Between 1999 and 2007, local and international views indicated the need for better infrastructure for rail transport in Nigeria. Within this period, former President Olusegun Obasanjo contributed his quota to the development of the transport sector. To his critics, the efforts were not enough to set the country on a good footing towards maximum benefits of the sector on the Gross Domestic Product during his tenure.
Before his administration was abruptly ended due to his death, former President Umar Musa Yar’dua was also seen as one of the past leaders who made significant efforts in the sector. The immediate past President Goodluck Jonathan revived the political will of making the sector works with construction and launching of some rail routes in some part of the country before his tenure ended in 2015.
Information has it that these administrations spent billions and trillions of Naira and Dollars on infrastructure provision and purchase of locomotive engines. One of the information shows that from the preceding years to 2013, an estimated N3.7 trillion was spent on the railways. The huge spending would continue as long as administrations identify the need for building the sector in relation to the GDP growth and other macroeconomic indicators. The construction of Lagos-Ibadan route has been completed. Kaduna-Kano has commenced in addition to other routes being considered by the President Muhammadu Buhari administration.
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Previous spending has indicated a link with the economic growth. For instance, there was a positive and significant impact on GDP between 1970 and 2018. With everyday public interest in traveling using Lagos-Ibadan and Kaduna-Abuja routes, there is a strong indication that the sector will continue having an impact on the GDP growth. However, sustained growth is not only the role of the government, private sector also has significant and specific place in advancing the rail transport system across the country. Therefore, this piece examines some areas where facilities management companies and professionals could support the government in its drive of building better and sustainable rail transport infrastructure.
Exhibit 1: Percentage Change of Revenue Generation from Q1, 2019-Q1,2020-Q1,2021
The Core Business
From our checks and the views of professionals in the built environment who spoke with our analyst, it emerged that rail infrastructure vandalization and constant breakdown of some locomotive engines have remained the core problems since commencement of rail transport services. The breakdown of the locomotive engines occurs mostly on Kaduna-Abuja route, while vandalization and stealing of the tracks are big issues, especially in locations where works are still going on.
Our analyst notes that considering activities of some facilities management companies which established their ability and capability of offering hard FM solutions to industrial businesses, there should not be significant hindrances to developing appropriate solutions to the challenges. Creating the right solutions in collaboration with the government agency saddled with the responsibility of managing the sector would help in reducing possible low interest in using the transport system by people and businesses.
Our proposition needs urgent consideration as it is evident that public interest in buying railway tickets is connecting with their interest in understanding the breakdown of locomotive engines. This is not quite different for stealing and destruction of rail tracks. Beyond these, Nigerian FM brands also need to consider provision of solutions that would enhance better experience of passengers at various stations.
For instance, technology-driven security service will alleviate passengers’ fear of being attacked by miscreants or armed robbers. Exploring these core areas might not need reengineering of FM brands’ business model. However, there might be a need for reinventing hard solution creation model. This is imperative because maintaining and managing rail transport system require better understanding of how rail transport system works.