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afrol News, 14 March - Nigeria used to take pride in its railways network, the largest on the continent. Now, it is hopelessly outdated and produces great losses. The decision to privatise the Nigerian Railway Corporation (NRC) therefore does not come as a surprise to anybody. - There is need for modernization of the Nigerian Railway System which is still based on the prevailing technology at its inception early in the century, according to the Nigerian Ministry of Transport. The needs are great, and the government is looking for investors. NRC needs upgrading of the 3" - 6" (1067mm) gauges, a modernisation of track maintenance and a conversion of wagon bearings and trains. According to the federal Minister of Transport, Alhaji Isa Yuguda, who made an interview with the Nigerian daily 'The Vanguard' in Abuja, the NRC has appointed the Canadian Management Consultancy firm, Kana, to mandate to prepare for its privatisation. The Canadian consultants were also expected to "add value in terms of restructuring, which is to fall in line with the general standard of what a well managed railways are anywhere in the world, like the one we have in Canada and then in due course, prepare the railways for privatisation," Minister Yuguda told 'The Vanguard'. Yuguda described the Nigerian railways as being "in comatose" until now, but recent investments and the privatisation was to revitalise the ancient proud of Nigeria. New tracks are already being laid on several lines and the Lagos local railway services have been modernised to meet urban and suburban needs. The Nigerian government recently privatised and sold NITEL (Nigeria Telecommunications Ltd) to foreign interests. The privatisation of the Nigeria Airways however failed in May last year after the Nigerian government and the International Finance Corporation (a private arm of the World Bank) failed to agree on the terms of the privatisation. The National Assembly had called for Nigeria Airways not to be privatised claiming it could cost the government about 75 million euros to write-off the airline's debts. The costs of privatising the Nigerian railways are not known, but investors will expect substantial government aid. Sources: Based on Nigerian press and govt. and afrol archives
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