The Federal Government (FG) plans to secure multi-billion dollar loans from Chinese, Portuguese, and Turkish financial institutions to complete the ongoing rail projects across the country.
Minister of Transportation, Muazu Jaji Sambo, said this in Abuja when he appeared before the Joint National Assembly Committee on Land and Marine Transport on Thursday, November 3. The minister disclosed that the Railway network was being progressively expanded through yearly budgetary appropriations since the FG faced challenges securing counterpart funding through loans.
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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 the negotiation of the loans with infrastructure development finance institutions of Chinese, Portuguese and Turkish origin to implement the projects.
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To ensure finalising and signing of the loan agreements, evidence of the 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. Adequate funds need to be provided in the 2023 budget to facilitate the practical completion of the projects,” he said.
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