FG to Expend N120billion for Lagos-Kano-Calabar Standard Railway Tracks

The Minister of Transportion, Rotimi Amaechi, on Thursday, February 18, revealed that the federal government would expend an aggregate of N120 billion for its two new standard (guage) railway tracks to be constructed on the Lagos-Kano and Lagos-Calabar rail corridors from its 2016 budget.

Amaechi, who made the disclosure after a train ride on the completed 186-kilometre Abuja-Kaduna railway project, from Idu terminus at the Federal Capital Territory (FCT), said the N60 billion apiece on both corridors will be for new standard gauge, adding that the narrow gauge on those corridors are already functioning.

“We have N120 billion on the 2016 projects. As you are aware of the dire financial situation, and putting into cognizance that President Muhammadu Buhari has taken all the rail projects as priority, out of this, N60 billion is for the Lagos-Kano standard gauge as the narrow gauge is working already,” the Minister said.

According to him, government is spending N60 billion apiece as part of its counterpart contributions, while the Chinese Exim bank will offset the balance payment for the project as part of their obligation. He added that the two fresh projects are however not contractual.

Amaechi said: “In fact, when I was at the National Assembly, they wanted to know if the new projects were on contract terms, I told them no.”

He said the federal government was currently implementing the projects that it met on the ground.