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TPM00235 - ANALYSIS OF OPERATIONS OF NIGERIA RAILWAY COOPERATION


ABSTRACT

            An efficient transport system is a catalyst for economic development the world over, therefore rail transport plays a significant role in the socio-economic activity of any nation. The Nigerian Railway Corporation (NRC) is currently confronted with numerous problems ranging from operational, capacity building, management and customer patronage (Adesanya, 2010; Osborne, 1993). Successive governments at various times have all played a part in an effort to make the service efficient, productive, operate maximally and at best profitable but to no avail. Several billions of dollars have been expended on rail transport at different times to rejuvenate the service and make it operationally viable, but there is little evidence to justify all sums of money invested on the service let alone the impact of government intervention felt in resuscitating the rail transport (Ademiluyi and Dina, 2011; Adeyemo and Salami, 2008; Jerome, 2008). 

            Research methodology includes a review of relevant theories such as, the population of the study, the sampling frame, the sampling method; though a simple random sampling was used in identifying the respondent. Facts were sourced using primary data and data was collected using interview and well Survey questionnaire was also used to solicit information from respondent. Method of analysis used includes frequency and percentage analysis, descriptive analysis and variance analysis (ANOVA).

            The result of the analysis presentation revealed that features such as government policy, corruption of government, poor maintenance culture and lack of expertise among others which this project might not reflect (error term) has brought about setback in the development on the Nigeria Railway Cooperation.

            As a result of this, it is hereby recommended that government should focus more on the NRC sector, such as reviewing of the government policy on the matters concerning NRC and adequate allocation of fund to the sector.

 

CHAPTER ONE

INTRODUCTION

  • Background of the Study

            An efficient transport system is a catalyst for economic development the world over. As such railway transport is perceived to play a strategic and important role in the socio-economic activity as well as contributing significantly to social, political and economic activities of any nation. The Nigerian Railway Corporation (NRC) is currently confronted with numerous problems in the areas of operations, capacity building, management and customer patronage (Adesanya 2010; Osborne, 1993). Over the years, successive government administrations have played a part in an effort to make the system efficient, productive, maximally operative and profitable, Although several billions of dollars have been expended on rail transport to rejuvenate the system and make it operationally viable, there is little evidence to justify the investment or the government intervention (Ademiluyi& Dina, 2011; Adeyemo& Salami, 2008; Jerome, 2008; Ozoemena&Idonor, 2006).

     The history of the Nigeria Railway Corporation (NRC) commenced in the ninety – eight years ago in 1898, when the colonial government initiated the construction of railways. This was principally to winder the scope of transportation facilities in the country which have become imperative as a result of the tremendous growth of commerce. Nigeria railway corporation ordinance Act 1955 is fully owned by the federal government, the Nigeria Railway Corporation (NRC) was also incorporated on October 1st 1955 but was not provided with a working capital. The corporation commenced operation in 1912 with a root approximately put at 1496 kilometers. By 1927, this reached 2,571 kilometers and by 1936 it made further increase up to 3,057 the kilometers covered reached 3,062 and by 1978 and these increase were followed by a down ward trend between 1958 and 1959, when it, length roads decreased to 2,846 kilometers, but later Picked up again, in 1961 and by 1962 the roads reached 3,036 kilometers.

According to NRC ordinance Act (1955:15) the goals and objectives of NRC as stated in the ordinance from 1955 are as follows:

  1. To manage and operate the railway and provide reasonable facilities for the carrying of passengers and freights.
  2. b) To control railway expenditures and revenues
  3. c) To ensure that, as far as it is practicable annual renewed are sufficient to meet all expenditures properly chargeable to revenue.
  4. d) To direct and control the expansion of the railway system.

            The main objective of the NRC is to provide efficient and reliable freights and passengers services in order to enhance economic, social and general welfare of the country, and also among the objective was to lay a sound technical and economic foundation for a steady and successful operation in subsequent years.

The country has two major Cape-gauge rail lines:

* The Western Line connects Lagos on the Bight of Benin to Nguruin the northern state of Yobe, over a distance of 1,126 kilometers (700 mi).

* The Eastern Line connects Port Harcourt in the Niger Delta to Maiduguri in the northeastern state of Borno, near the border with Chad.

There are also several branch lines:

* The Linking Line connects Kaduna on the Western Line to Kafanchanon the Eastern Line.

* Ifaw– Ilaro(Western Line), 20 kilometers (12 mi)

* Minna– Baro(Western Line), 155 kilometers (96 mi)

* Zaria– KauraNamoda(Western Line), 245 kilometers (152 mi).

*  Kuru– Jos(Eastern Line), 55 kilometers (34 mi)

1.2       Statement of the problem

This research investigates the problems, and their causes confronting the NRC.

For instance, a high-performing railway system makes significant contributions to the socio-economic development of any nation cheaply, effectively and safely with minimal environmental impact (Jaekel, 1997; Elechi, 1998; Kessides, 2004; Ozoemena&Idonor, 2006; Adesanya, 2010).

            Therefore, understanding the root of the problem and the options available makes it possible to devise a strategic plan of action to improve the railway system and, in turn increase the socio-economic success of Nigeria.Over the years, successive governments have seen the transport system as a medium for seeking relevance and achieving acceptance, especially when the regime is new. Therefore, use it as one of the cardinal points of their political manifesto for strategic and tactical means of achieving economic development. As such, successive governments in Nigeria, soon after coming to power, use development of the rail transport as a populist agenda to seek relevance by investing heavily in the rail sector at the initial stage of their tenure.

            Though the Nigerian Railway corporation (NRC) was established for the purpose of moving freights and passengers by rail and storage of goods within Nigeria (whether or not these goods are to be carried by the corporation), the consignment of goods on behalf of other persons from any place within Nigeria or elsewhere, the provision within Nigeria both for passengers carried by the corporation and for other persons, hostel, other living accommodation and place of recreation. In addition to its poor funding, there was an increasing operating cost such as the increase in employee salaries and benefits resulting in salary and gratuity arrears for employees, both past and present.

For example, Adesanya (2010) noted that, “in spite of generating relatively small revenue per annum, its pension bills alone, which rose from N577 million in 1999 to N2.4 billion in 2017, has eroded into what is generated”. Therefore, making the NRC’s activities non-sustainable let alone be able to support the increase level of service and infrastructural demands for an efficient service.

            However, the corporation activities today are considerably limited in scope because of the managerial problem that has hindered its operations thus preventing it from meeting its obligations to the government and people of the country. These has created a great concern and sources of worry to the federal government as well as those whose business are greatly affected by the poor state of our system of rail transport, this sources of worry to the federal government force the federal government of the federal republic of Nigeria to enter into contract in 2012 by President Goodluck Jonathan administration with the china civil Engineering construction corporation (CCECC) as a way to create efficient functionality of Nigeria rail way corporation.

            Amongst the managerial and operational problems encountering by the corporation is financial management sources of fund, management fund, disbursement of fund, management of tracks, management, communication management vies telephone warlike talkie, personnel management via employment and firing, problem of training, management of coaches and wagons via toiletries, bathing rooms, kitchens and eating places, non – availability inadequate supply of water, intermitted supply of light as a result of canalization of lights inside the coaches.

1.3       Research Question

            Rail transportation is of immense benefit to all human such that its development cannot be underrated.  For nations development and growth rail transportation cannot be sideline, therefore many scholars had come up with so many questions in solving the problem hindering growth and development of NRC.

       From the foregoing, this study therefore aims at analyzing the analysis and operations of NRC, as well as solving problems hindering the growth and development of NRC, by providing answers to the following research questions;

. Whatis the socio-economic characteristics of the respondents?

. Whatis the frequencies of usage of NRC by respondents?

. What is the status of NRC by the respondents?

. Whatis the improvements of NRC by the respondents?

 

 

1.4       Aim and Objectives of the Study

The aim of this project are to analyze the operation and analysis of the NRC, and the objectives of the study are to:

.          Determine whether NRC has actually been contributing significantly to the development of transport sector in Nigeria.

.      Ascertain the outcome of freight and passengers that are transported by the NRC.

.      Examine the problem hindering growthand development of NRC

1.5       Research Hypothesis

Ho:      There is no significant relationship between the improvements in the analysis and operations of NRC since 2010-2017 and the adverse impact of the problem hindering the growths and developments of NRC.

H1:      There is a significant relationship between the improvements in the analysis and operations of NRC since 2010-2017 and the adverse impact of the problem hindering the growths and developments of NRC.

1.6       Significance of the Study

            The research study demonstrates findings that serve to illustrate the cause as well as provide an invaluable assistance, suitable and feasible solutions to the problems facing NRC. The study also helps in understanding the respective operational performance issues, as well as NRC performance indicators in terms of the operational measures (efficiency, effectiveness, investment, productivity and profitability), effects and impact.

The research study examined the role and impact of efficient railway transport on an economy as well as established the gamut of problems currently confronting the NRC and identified their root causes, directly or remotely.

            This study will be of immense help to the federal government who has pumped in a lot of money into the corporation of recent. This study will equally bring to light the present situation or position of the corporation to the management and the government in order to rehabilitate, revitalize and revamp the corporation.

1.7       Scope of the Study

            This study will examine the NRC’s performance indicators measured by effectiveness, efficiency, sustainable investment drive in the sector, productivity and profitability, leading to an increase in the quality of service, frequency of service, cash flow and the managerial problems of the Nigeria Railway corporation (NRC) and ways of improving the managerial problems.

1.8       Limitation of the Study

            During the course of carrying out this project work, the researcher was confronted with some problems and among them is stated below:

  1. Time constrain which does not allow the researcher to be more elaborate in his findings.
  2. Inadequate funds which does not allow the researcher to have enough population sample.
  • Lack of enough support from the respondents to the research question.

 

1.9       Definition of terms

NRC:                          Nigerian Railway Corporation

TRANSPORT:          A system for carrying people or goods from one place to another.

FREIGHTS:              Goods or commodity that are to be transported.

ROUTE:                    A way that you follow to get from one place to another or a fixed way                               along which bus, train etc. regularly travel.

CONSIGNMENT:    Movement of goods by a large vehicle such as train etc.

CCECC:                    China Civil Engineering and Construction Corporation.

 

ROLLING STOCK:            This include the entire carrying system which is made up of the locomotive engine, coaches, wagons, [both covered and uncovered] and tanks.

LOCOMOTIVE ENGINE: This is the engine mechanism at the head of the rolling stock that pulls them along the track in the movement of goods and passenger’s trains.