FG targets N22bn from Lagos-Ibadan, Warri-Itakpe train routes in 4 years

The federal government has projected to generate N12.4 billion and N9.6 billion on the newly launched Lagos-Ibadan and Warri-Itakpe train routes, respectively in the next four years. This emerged at the weekend as the Infrastructure Concession Regulatory Commission (ICRC) presented the Outline Business Case (OBC) certificate for the proposed electronic ticketing (e-ticketing) solutions for the […]

The federal government has projected to generate N12.4 billion and N9.6 billion on the newly launched Lagos-Ibadan and Warri-Itakpe train routes, respectively in the next four years.

This emerged at the weekend as the Infrastructure Concession Regulatory Commission (ICRC) presented the Outline Business Case (OBC) certificate for the proposed electronic ticketing (e-ticketing) solutions for the two train routes to the Nigerian Railway Corporation (NRC).

The OBC certificate, otherwise known as Certificate of Compliance, implies that the planned Public-Private Partnership (PPP) for the e-ticketing solution is bankable and commercially viable.

The acting Director-General (DG) of ICRC, Mike Ohiani, presented the certificate to the NRC Managing Director (MD), Engr Fidet Okhiria, at a ceremony in Lagos.

Daily Trust further reports that NRC had earlier through an advertisement invited bidders who will design, build, operate and transfer for a secured e-ticketing solution for the Lagos-Ibadan and Warri-Itakpe standard gauge services.

The advertisement closes on Monday (today) with the formal opening of the bid taking place at the NRC headquarters to select the concessionaire for each of the train services.

Engr Okhiria said the introduction of e-ticketing earlier on the Abuja-Kaduna Train Service had improved the revenue and blocked leakages while minimising the complaints of ticket racketeering.

According to him, the e-ticketing solutions will enable passengers to book trains in the comfort of their homes while easing pressure on NRC staff at various stations on the two routes.

He said, “Some time ago we introduced e-ticketing on the Abuja-Kaduna Train Service and the benefits of it have been an eye-opener, and apart from the benefits to the users, NRC and the government are also reaping from the e-ticketing.

“I am proud to say that since the introduction of the e-ticketing, the revenue has gone up drastically either by encouraging users to use the trains or if there were leakages, at least, they have been blocked somehow, and the fear of ticket racketeering has also reduced by introducing the e-ticketing and its technology. It cannot be perfect in one day; we are also reviewing it on a daily basis, on a weekly basis, on a monthly basis and trying to improve on what we are doing.”

On his part, Mr. Ohiani said with the OBC certificate presented, interested investors had the assurance that the project was bankable and commercially viable.

He said, “It will also increase revenue generation through reduction of fraud, fare evasion, as well as increasing fare purchase options for teeming clients. Overall, the solution is proposed for a secured seamless ticketing system on the routes earlier on stated.”