President
Muhammadu Buhari has requested for the approval of the National
Assembly to borrow $6.9b for infrastructural development.
File photo: Buhari, Dogara & Saraki
In a letter which was sent to the Senate President, Bukola Saraki
and speaker of the house of representatives, Yakubu Dogara, and read on
Wednesday, President Muhammadu Buhari sought the approval of the
national assembly to borrow $5.851 billion for the upgrade of various
sections of the Nigerian railway.
The president pleaded with the lawmakers to endorse the loan on
time in order to make the the country access the China-African fund
provided for in the 2016-2018 external borrowing plan, adding that the
fund was limited and applications from all over the continent are funded
on first come, first serve basis.
The president said these projects form part of the overall plan to
resuscitate the rail transport across the country and drive economic
growth.
“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 letter read.
“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.”
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