Increasing Litigations, Encroachment, Rent Default Worry Railway Property Management Firm

The managing director and Chief executive officer of the Railway Property Management Company Limited (RPMCL) Timothy Zalanga has said that the increasing litigations, Encroachment and default in rental payments are among other issues affecting effective running of the company.

He also said, insecurity, lack of synergy between Federal Ministry of Works, Federal ministry of Transport and the Nigerian Railway Corporation (NEC) on land acquisition for new rail corridors are also challenges being faced by the company.

Zalanga stated this when he received on a special orientation visit the managing director of the NRC who also doubles as the board chairman of the RPMCL Dr. Kayode Opeifa in Kaduna.
The RPMCL managing director said that tenants now resort to courts where litigations can go on for years while they continue to stay if the property without paying once pressures are mounted on them to pay their rents and debts.

“Delay in our Legal processes, the fact that judgements on most of our cases are delayed/prolonged in Courts across the country, is a setback to our revenue generation processes.”

“Dual Identity and Challenges with other Government Agencies: Even though we are a limited liability company governed by Memorandum and Article of Association, we are being treated as a separate entity, sometimes being subjected to a lot of interference by other government agencies.

“The mentality that it is government land makes a lot of organisations and individuals default in the payment of their rental obligations. The major culprits are federal and state government agencies.”

He further stressed issues as it surrounds encroachment and forceful takeover majorly by state and federal governments. “Examples are River State where the state government has been making several attempts on Railway Properties; Kaduna State government has forcefully taken over and entered some of our properties; Jukun Communities in Benue States have been threatening our staff to encroach on our lands; Oyo and Kaduna State refusing to grant Planning Approval to our Tenants demanding them to obtain Certificate of Occupancy from the States.”

Insecurity which is a national issues the managing director said has affected a lot of businesses; hence, inability of the tenants to pay rent especially in the North and East, in addition to negative insinuations and lack of understanding the concept of leases makes a lot of people to insinuate that the lands are being sold.

“Shortage of Manpower is also a challenge, as at today; the Company has only 141 Staff (whereas we need about 250) to run the Company effectively”.

“RPMCL is aggressively pursuing the recovery of all encroached NRC lands, recovery of all rental debts, regularisation of illegally occupied properties, and full commercialisation of all dilapidated structures and surplus lands as means of improving revenue to support Rail Operations,” he said.

Responding, the board chairman Dr. Opeifa expressed satisfaction with the performance of the RPMCL under it’s managing director, management and staff.

In his words, “I am impressed with the presentation which deserves a standing ovation particularly with directors who are all professionals. I am satisfied that RPMCL is in the right hands”.

He assured that on his part and that of the board members, there will be no interference whatsoever in the activities of the RPMCL , stressing that the board will give them all the required support.

“I will urge you to work on the assets and we will help to solicit government support as partners in progress, you can also implore Alternative Dispute Resolution Mechanisms (ADRM) in most of the matters” the Board Chairman admonished.

He concluded his visit with a facility tour of some of the properties under the management of the RPMCL.