According to Transport Minister Mu’azu Sambo, the federal government is seeking multibillion-dollar loans from Chinese, Portuguese, and Turkish financial institutions to finish current train projects around the country.
On Thursday, Sambo delivered this remark before the Joint National Assembly Committee on Land and Marine Transport, which is led by Senator Danjuma Goje. He stated that the ministry was dedicated to carrying out the Nigeria Railway Modernization Project.
He stated that the railway network was being gradually developed through yearly budgeted expenditures since the Federal Government was having difficulty obtaining counterpart finance 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 also said that the Lagos – Ibadan segment of the Lagos – Kano and Itakpe to Warri railway projects were fully operational and enjoying patronage from the general public.