Bill to Amend Nigerian Railway Corporation Act Passes Second Reading

By Iyojo Ameh

The Senate has passed for second reading a bill to amend the Nigerian Railway Corporation (NRC) Act.

The bill’s progression followed the presentation of its general principles by the sponsor, Senator Solomon Adeola (APC-Ogun), during a plenary session on Thursday.

In his lead debate, Sen. Adeola noted that the bill was first read on July 20, 2023.

He explained that the bill aims to amend the NRC Act to include an insurance fee, thereby providing adequate insurance coverage for passengers and goods against any damage that may occur while transacting with the railway corporation.

Adeola highlighted the resurgence in railway transportation in Nigeria, citing the modernization of the rail system across the country.

He mentioned that passengers now board trains as an alternative to other modes of transportation on routes such as Abuja to Kaduna, Lagos to Ibadan, and more recently, Port-Harcourt to Aba.

Additionally, goods in bulk are being transported by trains on the nation’s rail tracks.

However, Adeola pointed out a critical gap in the current rail system: the lack of comprehensive insurance coverage for passengers and goods using the services of the NRC. He recalled the March 28, 2022, incident where bandits attacked a train service from Abuja to Kaduna at Katari in Kaduna State.

The train derailed, causing damage to the rail tracks and coaches, and resulting in the kidnapping of some passengers and the deaths of about eight people. He emphasized that there was no insurance coverage for the passengers as the NRC Act does not provide for such.

“It is worthy of note that most sectors of the transportation system offer some form of insurance protection,” Adeola said. “On Nigerian roads, most commercial vehicles, like buses and taxis, are required by law to carry passenger liability insurance. This insurance offers financial compensation to passengers in case of accidents, injuries, or even death.”

Adeola stressed the glaring gap in the absence of mandatory insurance for train passengers using NRC services. He argued that a robust insurance scheme would incentivize the NRC to prioritize safety measures.

“Knowing passengers and cargo are insured could lead to improved service delivery. This, in turn, could boost confidence in the railway system, potentially attracting more passengers and cargo volume for the NRC,” he said.

He urged lawmakers to support the second reading of the bill.

Deputy President of the Senate, Barau Jibrin (APC-Kano), who presided over the plenary session, commended the sponsor of the bill. He expressed hope that President Bola Tinubu would assent to the bill, aligning with international best practices in rail transportation when it is finally passed.

Barau consequently referred the bill to the Committee on Land Transport for further legislative inputs, with a report expected back to the plenary in four weeks.