SW Regional Rail/Electricity Project: The Game Changer, By Tunde Abatan
The scriptural saying, “There is a season and a time for every purpose under the heaven”(Ecclesiastes 3) could not be more appropriate for the government and people of the South Western part of Nigeria than now.
It is now because having lost the opportunity in 1958 to effect a regional railway and power system for the region during the apogee of the then development-focused government led by the late sage, Chief Obafemi Awolowo, the region’s development strides have been arrested.
It has since been breathing under the burdensome weight of the military government which terminated it’s autonomy in 1966 with a Unitary constitution.
Had the region implemented the project then, today the story of the region being the rallying point of economic development of Nigeria would have been better imagined.
The South West region would today have added more feathers to it’s pace setting developments in the area of education, sports and entertainment which today remained unrivalled.
But then, it is not too late than never.
Hence, the historic decision of the six states of Ogun, Oyo, Lagos, Osun, Ondo and Ekiti April 26,,2023 to take a step further to concretise what it’s baby the Development Agenda for Western Nigeria, DAWN has earlier proposed in November 2020 is heart warming.
It will be recalled that the agency had then proposed the development of a Rail system to transverse 44 cities and towns which made up the South West states. It is unique and fundamental.
Also very unique and game changer is the decision by the six states known for pioneering great development strides in the country is the decision to zeroed in on President Muhammadu Buhari’s courageous last minute ascension to the Electricity and Railway Act 2023, which effectively removed Railway and Electricity from the Exclusive list.
By this, he has decentralized the operation of power and rail system among others in the country.
That the six states which total contribution to Nigeria’s Gross Domestic Product, GDP, of the country stands at 37% percent today could put pen to paper and become the first state to kick start as usual development in the two sectors is a fundamental step.
When implemented, the project will increase its contribution to GDP by 13% thus making 50% of the nations GDP.
That the two -day conference hosted by oil producing Ondo State Investments Promotion Agency(ODSIPA) on April 25 and 26,2023 could agree to ask all the six states to each build projects in the two sectors and build interconnectivity among them is a serious demonstration of intent.
For once, the two projects will not only boost transportation and movement of people in the region, it will also boost trade, lifting of agricultural products, creation of thousands of job and fast track infrastructural development in the region known as pace setters for others in the country since the period before independence.
If the words of Seye Oyeleye, the Director General of the DAWN, which initiated the project with regional business giant, Odua Investment is faithfully implemented, it will help revive its 200 manufacturing sector which has been sent into limbo over the years.
Still, in the era of infrastructure, Oyeleye spoke of advantages to be tapped by the six states from the African Development Bank, ADB, road project being executed to connect Lagos with the West African sub-region.
Besides, rail connectivity will also link the region cash crop farming community to other West African states and increase its hitherto limited capacity and consequently the multiplier effect on other sub-sectors of our comatose economy.
Should the new Federal government led by President-elect Bola Tinubu to implement it’s campaign promise to return Marketing boards to the country ,then the regions farmers are on their way back to the Golden era of the 50s and 60s when Cocoa and other cash crops lifted the economy and made it most thriving in Nigeria.
Recall that in the 50s the regional budget of the then Western Region was $55million British pounds higher than the then Federal government’s $50million British pounds budget.
The integration of South West population of 45million with rail criss- crossing 44 urban cities and towns will also enable it to contribute significantly if not maximally to reap from the N4billion,(Four billion naira) daily food consumption in Lagos, a mega city of 20 million residents.
This has more than contributed to making it fifth largest economy in Africa.
Oyeleye is of the view that the new Act, has removed the previous constitution which, “is hindering development” adding this must change.
As for him, if implemented, the rail system will attract investors as the region will be earning so much from neighbouring west African states.
In another breadth, the implementation of independent power projects among and between the six regions will greatly solve the perennial power outage which has not led to the death of many of it’s over 200 manufacturing concerns; thrown thousands out of job redefined the natural economic activity of the region and turn it into a dumping ground of fake products with it’s debilitating effect on its citizenry .
Generation of enough electricity will have a multiplier effects on agro- based industries .
Today, Nigeria with a population of 200million requires 30,000 megawats of electricity to power it’s industries and domestic use but only has the capacity to generate only 12,522 megawatts.
Out of this, it could only generate 4,103.11mw/h .
In the past three weeks, the above figure has also dropped by more than 40% ,throwing the country into a serious energy crisis, three months after a debilitating petroleum scarcity and a self- induced cash crunch.
That itself was a product of a faulty naira redesign project.
What is the way out.?
A way out after the federal government has sunk a huge chunk of N1.7trillion already on the privatized power sector with nothing to show for it but darkness.
Today, only 57% of the country have access to electricity while only 31% of the rural areas has access to power.
The effect of this is that in spite of more money pumped into the sector, the majority of the rural areas in the six zones of the country of which South West is one, has no access to electricity .
This is happening at a time when the chief executive officer of the Rural Electrification Agency, Engineer Ahmad Salihijo,38, allegedly has 37 personal bank accounts traced to his name in the midst of suffering of rural areas of the country.
In the SW, the gain of unbundling the sectors which Buhari has done and on which the states have capitalised, is that the regions will reduce their dependence on nation grid, drive it’s own industrialisation and urbanisation and agro allied policy for optimum development.
This is so since the project will be a private sector funding initiative.
Another area where the six states could draw strength is the ability to tap electricity on agreed basis from the near comatose Upper and Lower Ogun/ Osun River Basin Development Authority and the abandoned Ikere George Dam which two turbines alone can generate hydro- power electricity for it’s immediate environment . It has since rusted away after abandonment for 40 years.
The project it will be recalled, was flagged- off by the Shehu Shagari government in 1983 but left moribund with rusty and outdated equipment.
It was intended to support fishing and provide irrigation of Oyo state and the local community and hence boost agriculture in the area.
With the DAWN initiative, the six states can fully integrate existing and abandoned power projects in the region and tap same to cater for it’s needs.
However, the point has to be made that the funding for the two strategic projects has to be source from local and foreign investors and not tied to states budgeting process if it will not hit the rocks.
In this light, the Odua Investment Company ,a purely business venture owned by the states and the DAWN should be made to develop business model with specific legal framework involving the states to ease operation and remove other encumbrances.
An example in this direction is the development of Cowry card by the Lagos state government which has streamlined payment for services on its transport model-road, rail and sea.
If implemented, such cards should integrate payments system for both rail and electricity in the six states such that commuting and power should be made easy.The project is poised to be a real Game Changer as other five geo -political zones in the country could develop and evolve it in their region to gradually remove over dependence on the federal government.
This dependence has over the years encouraged massive corruption and stultified development of the various components of the country.
This if done, will move Nigeria forward and prepare it for the 21st century.
