Buhari Writes NASS, Seeks To Borrow $5.851bn For Railway Projects
Pres. Buhari writes National Assembly, seeks approval to borrow $5.851bn for railway projects
President Muhammadu Buhari has written a letter to the National Assembly, requesting for approval to borrow $5.851 billion for the upgrade of various sections of the Nigerian railway.
In the letter written separately to Senate President Bukola Saraki and Speaker of the house of representatives Yakubu Dogara, President Buhari asked for speedy consideration of his request so that his administration can access the China-African fund provided in the 2016-2018 external borrowing plan.
According to President Buhari, the loan which is limited, is made open for all countries in the continent and it is award to any country on first come, first service basis. The letter in part reads
“I wish to refer to my earlier letter with respect to the above subject and to inform the distinguished senate that the China Exim bank has approved our request for a loan to execute the Lagos-Kano railway modernisation project, Lagos-Ibadan segment for a sum of $1.231 billion. The China government has also informed us that the approval of the Lagos-Kano railway modernisation project, Kano-Kaduna segment and coastal railway project, the Lagos-Calabar segment are imminent.
China Exim supported projects; Lagos-Kano modernisation projects, Lagos-Ibadan segment $1.231 billion; Lagos-Kano railway modernisation project, Kano-Kaduna segment $1.146 billion and coastal railway project, the Lagos-Calabar segment 3.474 billion, making a total of 5.851 billion. As you are aware the funds available under the China-African fund are limited and loan applications from all over Africa countries are funded based on first come, first serve and therefore there is an urgent need to sign these loans as soon as they are approved or we may loose out in the event that we delayed in signing the loan agreement.
These loans form part of the overall money for the rail strategy. We are in the process of completing the concession of the port Harcourt Maiduguri line to immediately link the eastern part of the nation. We fully intend to source further concessioning funding to ultimately upgrade this critical line to high speed standard gauge. These projects form the overall plan to resuscitate the rail transport across the nation and thereby drive inclusive growth”.