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

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
Business
Bitcoin turns Crypto market pink, Investors flee to U.S. Dollar

Bitcoin turns Crypto market pink, Investors flee to U.S. Dollar
Bitcoin’s correction below $96,000 has caused the cryptocurrency market to turn “pink.”
This most recent rally is by no means inconsequential, as retail and institutional data indicate waning demand.
Although the asset seems to be moving independently of the fundamentals of cryptocurrency, it is being influenced by an unpredictable macroeconomic environment.
Bitcoin is still gaining attention, even though trade tensions between the U.S. and China are causing market jitters. Derivative structures, sentiment indicators, and investment flows all suggest a rise in caution.
The announcement of new Chinese tariffs on the world’s largest economy weakened risk appetite. Bitcoin immediately lost the bullish momentum that was part of a larger trend of people fleeing to safer assets in the face of trade tensions.
Although Donald Trump’s response, which imposed a 25 percent tariff on steel and aluminum, caused traditional markets to stabilize, the market swiftly recovered and regained confidence.
This political response also allowed Bitcoin to find some air. However, market fundamentals show that retail and institutional weakness indicators are present.
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According to the data, institutional purchasing volumes are not impressive. $204 million was invested in Bitcoin ETFs in the U.S. between February 3 and February 7, compared to $742.3 million worth of Bitcoin purchased by Strategy during that time. A definite sign that leveraged traders are lowering their exposure is the sharp decline in futures premiums, which went from 11% in early February to 8%.
Investors are choosing safe-havens, as evidenced by yield declines in U.S. Treasury notes. This momentum has made the U.S. dollar index show strength, reflecting an increase in risk aversion in international markets.
The U.S. Fed’s latest signals also show less incentive to cut rates quickly, further putting Bitcoin bulls in jeopardy.
U.S. Economy Supports Fed’s Caution
“Overall, the economy is doing well,” Jerome Powell stated at his Senate hearing on Tuesday, February 11, 2025. As a result, he defended the Fed’s monetary policy wait-and-see approach. Even though inflation is higher than the 2 percent target, the Fed does not anticipate any more rate cuts in the near future.
Monetary easing is anticipated to be restricted to 35 basis points by the end of the year.
The dollar fell 0.17%, or 17 points, and is currently trading at 108 index points on the greenback index in response to this cautious approach.
The spotlight now shifts to the inflation figures for January, scheduled to be unveiled on Wednesday.
If these figures indicate persistently elevated inflation, they might prompt the Fed to prolong its stringent policy, curtailing any optimism surrounding a vigorous reduction in interest rates.
Powell will continue his hearing before the House of Representatives, posing a fresh challenge for the market, which will strive to adjust its forecasts concerning the U.S. monetary policy’s trajectory.
The market is also dealing with a fresh rise in protectionism. The threat of a trade war with the European Union has been reignited by Donald Trump’s announcement of a 25% increase in customs duties on steel and aluminum imports.
The foreign exchange market reacted to these announcements immediately. The Japanese yen lost ground against the dollar, dropping 0.3 percent to 152.0, while the euro increased 0.22% to $1.03. Investors are looking to safe-haven assets in this uncertain climate, especially gold, which is seeing a resurgence in interest.
Global markets are becoming more tense as the Fed maintains its position and the White House toughens its trade stance.
Bitcoin turns Crypto market pink, Investors flee to U.S. Dollar
Business
Emirates, Air Peace in agreement to link 13 Nigerian cities

Emirates, Air Peace in agreement to link 13 Nigerian cities
As part of a comprehensive Bilateral Air Services Agreement (BASA) between Nigeria and United Arab Emirates (UAE), Emirates Airlines and Air Peace have signed an interline pact.
According to experts, the move would enhance connectivity for passengers travelling between Nigeria and UAE.
The experts described the partnership as one of the major steps to drive collaboration between foreign carriers and indigenous operators.
Emirates Airlines said in a statement yesterday that the partnership would expand its footprint to 13 new cities in Nigeria with frictionless single-ticket travel and simplified baggage throughput.
It explained that travellers booked on flights from Dubai to Lagos can access more of Nigeria, with onward connections to Asaba, Akure, Benin , Calabar, Enugu, Ilorin, Kaduna and Owerri.
The interline agreement will also benefit corporate travellers by connecting them to additional cities like , Kano, Uyo, Port Harcourt and Warri.
Adnan Kazim, Emirates’ deputy president and chief commercial officer said: This partnership with Air Peace is the next step on this journey, bolstering our connectivity and introducing more travel options for corporate leisure, and travellers visiting friends and family to and from Nigeria.’’
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Chief Operating Officer, Air Peace, Oluwatoyin Olajide, said: ,”We are excited about this strategic interline partnership between Air Peace and Emirates, which is a significant step towards enhancing global connectivity for Nigerian travellers.
‘’ It aligns with our mission to provide seamless, world-class travel experiences while expanding our route network and international reach.
“This partnership also reinforces Nigeria’s aviation sector by enhancing connectivity, efficiency and positioning our country as a critical hub for regional and global travel.’’
Once the implementation begins, it would be easy for a traveller to book an Emirates’ international flight from any of the 13 cities and be picked from the city by Air Peace to link up with Emirates Airline for the flight out of the country.
Nigeria and UAE are also set to commence a mutual air travel ties with the signing of an amended BASA between them.
Aviation and Aerospace Development Minister Festus Keyamo penned his name on behalf of Nigeria and UAE’s Minister of Economy Abdulla Bin Touq Al Marri for his country.
The ceremony took place at the ICAO Global Implementation Support Symposium (GISS) 2025 in Abu Dhabi.
Key areas agreed by both countries include expansion of codeshare agreements, capacity building and technical support, especially safety, airport facilitation and security.
Keyamo, in a statement yesterday by his Media Aide, Tunde Moshood, emphasised the importance of enhancing connectivity between Nigeria and the UAE with a focus on interlining opportunities for Nigerian airlines.
The minister also advocated a review of UAE’s visa restrictions on Nigerians. He stressed that easing the current conditions would increase passenger traffic on designated routes and benefit both nations.
Keyamo reaffirmed Nigeria’s readiness to work closely with the UAE to implement the agreement and ensure both countries maximised the economic and operational benefits of a strengthened partnership.
Emirates, Air Peace in agreement to link 13 Nigerian cities
Business
NNPC says Kaduna refinery is at 60% completion

NNPC says Kaduna refinery is at 60% completion
Going words of the Nigerian National Petroleum Company Limited (NNPCL), the Kaduna Refinery and Petrochemicals Company (KDPRC) has attained more than 60 per cent mechanical completion.
NNPCL Executive Vice President (Downstream) Isiyaku Abdullahi dropped the hint yesterday in Abuja during the NNPCL Workshop/Engagement session with Kannywood artistes.
He said the company has been working assiduously to deliver the refinery this year, adding that the state-run oil firm was simultaneously working on the pipelines with its in-house capacity.
Abdullahi said: “Kaduna in sha Allah should come on stream this year. We are working tirelessly for the pipelines. We are working on Kaduna.
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“God willing, it should come to stream this year. We are working tirelessly on the pipelines. We are doing in- house project; we have gone more than 60 per of mechanical completion.”
Abdullahi said: “All the three refineries work directly under my superintendence. And as you are aware, God has been wonderful with a good leadership that we have been able to revamp Port Harcourt and Warri Refineries.
“And by God’s grace, this year, we will deliver Port Harcourt Refinery.”
The EVC urged Nigerians to get prepared for the purchase of the Initial Public Offer (IPO) of NNPCL very soon.
He advised them to set aside some of their funds for the investment in oil and gas will is accountable for several derivatives globally.
Abdullahi said: “For all Nigerians, there is an opportunity. Very soon, we will go IPO. We will go public. Put certain amount of money aside so that come and get from oil and gas.”
NNPC says Kaduna refinery is at 60% completion
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