An economist and financial analyst, Mr. Bismarck Riwane has said the Lagos-Ibadan double track rail project when completed has the capability of driving down inflationary pressure on Nigeria’s economy.
Riwane spoke during the inspection of the construction works on the facility by the Minister of Transportation, Mr. Rotimi Amaechi. He joined the minister on the inspection alongside the Vice President, World Bank, Arunma Oteh and other government officials.
“The project is quite impressive. It’s a massive project and it will have a multiplier effect on the economy when it’s finished. It will reduce logistics and distribution cost which is a major area of inflationary pressure in Nigeria” he said adding that “anything that reduces inflation impacts the economy.”
“It’s the impact of the investment rather than the Investment itself that create jobs, reduce cost and improve productivity which is the major concern in Nigeria” he noted.
Also commenting, Aruma Oteh said the project is huge and the impact on the economy will be significant.
The Minister of Transportation, Mr. Ameachi also said his quest to deliver the project even ahead of the three-year contract term is more economic than political.
“I’m not under pressure to get this railway done, but a part of the solution to the crisis of Lagos sea port is an efficient rail line. The moment you fix the rail, the goods will transfer to the rail and the lock jam will be over, especially the goods going to Ibadan” he said.
“So the pressure is more economic than political or people. The moment we get to Iju, I will push them to get to the ports” he noted.
He also informed that the first part of the project to be commissioned will be from Iju to Abeokuta.
“They want us to flag off from Agbado but I want to flag off from Iju because that is where the passengers are. CCECC said they can get to Agbado in three weeks but that’s not what I want. They should get to Iju” he said.