Foreign Loan Hinders Abuja-Kano, Port-Harcourt Maiduguri Rail Project — Sambo

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The Ministry of Transportation said construction of the Abuja-Kano and Port-Harcourt-Maiduguri rail projects was being delayed by Federal Government’s delay in securing the 85 per cent foreign loan meant for the project.

The Minister of Transportation, Mua’zu sambo said this while addressing newsmen on Friday in Abuja.

The News Agency of Nigeria(NAN) reports that the 85 per cent loan meant for the rail project was expected to come from Chinese financiers.

According to him, the projects, which are on-going, are being run through appropriation funds.

Foreign Loan Hinders Abuja-Kano, Port-Harcourt Maiduguri Rail Project — Sambo

He said:“ The Abuja-Kano and Port-Harcourt Maiduguri rail projects are on-going but there is a challenge of the 85 per cent foreign loan yet to be secured.

“We have been driving this two projects solely through appropriation, which is part of the 15 per cent which Nigeria is supposed to contribute.

“Indeed I can tell you for sure that with respect to the Kaduna-Kano rail we have paid completely to the contractor the 15 per cent obligation of the Federal Government.

“Until we have the 85 per cent component, the project will have to be continually funded through the appropriation.’’

Source: Vanguard Newspaper