The Federal Government has said it has not secured the 85% loan for the Kaduna-Kano and Port Harcourt-Maiduguri rail projects. The Minister of Transportation, Mu’azu sambo said this while addressing newsmen recently in Abuja. According to the News Agency of Nigeria (NAN), Chinese financiers were expected to provide the loan intended for the projects.
Sambo claims that appropriation funds are being used to manage the ongoing projects.
He said, “The ongoing rail projects face difficulty because an 85% loan has not been secured. We have been completely responsible for these two projects through appropriation, which is a portion of the 15% that Nigeria is expected to provide.”
“In fact, I can assure you that we have fully satisfied the Federal Government’s 15% obligation for the Kaduna-Kano train. The project will need to be continuously funded through the appropriation until we reach the 85% component,” he continued.
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The total cost of the Kaduna-Kano and Port Harcourt-Maiduguri rail projects
The estimated cost of the Kaduna-Kano and Port Harcourt-Maiduguri rail projects is $14.4 billion. The projects are the extension of the Lagos-Ibadan rail line to Kano and the line connecting Port Harcourt with Maiduguri.
Regarding the Transportation University in Daura, Sambo claimed that some administrative difficulties were to blame for the institution’s planned launch in September. However, the minister stated that steps had been taken to address these issues and start the school’s functioning.
He said, “The Transportation University in Daura was supposed to start in September, but there have been some difficulties. Attempts are being made to resolve the difficulties with the Federal Ministry of Education and the National University Commission.”
Rotimi Amaechi, a former minister of transportation, claimed earlier this year that the Chinese were not funding as they used to.
He said, “As of the right moment, we haven’t completed the loan for this project. Therefore, we are using the budget to pay for the Kaduna-Kano and Port Harcourt-Maiduguri rail projects.”
