Nigeria requires US $46bn to complete rail projects

PIC.30. TRACK LAYING TRAIN, AT THE OFFICIAL COMMENCEMENT OF THE TRACK LAYING OF ABUJA (IDU)-KADUNA RAILWAY MODERNIZATION IN ABUJA ON THURSDAY (4/7/13).

The Federal Government of Nigeria is currently seeking a loan of about US $40bn to US $46bn to complete some ongoing rail projects and embark on new ones. This is according to Transportation Minister Rotimi Amaechi.

“I think the rail sector is doing fine. The first aspect of it , which is the narrow gauge is where we are not doing much. We are not doing much in the sense that we are negotiating with General Electric, GE to renovate the narrow gauge and manage it under concession,” he said.

The concession will see GE invest in the narrow gauge rail system that traverses almost the entire country.

Also read: Nigeria seeks new economic frontiers on US$41bn rail modernization investment

Additionally, according to Minister Amaechi, one trunk of the rail line starts from Lagos and goes through several states like Ogun, Oyo, Kwara, Niger and Kaduna down to Kano while another trunk starts from Port Harcourt through Abia , Enugu, Benue , Nasarawa , Plateau , Bauchi and Gombe states and terminates in Maiduguri .

Meanwhile, on the new rail lines, work is in progress on the  Lagos to Ibadan rail, which is part of the Lagos to Kaduna.

Funding agreement
According to Minister Amaechi, the Transport Ministry will do everything possible to ensure that the Lagos to Ibadan railway is complete. The ministry is currently negotiating with contractors who will fund the project. Once funding agreements are concluded, the ministry will embark on many other rails projects across the country.

On the dry Inland Port, President Buhari revealed that the one of Plateau will be commissioned by end of April, 2018. He added that, Dry port projects are mainly handled by private investors, so there is nothing much the government can do about it.

Regarding the Lagos-Ibadan rail line, the project is scheduled for completion before the end of 2018.

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