The mass transportation option in Nigeria and what it means...

The recent edict of the Lagos state government to invest in rails as a form of viable mass transportation must be regarded as a potential business boom that it represents for many sectors of the economy. The typical ratio of the size of Lagos compared to the population it supports means that the traffic situation will only compound as more people move to Lagos in search of the proverbial golden fleece.

With a population that falls between seven million people to fourteen million people - there is always a constant movement of cars and people from one end of the city to another. Due to the pressure in the city centre there is a perceived movement to the suburbs to manage the crowding and noise - however since most people still work in the city, they require to get into the heart of the city and this can take anywhere between thirty minutes to three hours depending on where your reside.

The rail project will provide the ability to transport people and goods across the length and breath within estimated times without the attendant traffic while conserving fuel and time.

The estimate is for a rail system that will ferry and estimated 1.5 million people across the city scape while generating significant revenue for the state government.

The potential benefit of such a project especially in the arena of toll collection or fare collection would be a business that would see constant revenue flowing in to any potential operator. A typical fare would be between 50 to 200 naira depending on where the passenger's destination. If tolls/fares where collected electronically - there would be savings on printing costs for tickets as well as income derived for the toll/revenue collector on a daily basis that would easily surpass 50,000 naira daily.

The use of prepaid transport cards that could be bought with a  fixed value that is reloadable or probably can be used and disposed. At each use - depending on the location - the deduction via a terminal would be made from the card automatically when the card is placed against a receptor plate.

The company that brings this technology and platform in-place would undoubtedly position itself for the lucrative toll collection market.