FG stalls rail projects as China refuses to release loan

The Minister of Transportation, Mua’zu Sambo, had said the Nigerian government is waiting for more loans from China to complete the construction of the Abuja-Kano and Port-Harcourt-Maiduguri rail projects.

Sambo, who made this known at a press conference in Abuja on Friday said the inability of the government to secure an 85 percent foreign loan meant for the project was delaying the completion of the projects.

The Minister said that the Chinese financiers were expected to provide an 85 percent loan meant for the rail project.

The minister further explained that in the absence of the loans, the projects were being run through appropriation funds which are not enough to complete them.

Sambo words:

“The Abuja-Kano and Port-Harcourt Maiduguri rail projects are ongoing but there is a challenge of the 85 percent foreign loan yet to be secured,”

“We have been driving these two projects solely through appropriation, which is part of the 15 percent which Nigeria is supposed to contribute.

“Indeed I can tell you for sure that with respect to the Kaduna-Kano rail, we have paid completely to the contractor the 15 percent obligation of the Federal Government.

“Until we have the 85 percent component, the project will have to be continually funded through the appropriation.”
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