GENERAL ELECTRIC PROPOSES $2 BILLION INVESTMENT ON LAGOS-KANO RAIL LINE-OSIBANJO
General
Electric proposes $2 billion investment on Lagos-Kano rail line – Osinbajo
Vice President, Yemi Osinbajo
Nigeria’s Vice President, Yemi
Osinbajo, says American multinational firm, General Electric (GE), wants to
invest $2 billion to revive the Lagos-Kano Rail Line, as part of efforts to
boost local and international trade along Nigeria’s northern and southern
zones.
Mr. Osinbajo, who spoke Wednesday at
the opening of the inaugural edition of the Lagos-Kano Economic and Investment
Summit in Lagos, said the proposal by GE, under a concession from the Nigerian
government, aims to enhance the movement of cargo from Apapa ports to Kano via
the rail line.
“I believe that Lagos and Kano
states have by this collaboration underscored the cornerstone of the federal
government’s economic recovery and growth plan, namely the leveraging of
synergies among states and between government and the private sector,” said Mr.
Osinbajo, a Law Professor.
“The strategic role of the federal
government is of course to create an enabling environment for commerce,
beginning with the provision of infrastructure.
“For us, what this meant especially
in the context of Lagos and Kano collaboration is the refurbishing of the
narrow gauge Lagos to Kano Rail with a concession to General Electric who are
proposing to invest almost $2 billion to ensure that the rail route is
effective for movement of cargo from Apapa port to Kano.
“Similarly, we are investing in the
Lagos to Kano standard gauge line, the Lagos-Ibadan portion of that is expected
to be ready by the end of this year.
“Also, we have budgeted N80 billion
for the development of special economic zones in the six geo-political zones of
the country.”
Mr. Osinbajo also said arrangements
had been made to establish independent power projects to specifically service
printers in Somolu area and traders in Sura Market in Lagos.
He said the Federal Government would
keep a close tap on the decisions reached at the Summit and would use it to
direct its engagement with state governments going forward.
“Let me again commend Governors
Ganduje and Ambode for this summit,” the vice president continued.
“I want to
commend Governor Ganduje for making the long journey to Lagos. I must also say
that Governor Ambode deserves special mention for his foresightedness in
establishing this collaboration, working with Governor Atiku Bagudu of Kebbi on
the famous LAKE Rice and even leasing land from Ogun State to grow rice which I
think is another act of collaboration.”
In his
address, Governor Akinwunmi Ambode said the decision of the Lagos state
Government to join the Oodua Investment Group triggered what has evolved over
the last two years to become a signpost for effective partnerships between
Lagos and other States.
He said with
the current economic challenges facing the nation, there was no better time for
states to begin to look beyond an oil driven economy and take advantage of
their comparative advantages to engender economic growth.
“We urge
other states and regions to begin to leverage on their respective areas of
comparative advantage by establishing partnerships towards establishing an
inter-state or inter-regional commodity value chain,” the Lagos governor said.
“The idea of
an intra and inter-regional trade and cooperation is not new to Lagos State.
Over the past years, our State has collaborated with Kebbi and other states
from within the western region to drive economic growth and development.”
He said the
immediate aim of the strategic partnership with Kano is to produce about 80 per
cent of Nigeria’s agro-allied inputs such as wheat, groundnut, onions, maize,
millet, sorghum, sugar cane and beef, adding that a Memorandum of Understanding
would be signed by both states at the end of the summit to demonstrate
commitment to the sustainability of the partnership.
Also
speaking, Governor Abdullahi Ganduje said his administration entered into the
partnership with Lagos with a strong belief that it would create a veritable platform
to drive home grown investments in the face of volatile global oil prices.
“We need to
redefine our investment climate and find alternative sources of financing
critical sectors and projects as well as improve public service delivery,” he
said.
He said the
state was looking towards effective partnership in Infrastructure, Agricultural
Value Chain, Solid Minerals, ICT, Commence and Industry, Medium and Small Scale
Enterprises, Tourism, Governance and Institutions.
On his part,
president of Dangote Group, Aliko Dangote, commended the partnership between
both states, just as he said Lagos has clearly demonstrated its readiness for
serious investments.
“Lagos is
more than ready for business. Our refinery, petrochemical, fertilizer and gas
projects will generate N8 trillion per annum for Nigeria when fully on stream,”
he said.
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