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The Benefits Of China Transport Infrastructure Dev’t Loan To Nigeria

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News analysis by Taiye Elebiyo-Edeni,  (NAN)

Nigerian transportation industry which comprises aviation, land (road and rail), and maritime subsectors have faced challenges of infrastructure deficit since independence and successive administrations have taken steps to address these challenges. Since assuming office on May 29, 2015, President Muhammadu Buhari has taken giant strides to address these challenges across the transport sectors ranging from airport to rail.

The desire to address such challenges and boost economic activities in the country led to the negotiations between the government of China and Nigeria on getting funds to address the immediate transport challenges as well as to create thousands of direct and indirect jobs.

The first step taken by the Minister of Transportation, Rotimi Amaechi, was to complete the abandoned 276 km Itakpe-Warri rail line linking Warri in Delta State to Ajaokuta, in Kogi State for transporting steel products and raw materials from the Delta Steel Company, Aladja which is now completed after it was abandoned for 35 years. So far 13 coaches and four locomotives have been deployed to the route for the commencement of commercial activities.

The other project completed was the Abuja-Kaduna Modernisation rail line which was funded with the $500m China loan collected by the former President Goodluck Jonathan administration in 2010 for infrastructural development in the country.

However, with the coming on board of Amaechi, the 187 km Abuja-Kaduna standard gauge line was completed on July 26, 2016, with four coaches, while 10 new coaches and two locomotives were added on Dec. 10, 2017. As of July 2020 a total of 27 coaches, 7 locomotives have been deployed to the route to give the over 15,000 passengers the maximum comfort and safety needed; this has generated over 10,000 employment to youths through direct and indirect jobs.

So far, Engr. Fidet Okhiria, Nigeria Railway Corporation Managing Director said that the Abuja- Kaduna railway generated over 130 Million monthly revenue; with N90 million spent on running cost and payment of staff. As at 2019, train operations nationwide generated about N3.09 billion and we are targeting about N6 billion when the Lagos-Ibadan and Itakpe-Warri come on board,” he said.

Another China loan collected by the Ministry of Transportation was the 156 km Standard Gauge line for Lagos-Ibadan section with the train maximum speed of 150 km/h, which was agreed on Aug. 18, 2017 at $1.26bn because of the peculiar transport deficit in Lagos and the economic activities, high population and activities of the Apapa port.

Negotiating the loan was important to resolve some of the challenges faced by residents of Lagos. Having a rail line from Lagos to Ibadan passing through the Apapa port was to open up the economic viability of the place and reduce the high traffic and gridlock at the Apapa axis.

Owning to the countless deaths recorded at the Apapa axis due to accidents caused by heavy duty trucks, the Minister of Transportation engaged the train service to evacuate cargoes from the port and ease business for shippers. This laudable initiative cannot be achieved without the loan. So far, about four trains of 20 wagons move cargoes out of the port weekly, which would be increased when the Lagos-Ibadan is fully completed.

According to Amaechi, rail infrastructure is capital intensive and cannot be funded by any private company either in Nigeria or in any other part of the world, noting that China gives the lowest interest rate compared to other countries.

He also saw a need for Nigeria not to continue to be a dumping ground of technology, but to be able to maintain, repair, and construct rolling stocks. In this regard, in 2019, the Kajola factory in Ogun State where locomotives, wagons, and coaches would be constructed was established by the Chinese firms at no cost to Nigeria.

Also, the Minister negotiated the establishment of the first Transport University in Africa by CCECC which would pave the way for the domestication of railway engineering and general transportation sciences in Nigeria and thereby bridging the technology and skill gap in the railway. This was geared towards promoting the development of indigenous capacity through technology acquisition and knowledge transfer for effective maintenance and operation of numerous railway infrastructure which is the first in Africa.

So far, 30 major and minor stations have been constructed under this administration which has created more jobs; Abuja-Kaduna has nine rail stations, Lagos-Ibadan with 10 stations while Itakpe-Warri has 11 rail stations.

The total loan stock is $3.121bn which constitutes 3.94% of $79.3billion total public debt and was meant for infrastructure development in various sector of the economy made up of the National Public Security communication system project for $399.5million which is 100 per cent disbursed, Nigerian Railway Modification Project (Idu-Kaduna section) at $500million is 100 per cent disbursed and commercial operations has commenced.

Abuja Light Rail for $500million which is 100 per cent completed yet to commence commercial operations, ICT Infrastructure Backbone Project for $100million which is 100 percent disbursed, Terminal Expansion Project for Abuja, Kano, Lagos and PortHarcourt Airports for $500million is 91 percent disbursed while Zungeru Hydroelectric Power Project for $984million is 52 percent disbursed.

However, Parboiled Rice Processing Plants Project for $325.6million nothing disbursed yet, Railway Modernisation Project for Lagos-Ibadan section for $1.26bn is 59 percent disbursed while Nigeria Rehabilitation and upgrading of Abuja- Keffi – Makurdi Road for $460.82m is 17 percent disbursed. There is zero disbursements for the supply of rolling stocks and depot equipment of the Abuja light rail project for $157million and Greater Abuja Water Supply for $381m.

Amaechi said that the rail project pending was the Ibadan to Kano, Port Harcourt to Maiduguri, then Lagos to Calabar which will ease business activities, decongest the road and open up more communities to infrastructure development with countless benefits.

All these projects when completed would turn around the Nigerian economy because even developed nations still seek financial assistance to achieve their development goals. With the right system and government in place, Amaechi said that 20 years was ample time to repay every loan collected from the Chinese government.

News Agency of Nigeria (NAN)

 

 

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Turning Africa’s Raw Materials Into Wealth: The ARMS 2026 Industrial Agenda

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By Joel Ajayi

For decades, Africa’s vast natural resources have powered industries and economies far beyond the continent, while many African countries have remained largely exporters of unprocessed commodities and importers of finished products.

That familiar pattern is now coming under renewed scrutiny as policymakers, researchers, investors and industrialists seek to change the direction of Africa’s resource economy.

At the centre of that conversation is the second edition of the Africa Raw Materials Summit (ARMS 2026), scheduled for October 19 and 20 at the Abuja Continental Hotel, Abuja, under the theme: “From African Feedstock to African Factories.”

Organised by the Raw Materials Research and Development Council (RMRDC), the summit is being positioned as more than another gathering of policymakers and industry stakeholders. It is intended to provide a platform for confronting the structural challenges that have kept African raw materials largely disconnected from local manufacturing.

Africa has for years operated largely within a “pit-to-port” economic model, exporting raw materials while importing expensive finished products.

Speaking at a press conference ahead of the summit on Tuesday in Abuja, the Director-General and Chief Executive Officer of RMRDC, Prof. Nnanyelugo Martin Ike-Muonso, said the event would bring together policymakers, investors, researchers, technology providers and industrialists to develop practical strategies for transforming Africa’s abundant natural resources into industrial wealth.

The challenge, therefore, is not simply the abundance of resources, but the continent’s ability to transform those resources into industrial value, employment, technology and wealth within Africa.

Nigeria alone, according to the RMRDC, has more than $582.4 billion in documented non-renewable natural resources, while the wider continent possesses substantial deposits of critical minerals, agricultural raw materials and industrial feedstock.

Yet, the benefits of this resource endowment have often been constrained by inadequate processing capacity, weak infrastructure, limited technology, financing gaps and fragmented regional value chains.

From Dialogue to Industrial Action

ARMS 2026 builds on the maiden edition held in May 2025, which attracted more than 1,000 delegates from across the world.

The inaugural summit also witnessed the unveiling of the Ten-Year Raw Materials Transformation Roadmap (2025–2034) by the Minister of State for Industry, Senator John Owen Enoh.

The roadmap was designed around areas including technological capability, climate-resilient processing and backward integration, establishing a policy framework for greater domestic utilisation of Africa’s raw materials.

The second edition is expected to move the conversation further by bringing policy, capital, technology and industrial stakeholders around practical mechanisms for turning raw materials into locally manufactured products.

One of the major proposals highlighted by the RMRDC is the 30 per cent Mandatory Value Addition Bill, which seeks to establish a statutory minimum level of value addition to Nigerian raw materials before export.

The Council says the proposed framework could support job creation, import substitution, foreign-exchange conservation and increased manufacturing contribution to the economy.

Building the Infrastructure for Value Addition

The industrial transformation envisaged by ARMS 2026 goes beyond legislation.

A major concern is the “missing middle” between where raw materials are produced and where factories are located.

Poor transportation networks, inadequate cold-chain facilities, weak rural roads, limited testing and certification infrastructure and border-related delays can make locally sourced materials more expensive and less competitive.

Consequently, logistics and infrastructure constitute one of the five principal pillars of the summit.

The objective is to develop more reliable corridors connecting farms and mines with processing centres and manufacturing facilities, thereby reducing losses and improving the movement of industrial inputs.

The Digital Dimension

Technology is also becoming an important part of the Council’s strategy.

The RMRDC says it has developed the Nigeria Integrated Information Statistical System for Raw Materials and Products (NISSRAMP), described as a digital repository containing information on feedstock deposits, specifications, production outputs and industrial absorption rates.

The Council has also highlighted its transition towards paperless operations and its certification as a Data Controller/Processor of Major Importance by the Nigeria Data Protection Commission.

Such digital infrastructure could provide investors and manufacturers with better information about the availability and characteristics of raw materials while supporting more informed industrial planning.

Turning Waste Into Industrial Inputs

Another major component of ARMS 2026 is the proposed expansion of the circular economy.

The summit will examine how agricultural by-products, mine tailings, scrap metals and biomass can be recovered and reused as inputs for new production processes rather than being treated simply as waste.

The RMRDC argues that such an approach could lower raw-material costs while supporting more sustainable and climate-resilient manufacturing systems.

For Africa, where industrial expansion must increasingly balance economic development with environmental considerations, waste industrialisation could become an important part of the continent’s manufacturing conversation.

From National Production to African Value Chains

The African Continental Free Trade Area is another important element of the summit’s agenda.

The RMRDC sees AfCFTA as an opportunity to create regional value chains in which raw materials sourced in one African country can be processed and supplied to manufacturers in another.

Under such a model, Africa would move beyond simply exporting commodities to external markets and develop stronger internal networks for supplying chemicals, refined minerals, agricultural inputs and other industrial materials across national borders.

This approach places regional integration at the heart of Africa’s industrialisation strategy.

Bridging Research and Capital

A recurring weakness in many developing economies is the gap between research and commercialisation.

Innovations may emerge from universities, research institutions and laboratories without receiving the financing, equipment or market connections required to become commercially viable.

ARMS 2026 intends to address that gap through technology commercialisation and capital linkages, connecting research outputs with investors, development finance institutions and industrial off-takers.

The RMRDC has also cited partnerships with the Bank of Industry for commercial-scale post-harvest processing and a South-South technology-transfer partnership with the National Innovation Centre par Excellence in Shanghai, China.

A Larger Industrial Conversation

The scale of ARMS 2026 is expected to be significantly larger than the maiden edition.

The organisers project more than 1,800 delegates from all 54 African countries and global industrial partners.

The programme will feature high-level policy dialogues, technical panels, an advanced raw materials and technology exhibition, industrial site visits and the African Raw Materials Industry Awards.

The exhibition, in particular, is expected to showcase locally fabricated processing machinery, advanced domestic materials, green chemicals and engineered commercial inputs.

Beyond the speeches and exhibitions, however, the real significance of ARMS 2026 will ultimately depend on what happens after the summit.

Africa’s challenge has never been a shortage of raw materials. The more difficult question has been how to transform those resources into factories, products, skilled employment, technology and sustainable economic opportunities.

For Nigeria and the rest of the continent, the proposed shift from “pit-to-port” to “feedstock-to-factory” therefore represents a broader debate about the future structure of African economies.

ARMS 2026 seeks to place that debate firmly on the industrial agenda — with value addition, technology, finance, infrastructure, circular production and regional trade at the centre.

If the commitments and partnerships generated by the summit translate into measurable industrial activity, the event could provide another platform for Africa to examine how its enormous resource base can support stronger domestic manufacturing.

The message from the organisers is clear: the continent’s raw materials should not only leave African soil as commodities; they should increasingly become the foundation for African industrial production

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