Possibility To Connect All Niger Delta States By Rail Could Be A Reality
The Niger Delta Development Commission (NDDC) has signed a memorandum of understanding (MoU) with the United States Consulate and Atlanta Global Resources Inc. (AGRI), a United States-based firm, to construct a railway network that is set to connect the nine states of the Niger Delta region. The signing ceremony took place during the one-day Public Private Partnerships (PPP) Summit organized by the NDDC in Lagos on Tuesday, April 25, 2023.
The MoU was signed by Dr. Samuel Ogbuku, the Managing Director/CEO of the NDDC, on behalf of the Commission, Mr. Chamberlain Eke, on behalf of the United States Consulate, and Mr. Tony Akpele, on behalf of AGRI.
The MoU enables the parties to initiate the preliminary processes of assessing the feasibility and viability of the rail project. Following the completion of preliminary studies, finance appraisals, civil engineering procurements, and considerations for locomotive hardware will be undertaken.
Work on the preliminary stages of the Niger railway project, potentially the largest in the history of the NDDC Commission, is expected to commence immediately.
During the summit, Dr. Ogbuku emphasized the NDDC’s determination to redirect its intervention in the Niger Delta to achieve its mandate of facilitating rapid, balanced, and sustainable development in the region, ensuring economic prosperity, social stability, ecological regeneration, and political peace.
He highlighted that the MoU represented a significant accomplishment for the NDDC resulting from the PPP Summit.
In a goodwill message at the summit, former NDDC Managing Director, Chief Timi Alaibe, expressed his delight at the PPP initiative taken by the Commission’s new leadership.
He stated, “This is the first time in 15 years that I am attending an NDDC function. This is because the new board is charting a new course that is impressive.”
Chief Alaibe added, “After the implementation of the Master Plan, we decided on an implementation plan that involved all key stakeholders. We recognised that the Master Plan cannot be solely funded by the government. We needed the involvement of the private sector, which is why I support holding the summit in Lagos, Nigeria’s financial capital. The concept of rewinding and rebirth is appealing.”
Atlanta Global Resources Inc. (AGRI) specializes in financing industrial products, infrastructure projects, agricultural equipment, and capital equipment financing. AGRI was recommended by a reputable US financial institution, particularly for the deployment of US-produced locomotives.
In a separate media statement, the NDDC acknowledged that a partnership agreement of such a massive project, such as a railway network, involves various international and national financial protocols. It has significant ramifications at the highest level of government.
The NDDC also acknowledged the Federal Government’s 2021 contract for rail line construction but clarified that the proposed network covered by the MoU follows a different alignment. Adding that the signed MoU is for a “preliminary process” for a railway network and not an award of contract.