Nigerian official says Chinese government yet to approve the $5.3bn loan being sought by Nigerian government to build the critical infrastructure
By Demilade Adeniyi
Only funding could stall the construction of the Ibadan-Kano standard Gauge rail line project, the Federal Government said on Saturday.
The Minister of Transportation Rotimi Amaechi who made this known said work would commence only when the Chinese government approves the $5.3 billion loan meant for the project to Nigeria.
Speaking on an interview programme on the Nigeria Television Authority (NTA), in Abuja, Amaechi said to complete all its planned rail projects, Nigeria has relied largely on loans from the Chinese government.
The minister said other investors who showed interest in helping Nigeria later developed cold feet.
Amaechi said though the Federal Government had approved the contract a year ago, there has not been any cash backing.
He said: “We are waiting for the Chinese government and bank to approve the $5.3 billion to construct the Ibadan-Kano. What was approved a year ago was the contract.
“The moment I announced that the Federal Government has awarded a contract of $5.3 billion to CCECC to construct Ibadan-Kano rail line, they assumed the money has come in, no.
“Up to now, we have not gotten the money a year after we have applied for the loan. We have almost finished the Lagos-Ibadan rail line but if we do not get the loan now, we may not be able to commence the final stretch of the project,” he added.
Amaechi also said the Ibadan-Kano rail would link six state capitals – Kaduna-Kano-Abuja-Minna-Ilorin-Oshogbo-Ibadan and cargoes could be moved more efficiently to Kano from the ports in Lagos.
Reacting on the issue of wet cargoes on the road causing accidents, he said “cargoes can only go from Lagos to Ibadan for now”.
He said when the Ibadan to Kano rail project is completed, “wet and dry cargoes can be transported from Lagos to Kano.”
“Nigeria should be more patient with the Ministry of Transportation over the issue of wet cargoes. Currently, we are trying to construct the railway into the seaports to enable us transport both wet or dry cargoes to various destinations.
“The moment we conclude that, we will be able to move wet cargoes all the way to Kano from Lagos. We should also commence the construction of Port Harcourt to Maiduguri. We should be able to move cargoes from Bonny to Maiduguri,” he said.
Amaechi said the ministry of finance “is in charge of funding of rail projects and not the ministry of transportation,” adding that “they have the presidential approval to borrow money to fund projects.”