Rail projects: Adequate budgetary allocation needed for loan agreements, says minister

Mu’azu Sambo, minister of transportation, says adequate budgetary provision is needed to complete ongoing rail projects across the country.

Sambo spoke on Thursday when he appeared before the joint national assembly committee on land and marine transport, chaired by Danjuma Goje, senator representing Gombe central.

Hs said the ministry is equally committed to the implementation of the Nigeria railway modernisation project adding that the railway network is being expanded through yearly budgetary appropriations since the federal government is facing challenges in securing counterpart funding through loans.

“Currently, the implementation of the Kaduna-Kano, Port Harcourt to Maiduguri and Kano-Maradi segments of the railway modernisation is ongoing with the federal government counterpart funding in the 2022 appropriation,” he said.

“The ministry hopes that the federal ministry of finance concludes negotiation of the loans with infrastructure development finance institutions of 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.

“This is through adequate budgetary provisions in the year 2023 budget and subsequent budgets.”

Sambo also said the Lagos-Ibadan segment of the Lagos-Kano and Itakpe to Warri railway projects is fully operational and receiving patronage from the public.

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

“Adequate funds need to be provided in the 2023 budget to facilitate the practical completion of the projects,” he said.

Sambo also said plans are ongoing to resume service on the Abuja-Kaduna rail.

“With the release of those abducted, the ministry plans to commence operation on the line, but not without taking proper precaution,” he said.

Sambo said necessary security gadgets would be installed to monitor the line and forestall attacks.

He expressed hope that members of the national assembly would assist the ministry in achieving its plans.