Minister: Why FG should unbundle the railway corporation

Mu’azu Sambo, minister of transportation, has called for the unbundling of the Nigerian Railway Corporation (NRC) for optimal operation.

Addressing the management team of the ministry of finance incorporated (MOFI) in Abuja, on Thursday, Sambo said unbundling the corporation was in line with the vision and objectives of the government’s current reforms in the sector.

According to a statement by Henshaw Ogubike, director, press and public relations of the ministry, Sambo said it has become imperative for the NRC to undergo necessary reforms and be unbundled so as to operate optimally.

He urged the management team of MOFI to make the corporation’s unbundling economically viable while offering world-class services to Nigerians.

Sambo added that the process of unbundling should not evoke fear of job loss for staff members of NRC in any way.

“One of the things I would like to see as the minister of transportation, through MOFI, is the unbundling of the NRC,” Sambo was quoted as saying.

“There is a committee set up to unbundle NRC and I will urge you to work with the existing committee.

“If we have a better performing NRC, then we are going to have better salaries and working conditions for its workers, more revenue for the federal government, and therefore, the ability to even build more rail networks.

The minister also said the issue of encroachment on railway property would soon be a thing of the past.

He said MOFI was established for a specific reason, which is to help the federal government take control of its assets and create optimum value for the assets.

Backing Sambo’s suggestion, Ademola Adegoroye, minister of state for transportation, said he had full confidence that the MOFI team would deliver on their job.

Also speaking, Armstrong Katang, chief executive officer of MOFI, said the visit was to discuss how to create a more effective and efficient partnership between MOFI and the transport ministry.

Katang, said the areas that have been identified for collaboration with the ministry included enumerating and valuing the NRC to ensure that its value was captured in line with the current realities.

“Other areas included enumerating and capturing other critical assets within the ministry, especially its infrastructure assets,” he added.

“And establishing a task force with representation from the ministry of transportation and ministry of finance with clear terms of reference to help with the identified assignments.”