FG to complete Kaduna-Kano, other rail projects with Chinese, Portuguese, Turkish loans

• Only 35% of 2022 capital vote released so far

The Federal Government says it will complete the Kaduna-Kano, Port Harcourt-Maiduguri and Kano-Maradi rail projects with loans from financial institutions based in China, Portugal and Turkey.

Minister of Transportation, Mu’azu Jaji Sambo, stated this on Thursday while addressing the Joint National Assembly Committees on Land and Marine Transport, chaired by Senator Danjuma Goje during the 2023 budget defence session.

He said the railway network was being progressively expanded through yearly budgetary appropriations since the government was facing challenges in securing counterpart funding through loans.

He 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 the 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.”

He also said the Lagos-Ibadan segment of the Lagos-Kano and Itakpe to Warri railway projects were fully operational and receiving patronage by members of the public.

He said the Abuja-Kaduna train service would resume with precaution.

He said, “With the release of those abducted, the Ministry plans to commence operation on the line, but not without taking proper precaution.”

He said necessary security gadgets would be installed to monitor the line and forestall a reoccurrence.

He expressed the hope that members of the National Assembly would assist the ministry in achieving the plan.

Sambo said the ministry had proposed a total capital budget of N92, 251,422,746 and overhead of N382, 185, 472.

He said the total capital appropriation of the ministry for 2022 was N147, 549,080,677 out of which N52,134,727,253.22 representing 35.33 per cent had been released to date.

He said N38,904,208,345 had been utilized as of 25 October, 2022, just as the sum of N209, 299,998.81 was released out of N358, 799,998 appropriated for overhead expenditure.