Transport Minister Mu’azu Sambo has informed the Senate that the Federal Government is considering asking financial institutions in China, Portugal, and Turkey for multi-billion dollar loans to finish up current train projects throughout the nation, IgbereTV reports
Sambo disclosed this before the Joint National Assembly Committee on Land and Marine Transport, which is presided over by Senator Danjuma Goje, during plenary in Abuja, on Thursday.
He clarified that the ministry was dedicated to seeing that the Nigeria Railway Modernization project was carried out.
The Minister further claimed that because the federal government was having trouble collecting loan counterpart funding, the railway network was gradually being enlarged through annual budgetary appropriations.
The Minister said, “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 negotiation of the loans with infrastructure development finance institutions of Chinese, Portuguese and Turkish origin to implement the projects.
“To ensure finalising and signing of the loan agreements, evidence of 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
