Former Nigerian minister of finance Ngozi Ikonjo-Iweala has denied reports that he allegedly diverted $1billion loan obtained from the China-EximBank meant for rail construction in Nigeria. The project in question is the construction of Lagos- Kano rail project.
The Minister is allegedly blamed of diverting the funds to other project other than the Lagos- Kano rail project. Apparently, Alhaji Mohammed Bashar, the Permanent Secretary for the Transport Ministry filed the allegations claiming that the considerable amount of US$1bn loan obtained from the China-Exim Bank during the tenure of the former President Goodluck Jonathan administration for the Kano-Lagos rail project was diverted to other projects in Nigeria.
However, the former minister maintains her dignity stating that the claim is baseless and wrong as there are available records for investigation with the China-Exim Bank or the Chinese Embassy. According to her, it was the Lagos-Ibadan rail project, not Lagos-Kano rail project that was proposed in the original application to the China-Exim Bank which in the end no funds were allocated by the China-Exim Bank for the Lagos-Ibadan rail construction project as initially agreed.
Infact, according to the terms and conditions signed by the Federal Government of Nigeria and the China-Exim Bank to finance any project, does not allow any alteration of the project funds. Nonetheless, the China-Exim Bank does not disburse money directly to government and therefore the issue of diversion can never arise.
Moreover, it is evident that several project are currently in good progress with funds from the China-Exim Bank such as the expansion of four International Airport Terminals in Lagos, Kano, Abuja and Port Harcourt having received a total amount of US$500m finance. The Abuja Light Rail project also received a similar amount of US$500m from the bank while the Zungeru Hydro-electric power project and the Galaxy Backbone project received US$984m and US$100m respectively.
Rail construction in Nigeria is in top gear across various states of the country as it steps up efforts to boost connectivity thus opening the country for trade.
