Rotimi Amaechi
June 15, 2021
Nigeria’s Minister of Transportation, Mr. Rotimi Amaechi has disclosed that the federal government had so far repaid over $150 million out of the $500 million facility secured by the administration of former President Goodluck Jonathan for the Abuja-Kaduna railway.
Amaechi, who featured on ‘The Morning Show,’ programme on ARISE NEWS added that monthly revenue from the Abuja-Kaduna railway operation has increased from N70 million to N350 million as of May.
He also refuted the suggestion that some obnoxious clauses in the Chinese loan agreements may lead to mortgaging Nigeria’s assets in the case of default.
“When you take the loan, you are expected to pay back and as we are talking today we are paying back.
“Under the regime of former President Goodluck Jonathan, the loan for Abuja – Kaduna was about $500 million. As of today, we have paid over $150 million on that loan.
“And Nigeria has never defaulted when it comes to loan repayment. And I don’t also expect that we will default on any other loan we have taken”.
“The loan for Ibadan-Kano is about $1.5 billion. The rest of $500 million came from our budget. I expect that whatever loans we take we will be able to pay.
“I am not aware that there is any clause in the loan agreement that hands over any of our national assets to China.
“Yes, in default they go to court and it depends on the outcome of the court case, but I am not aware that there is anything in all the clauses signed by this government or the previous government of Goodluck Jonathan that mortgaged any of our national assets.”
According to him, the total reconstruction of the narrow gauge line of the Port Harcourt to Maiduguri railway as well as that of Kano -Maradi will commence in June.
He added that the Lagos-Kano narrow gauge is currently being negotiated with different interest groups willing to rehabilitate it.
He explained: “What we are going to start this June is the total reconstruction of the narrow gauge line. We are rehabilitating Port Harcourt -Maiduguri and at the same time the president has directed that contract be awarded for the standard gauge, which should be funded when the next government comes.
“But the difference between the narrow gauge and the standard gauge is just the speed. The Lagos -Kano narrow gauge is the one we are negotiating with different interest groups who want to rehabilitate.
“That one is for rehabilitation. And when they finish rehabilitation, they will then run it by themselves and make their money and pay themselves back. We’ve not even commenced negotiation.”
Amaechi said more Chinese loans would be needed to extend the railway services to other states.
He said although the Lagos-Ibadan rail line had been completed, the services were still skeletal because it would take six months to test equipment to ensure they are in perfect condition.
He, however, stated that to extend the railway service from Ibadan to Osogbo and from Kano to Kaduna as well as other states in the country, the country would need to get more Chinese loans of which negotiations were already in progress.
“It takes six months to know that that equipment is in perfect condition. We would continue to test the equipment so that we do not have any train accidents. So we are moving from just two services in a day to four. It will be a gradual progression and I believe that by the end of the year, we will be doing 16 trips in a day,” the minister said.
He also said the continuation of the rail line would only commence when the Chinese loan was obtained, adding that the ministry has already mobilised contractors with some funds pending when the implementation of the loan facility would be concluded.
“As soon as we get the Chinese loan, we would commence the construction of Ibadan to Abuja, but before the end of this month, we should commence some of the Kano-Kaduna rail. We have already mobilised the contractors with some funds and we would fund it initially from our budget pending when the implementation of the loan facility would be concluded”, Amaechi said.
