Nigerian government is waiting for China to release a loan to complete the railway line before Buhari leaves office

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  • The Nigerian government explained why several railway projects in the country remain unfinished
  • The projects were to be completed before the end of President Buhari’s term
  • However, delays in the disbursement of agreed loans in China have halted the projects, according to the federal government

Transport Minister Mua’zu Sambo had said the Nigerian government was waiting for further loans from China to complete construction of the Abuja-Kano and Port-Harcourt-Maiduguri railway projects.

Sambo, made it known at a press conference in Abuja on Friday, said the government’s inability to secure an 85% foreign loan for the project was delaying the completion of the projects.

The minister said Chinese financiers were to provide an 85% loan for the railway project.

Chinese President Xi Jingping and President Muhammadu BuhariCredit: Pool/Pool
Source: Facebook

The Minister further explained that in the absence of loans, the projects were carried out with trust funds which were not sufficient to carry them out.

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Sambo words:

“The Abuja-Kano and Port-Harcourt Maiduguri railway projects are ongoing, but the 85% foreign loan is yet to be secured,” he added.

“We have driven these two projects solely through ownership, which is part of the 15% that Nigeria is expected to contribute.

“Indeed, I can tell you with certainty that with respect to the Kaduna-Kano Railway, we have paid the contractor in full for the 15% obligation of the federal government.

“Until we have the 85% component, the project will have to be continuously financed by credit.”

China cuts loans

Legit.ng earlier reported that China announced it was cutting loans to African countries.

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China is Nigeria’s largest lender, with total indebtedness of $3.9 billion as of June 30, 2022

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Legit.ng previously reported that President Muhammadu Buhari drew strong reactions from Nigerians when he re-applied for approval of another round of loans in the Senate.

The Nigerian leader sought the approval of the National Assembly to borrow $4,054,476,863.00, 710 million euros and a grant of $125 million.

Many Nigerians are opposed to the current administration’s borrowing spree, which seeks to provide more infrastructure amid falling incomes.

Source: Legit.ng

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