The Federal Government are considering multi-billion dollar loans from Portuguese, Chinese and Turkish financial institutions to complete the ongoing rail projects across the country, Mu’azu Sambo, the Transport Minister told the Senate.
The Minister made this expression to the Joint National Assembly Committee on Land and Marine Transport, presided by Senator Danjuma Goje, on Thursday.
He said that the ministry was determined to the delivery of the Nigeria Railway Modernization project.
Sambo explained that the railway network was being constantly expanded through yearly budgetary appropriations since the Federal Government was facing challenges in securing counterpart funding through loans.
The Minister said, “Currently, the implementation of the Kaduna-Kano, Port Harcourt to Maiduguri and Kano – Maradi Segments of the Railway Modernization 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 Chinese, Portuguese and Turkish origin to implement the projects.
“To ensure finalising 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.”
He stated also that the Lagos–Ibadan segment of the Lagos–Kano and Itakpe to Warri railway projects were totally functional and enjoying patronage from the general public.
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