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“China Refuses To Loan Us Money” – FG Gives Update On Uncompleted Rail Projects (Details below)



The Minister of Transportation, Mua’zu Sambo, had said the Nigerian government is waiting for more loans from China to complete the construction of the Abuja-Kano and Port-Harcourt-Maiduguri rail projects.

Sambo, made this known at a press conference in Abuja on Friday said the inability of the government to secure 85 percent foreign loan meant for the project was delaying the completion of the projects.

The minister further explained that in the absence of the loans, the projects were being run through appropriation funds which are not enough to complete them.

Sambo words:

“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 these 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.” China reduce lending Edujandon.com had earlier report China has announced that it is scaling back lending to African countries. China is Nigeria’s biggest lender, with a total indebtedness of $3.9 billion as of June 30, 2022.

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Edujandon.com had earlier reported that President Muhammadu Buhari stirred heated reactions from Nigerians when he tabled a fresh request for the approval of another set of loans before the Senate.

The Nigerian leader sought approval from the National Assembly to borrow $4,054,476,863.00, €710 million, and a grant of $125 million. Many Nigerians are against the borrowing spree of the current administration as it seeks to provide more infrastructure amid dwindling revenue.

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