The Federal government is looking into collecting multi-billion dollar loans from financial institutions in China, Portugal, and Turkey to support the completion of the ongoing train projects around the nation, according to the Minister of Transportation, Mu’azu Jaji Sambo.
This was said by Sambo when he testified before the senator Danjuma Goje-led joint National Assembly Committee on Land and Marine Transport. He clarified that the ministry was dedicated to seeing that the Nigeria Railway Modernization project was carried out.
He claimed that the federal government was having trouble finding counterpart finance in the form of loans, thus the railway network was gradually being expanded through annual budgetary appropriations.
“Currently, the implementation of the Kaduna-Kano, Port Harcourt to Maiduguri and Kano – Maradi Segments of the Railway Modernisation is ongoing with the federal government counterpart funding in the 2022 appropriation.
The ministry hopes that the Federal Ministry of Finance concludes negotiation of the loans with infrastructure development finance institutions of the Chinese, Portuguese and Turkish origin to implement the projects.
To ensure finalizing and signing of the loan agreements, evidence of source of funding of the balance of the advance payment and other aspects of work to be financed directly by the federal government has to be made available to these financial institutions through adequate budgetary provisions in the year 2023 budget and subsequent budgets.”
The Lagos – Kano and Itakpe to Warri railway projects, he added, were fully operating and enjoying widespread public support along their Lagos – Ibadan portion.
The minister stated that certain components of the projects’ development, such as the building of overpass bridges, their connection to the national grid, and other ancillary requirements, needed to be finished in order for them to be practically completed.
The minister expressed regret over the tragic incident involving the Abuja-Kaduna Rail earlier in the year and stated that preparations were being made to restart service.
“With the release of those abducted, the Ministry plans to commence operation on the line, but not without taking proper precaution.”
He said that the required security equipment would be put in place in order to monitor the line and prevent a repeat of the incident.
