Home Economy Train service: Automated ticketing to generate N16bn in the next ten years

Train service: Automated ticketing to generate N16bn in the next ten years

by Business News Report
From left: Managing Director Nigerian Railway Corporation, Engr. Freeborn Edetanlaen Okhiria. Honorable Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi and Engr. Chidi Izuwah, Director-General/CEO of  Infrastructure Concession Regulatory Commission (ICRC). During the handover of Certificate from (ICRC)  to design, development, deployment and management of a secure automated fare collection solution to Federal Ministry of Transportation (FMOT) Nigeria Railway Corporation (NRC) in Abuja.

An estimated rise in the sales of train service ticket via the automated ticketing platform is  expected to hit 16 billion Naira in the next ten years the Director General ,Infrastructure Concession Regulatory , ICRC ,Commission Engt Chidi Izuwah has revealed. Recall that the Managing Director , Nigeria Railway Corporation, NRC, Engr Fidel Okhiria had revealed this in August  during an inspection tour of the lagos Ibadan rail project on  that after the ICRC presents the certificate, it will then proceed to the federal Executive council for approval  before implementation The ICRC boss made this disclosure   at the presentation of the Full business scale Certificate for the concession of the E ticketing system to the  Minister of Transportation,  Hon Rotimi Amaechi  at his office in Abuja. 

He said,” You promised a couple of months that there is a solution to the chaos witnessed at the train stations. We are here today to present the full business certificate for the ticketing solution for NRC . What is interesting is that because how popular the rail service is that under the inspiration of the President , this transaction is for ten years and over those ten years ,the financial model shows that NRC and the federal government  will earn over 16 billion naira as revenue from the ticketing system. That will provide additional revenue for the government.  So basically., we have turned a problem into an opportunity. This is a PPP where the Private sector will invest money to develop, deploy and operate and integrated ticketing solution so Nigerians will be able to buy their own tickets the way it is done anywhere in the world. 

“The NRC has gone through a procurement process in line with the ICRC ACT  , a competitive process and a preferred breeder has been identified- SECURE ID. Continuing further , he said , “A  full business case was  developed, due diligence was  carried out to verify the  technical  financial and managerial competence of SECURE ID and her partners to execute this project . The next stage is in line with the ACT to present this to the Federal Executive Council , FEC  for approval. After FEC’s  approval, then you can sign the concession agreement , the project will reach financial close, then we can have execution of this project to the benefit of Nigerians.”

While  highlighting  the benefits of the e ticketing system, Engr Izuwah  further explained that the objective  of the project was to increase revenue generation through the reduction of fraud and also increase passenger fare purchase options. ”We also want to increase passenger convenience by introducing the fare dual hub. This  will also improve service welfare to passengers and create a wider aisle of fare policies through additional added value because those tickets can also carry adverts and become a substantial part of revenue” he pointed out In his remarks, the Minister thanked the DG ICRC for the timely presentation  certificate adding that he would proceed to Council immediately for approval. 

He however opined that beyond the e ticketing system , a holistic approach to solving the problems associated with sales ticket would be the buying of Kore coaches and locomotives to meeting the increasing passenger traffic.  “I  agree that this is a solution to the madness of what we have in Riagasa station down to Idu. But the most important solution is the provision of more coaches and locomotives.  This will go a long way to reduce the madness because if people can buy their tickets from their offices  and homes, they will not be coming to the train station to cause that chaos we are seeing there .

I just had a meeting with the president  today and we agreed that we should approach the Chinese and buy more coaches. The moment we get more coaches, then we will completely eradicate the current madness going on in the different station between Rigasa and Idu.”

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