In an exciting development for the Nigerian transportation sector, the Federal Government (FG) has unveiled its executive proposal for the 2024 Appropriation Bill. This proposal includes a significant allocation for the enhancement of the country’s railway infrastructure. The Nigerian Railway Corporation (NRC) stands to benefit from a substantial portion of this budget, earmarked for the purchase of new trains and the overall improvement of railway facilities.
Investment in New Trains and Railway Infrastructure
The FG has set aside a staggering N6,628,234,152 for the procurement of new trains, as part of the NRC’s budget for the fiscal year 2024. This investment underscores the government’s commitment to modernizing and expanding the nation’s railway network, a move that promises to revolutionize the transport sector.
The Ministry of Transportation’s Robust Budget Allocation
The Ministry of Transportation, the parent body of the NRC, has been allocated an impressive N80.714 billion in the proposed budget. This allocation is divided among various departments and projects under the ministry’s purview. The Transport Ministry headquarters is slated to receive N48.036 billion, while the NRC gets N24.044 billion. Additionally, the Nigerian Institute of Transport and the Federal University of Transportation in Daura, Katsina State, will receive N4.912 billion and N3.71 billion, respectively.
Focused Investment in Railway Construction
A notable N40.30 billion has been allocated specifically for the construction of railways across the country. This investment highlights the government’s focus on expanding and improving the railway network, which is a crucial component of the nation’s infrastructure.
Allocation Breakdown: Enhancing Rail Services
The budget allocation covers a range of projects and initiatives. Noteworthy among these is the earmarking of about N33 billion for pivotal railway projects. These include the completion of the Lagos-Ibadan rail line, rehabilitation of the Itakpe-Ajaokuta rail line, and the construction of various station buildings and track laying works at Agbor.
Railway Modernization and Safety Initiatives
The government has also allocated N1.5 billion for railway modernization efforts. In addition, N18 million is budgeted for enhancing safety through the identification and installation of speed reduction signage in high-risk areas.
Education and Construction for Road Safety
A further N10 million will be invested in ongoing education and the construction of speed reduction signage, aligning with the international road assessment program (IRAP) in collaboration with the Federal Capital Territory. This initiative underscores the government’s commitment to road safety and public awareness.
Comprehensive Budget for the Ministry of Transportation
The Ministry’s budget of over N80 billion encompasses various facets of transportation infrastructure. This includes a significant allocation for capital projects (N46.303 billion), overhead costs (N286.63 million), and personnel costs (over 1 billion). Additionally, the Ministry plans to invest N45 million to review the 25-year strategic plan for railway infrastructure, which includes aspects of design, construction, and operation.