Why will the Nigerian Railway Corporation be privatized?
The Nigerian railway sector currently managed by the Nigerian Railway Corporation (NRC) is in a very bad condition. The decision to concession the Nigerian railway was borne out of the government’s desire to avoid the worst case scenario, the collapse and eventual shut down of a loss making but socially and economically viable service to the nation. The future of the railways in Nigeria is therefore dependent on the efficiency and professionalism of the private sector to succeed. The private sector focus will no doubt be on the freight traffic such as the bulk cargo, containerised traffic and imported petrol. Passenger services unfortunately are not profitable globally and the common approach would be for the government to pay subsidies for these services.
