We’re running Lagos-Ibadan rail with Abuja-Kaduna funds – Minister

Minister of Transportation, Rotimi Amaechi, says funds generated from the Abuja-Kaduna rail are being used to sustain the operation of the recently inaugurated Lagos-Ibadan standard gauge rail line.

Although he did not disclose how much was being used for this purpose, he only said about N300m was being generated from the Abuja-Kaduna rail every month, out of N100m was being remitted to the coffers of the Federal Government.

The minister made this known while speaking as a guest on Channels Television’s Hard Copy.

He said, “We make N300m per month from the Abuja-Kaduna train.

“Currently, we are running Lagos-Ibadan from the money we are making from Abuja-Kaduna rail service; at the end of the day, we pay back over N100m to the Federal Government.”

The minister noted that his ministry was beginning to contribute to the nation’s economic growth.

Amaechi also said the FG was making plans to add 16 more trains to the Lagos-Ibadan rail line, stressing that this would increase revenue generation from that line.

Speaking on the debt accrued in the course of developing the rail transport system, the minister expressed confidence that Nigeria has the capacity to pay back and that the nation has commenced repayment.

“Nigeria has the capacity to pay its loan. Out of $500m President Goodluck Jonathan borrowed for Abuja-Kaduna rail project, at the end of the day, we have paid back over $100m to the Federal Government,” he said.

He also said more developments would be coming to the rail sector to boost the revenue generated by the ministry, and support the FG in settling its debts.