boosting Nigeria Aviation PPP Outlook

Business

Naira Strengthens Again, Narrowing Gap with Official Exchange Rate

Published

1 day ago

June 23, 2026

Trends Admin

Naira Strengthens Again, Narrowing Gap with Official Exchange Rate

The Naira recorded fresh gains against the United States dollar on Monday, appreciating to N1,394/$ in the parallel market from N1,405/$ recorded at the close of trading last weekend, signaling continued stability in Nigeria’s foreign exchange market.

The local currency also strengthened in the Nigerian Foreign Exchange Market (NFEM), where it appreciated to N1,369/$, according to the latest data released by the Central Bank of Nigeria (CBN).

CBN figures showed that the indicative exchange rate improved from N1,371.50/$ at the previous close to N1,369/$, representing a N2.50 appreciation for the local currency.

The development further narrowed the gap between the official and parallel markets to N25 per dollar, down from N33.50/$ recorded last weekend, a trend analysts say reflects improving confidence in Nigeria’s foreign exchange market and reduced speculative pressure.

Despite the appreciation, trading activity slowed during the session. Interbank turnover in the NFEM declined by 63.4 percent to $65.2 million, compared with the previous trading session, indicating lower demand for foreign exchange even as the naira gained value.

Naira Strengthens Again, Narrowing Gap with Official Exchange Rate

Auto

Officers Abroad Benefit as FRSC Promotes over 10,000 Personnel in Tech-Driven Exercise

Published

2 days ago

June 22, 2026

Trends Admin

Officers Abroad Benefit as FRSC Promotes over 10,000 Personnel in Tech-Driven Exercise

In a major demonstration of its growing reliance on technology, the Federal Road Safety Corps has conducted a nationwide promotion exercise, enabling officers on academic programmes overseas to participate remotely while deploying surveillance cameras and independent observers to ensure transparency.

The promotion exercise, described by the Corps as one of the largest and most technologically advanced in its history, benefited more than 10,000 personnel.

It covered 3,597 Intermediate Rank Officers and 6,408 Junior Officers across the country, according to a statement issued by the Corps Public Education Officer, Deputy Corps Commander Osondu Ohaeri.

The exercise was conducted under the leadership of the Corps Marshal, Shehu Mohammed, and formed part of ongoing efforts to modernise personnel management and ensure merit-based career progression within the organisation.

A major highlight of the exercise was the successful inclusion of FRSC personnel pursuing academic and professional programmes outside Nigeria.

Through the deployment of advanced Information and Communication Technology (ICT) platforms, officers on study leave abroad were able to participate in the promotion process remotely without disrupting their educational activities.

The Corps said the initiative underscored its commitment to ensuring that no eligible officer was denied career advancement opportunities because of geographical location or personal development commitments.

“This development demonstrates the Corps’ resolve to remove barriers to promotion and create an inclusive system that rewards excellence regardless of where personnel are located,” the statement noted.

To guarantee fairness and credibility, the FRSC introduced real-time monitoring mechanisms, including surveillance cameras deployed across all examination centres and independent observers drawn from the Office of the Secretary to the Government of the Federation and the Federal Character Commission.

The exercise commenced on June 14, 2026, simultaneously across the Corps’ 12 Zonal Commands, with representatives of the Corps Marshal overseeing proceedings to ensure strict compliance with established standards.

The FRSC, the technology-driven promotion system eliminated many of the traditional bottlenecks associated with promotion exercises, enhanced operational efficiency, and provided all eligible personnel with equal opportunities to compete based solely on merit, competence, and performance.

The Corps further stated that the successful conduct of the exercise reflected Corps Marshal Mohammed’s vision of building a highly motivated, professional, and future-ready workforce where hard work, innovation, commitment, and excellence are consistently recognised and rewarded.

Under his leadership, the Corps noted, significant reforms have been introduced to improve personnel welfare, strengthen institutional capacity, and leverage technology to enhance service delivery and internal administrative processes.

The FRSC said the promotion exercise has further boosted staff confidence in the organisation’s career advancement system, while encouraging greater productivity, accountability, and healthy competition among personnel.

The Corps described the successful completion of the exercise as another milestone in its drive to institutionalise global best practices and transform the agency into a modern, digitally driven organisation capable of meeting contemporary public service demands.

It maintained that the promotion process reinforced the principle that professionalism, dedication, and outstanding performance remain the primary pathways to career advancement within the Corps, while supporting its broader objective of building a motivated workforce committed to safer roads and improved service delivery for Nigerians.