Outgoing President Muhammadu Buhari on Monday in Kajola, Ogun State, inaugurated the first wagon assembly plant in the country.
He said the plant will produce 500 wagons per year.
Buhari, who was represented by the Minister of Transportation, Mu’azu Jaji Sambo, said that out of 368 various types of wagons needed and awarded to China Civil Engineering Construction Corporation (CCECC), 220 will be produced at the Kajola plant.
“The establishment of the Kajola Assembly Plant was a Corporate Social Responsibility by Messrs CCECC Nigeria Limited in the Lagos-Ibadan Railway Modernisation Project being a section of the Lagos-Kano Railway Modernisation Project.
“With my approval, the Ministry signed an agreement in March 2018 with Messrs. CCECC as Direct Foreign Investment (DFI) by the company in compliance with Presidential Order No. 5 to promote companies’ involvement in infrastructure development and transfer of technology to Nigeria.
“Expectedly, the Federal Government is to facilitate the establishment of the plant by providing an enabling environment and necessary support in terms of tax waivers, utilities (power and water supply), access road and rail sidings etc. This responsibility was carried out meticulously by the Nigerian Government.
“The groundbreaking ceremony of the Wagon Assembly Plant as you may wish to note was performed by the Vice President, Professor Yemi Osinbajo GCON on November 8, 2019.
“The Wagon Assembly Plant is now completed and has a locomotive and rolling depot, having the capacity to produce 500 Wagons per year of open wagons, container flat wagons and box wagons.
“Out of 368 various types of wagons needed and awarded to Messrs. CCECC, about 220 wagons of the existing rolling stock procurement contract are to be produced at the Kajola Plant pending when the plant would be transformed into a full wagon manufacturing plant.
“Other advantages of setting up the plant is the potential to be provided by the ongoing rail projects in the country and Sub-African Region which will generate significant demand for Nigerians Rolling Stock.
“With the milestone achieved, we are seriously working to open the first University of Transportation in Daura, Katsina State. The intention of this University is to ensure adequate turn out of graduates, technicians, artisan, and researchers on different areas of transportation especially railway transportation to guarantee the sustainability of the massive infrastructural provision of this administration on rail transportation,” he said.
Speaking earlier, the Permanent Secretary, Federal Ministry of Transportation, Magdalene Ajani said that the plant offers an important platform for indigenous technicians, artisans, and others to gain specialized skills for the production and maintenance of rolling stock.