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FG promises completion of all rail projects with multi-billion dollar loans

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FG promises completion of all rail projects with multi-billion dollar loans

Mu’azu Sambo Jaji

Federal Government has promised to complete the ongoing rail projects across the country with multi-billion dollar loans from financial institutions based in China, Portugal and Turkey.

Minister of Transportation, Mu’azu Jaji Sambo, who made the promise on Thursday when he appeared before the Joint National Assembly Committee on Land and Marine Transport, chaired by Senator Danjuma Goje (APC Gombe Central), explained that the ministry was committed to the implementation of the Nigeria Railway modernization project.

Sambo said the railway network was being progressively expanded through yearly budgetary appropriations since the federal 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 that the Lagos – Ibadan segment of the Lagos – Kano and Itakpe to Warri railway projects were fully operational and receiving patronage from the general public.

FG promises completion of all rail projects with multi-billion dollar loans

To reach practical completion on the projects, the minister said some aspects of works, including construction of overpass bridges, connection to the national grid and other ancillary provisions had to be completed.

Sambo further informed that adequate funds need to be provided in the 2023 budget to facilitate the practical completion of the projects..

The minister lamented the sad occurrence on the Abuja – Kaduna Rail incident earlier in the year and said plans were ongoing to resume service there.

He said “with the release of those abducted, the ministry plans to commence operation on the line, but not without taking proper precaution”, explaining that necessary security gadgets would be installed to monitor the line and forestall a reoccurrence.

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

The minister told the lawmakers that his ministry had proposed a total capital budget of N92, 251,422,746 and overhead of N382, 185, 472

He added that 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% had been released to date.

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

He said the sum of N180, 623,089.34 of the released amount was expended as at 25th October, 2022.

Speaking, chairman of the Joint National Assembly Committee expressed concern over the extension of the implementation of the capital component of the yearly budget beyond each fiscal year.

“The extension of the implementation of the Capital component of the annual budget by three months, had defeated the success recorded by the 9th National Assembly to reverse the country’s budget cycle to January to December,” Senator Goje said.

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FG promises completion of all rail projects with multi-billion dollar loans

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