Assessing The Impact Of Railway Restructuring In Nigeria

Abstract

The study presents railway restructuring as a solution option to railway problems in Nigeria. It aims at ascertaining the efficiency of the critical input factors of Nigerian Railway corporation (NRC) while comparing it with that of the restructured developed and best practices railways to establish the basis for restructuring. A manpower survey was carried out. Benchmarking method was used to determine the best restructuring model for Nigeria. Descriptive statistical tools and simulation model were also used in carrying out the analysis. In this respect, we identified low investment, low technological capacity and capability, low productivity unreliable services, High operating ratios, weak administration, obsolete equipment and technology, low motivation and large labour force as the most severe problems to overcome. Against this background, the implication of railway restructuring in Nigeria for development was examined. The simulation results show that the restructured railways in Nigeria would save time, increase the number of traffic and increase revenue generation. The study concluded that there is a wide gap between NRC and the best practices and restructured railways as a result of the observed inefficiencies in all the critical input factors. We recommend among others the adoption of the concessional model, the repeal of the 1995 railway acts as amended to make the railway market in Nigeria contestable and viable.


JORIND Vol. 3 (2) 2005: pp. 42-51