Talks by the federal government with General Electric (GE) over the planned concessioning of the narrow gauge train routes across the country has reached an advanced stage. The narrow gauge train route spans from Lagos to Kano and Port Harcourt to Maiduguri with adjoining towns.
GE and four other yet to be named companies have applied to take over the narrow gauge routes which have been poorly managed over the years by the federal government. Currently, only Lagos to Kano is operating train and freight services.
The minister of Transportation, Mr. Rotimi Amaechi, told journalists after a brief meeting with the representatives of GE that the concession, will see GE take over the narrow gauge rail infrastructure.
The amount of the concession deal isn’t yet clear but observers say it should be around $2 billion and GE would be required to fund the entire process and recoup its investment over a period of time as the FG has foreclosed any financial commitments.