Delay in securing Chinese loans derails Port-Harcourt-Maiduguri rail projects – FG

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The Nigerian government revealed that the delay in securing Chinese loans derail the construction of the Abuja Kano and the Port-Harcourt-Maiduguri railway projects, since 85% of the required loans are expected to be financed by Chinese financiers.

It was disclosed by Nigerian Transport Minister Mua’zu Sambo during a press briefing on Friday.

He insisted that the FG has covered its 15% obligations to contractors and is delayed by financing agreements for the remaining 85%.

What he said:

Transport Minister Mua’zu sambo noted that the Abuja-Kano and Port-Harcourt Maiduguri railway projects are ongoing but there is a challenge with the 85% foreign loan which has yet to be secured. obtained.

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“We conducted these two projects solely by ownership, which is part of the 15% that Nigeria is supposed 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.” He added.

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He also revealed that the take-off of Daura Transport University was also delayed by administrative challenges as it should have started in September but some challenges are being encountered.

“Some of the challenges are administrative and efforts are being made to resolve them with the National University Commission and the Federal Ministry of Education,” he said.

What you should know

Reminder Nairametrics reported last year in which the Federal Government revealed it was discussing with London-based Standard Chartered Bank Plc funding for two rail line projects expected to cost around $14.4 billion, compared to earlier plans to obtain loans from Chinese banks.

The 2 railway projects include the Eastern Line which connects Port Harcourt to Maiduguri and the extension of the Lagos-Ibadan railway line to Kano.

Former Transport Minister Rotimi Amaechi said:We have moved away from China in some of our projects. Finance Minister Zainab Ahmed is overseeing talks with the emerging-markets-focused financial institution on arranging infrastructure loans.

Earlier this year, while expressing concerns over the Kano-Kaduna railway project, he said “The Chinese don’t fund like they used to fund us before and so far we haven’t closed the loan for this project yet. We are therefore funding this project from the budget.

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