Amaechi Reveals FG Borrowed $2.5bn from China for Construction of Lagos-Ibadan Rail

Amaechi Reveals FG Borrowed $2.5bn from China for Construction of Lagos-Ibadan Rail

- A loan was taken by the Nigerian government to construct the Lagos-Ibadan railway, the minister of transportation, Rotimi Amaechi, has disclosed

- Amaechi stated that the government borrowed about $2.5 billion from China Exim Bank

- According to him, it was the government’s decision to extend the rail line to the nation’s seaports

PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!

The federal government has borrowed about $2.5 billion from China Exim Bank for the construction of the Lagos to Ibadan railway project.

Rotimi Amaechi, the minister of transportation, made the disclosure during an exclusive interview on Channels Television’s Newsnight which aired on Monday, March 29.

He explained that it was the government's decision to extend the rail line to the seaport in Apapa which was not in the original design. Amaechi added that the railway extension was for economic benefit.

Read also

President Buhari, NASS leaders hold crucial meeting over security, COVID-19 vaccine

Amaechi reveals FG borrowed $2.5bn from China for construction of Lagos-Ibadan Rail
According to Ameachi, the federal government borrowed $2.5billion to construct a rail line from Lagos to Ibadan. Photo credit: @ChibuikeAmaechi
Source: Twitter

The minister went on to note that the two basic loan facilities presented by the Ministry of Transportation have been approved by the Federal Executive Council (FEC).

Premium Times had earlier reported that the Nigerian government secured $1.5 billion counterpart funding from China for the Lagos-Ibadan rail project.

Amaechi who appeared before a Senate committee on land transport to give a report of his ministry’s budget explained that the funding had been approved by China and was being processed by the China Exim Bank.

Legit.ng recalls that back in 2020, the House of Representatives alleged that federal government officials signed empty repayment loan documents for the development of the Nigerian rail sector even before the terms of the loans were negotiated.

PAY ATTENTION: Install our latest app for Android, read the best news on Nigeria’s #1 news app

Meanwhile, the federal government signed a $1.959 billion contract document for the commencement of the Kano-Maradi and Kano-Dutse railway project.

Read also

Breaking: Crisis tears PDP apart as party suspends former Niger governor Babangida Aliyu

Buhari Sallahu, a personal assistant to President Muhammadu Buhari on broadcast media, made this known on Monday, January 11.

Representing the federal government in the signing of the contract was the minister of transport, who disclosed that the project contractor, Mota-Engil Group, also agreed "to build a University as part of their CSR while working on the project."

Source: Legit Nigeria

Online view pixel