The Federal Government of Nigeria has secured a $1.5 billion counterpart loan from China to fund the Lagos-Ibadan rail project expected to commence by March this year. This was declared by the Minister of Transportation, Rotimi Amaechi, on Wednesday.

According to him, the project which the federal government has already released a N72 billion counterpart funding for, would begin before the end of the first quarter of this year.

He noted that the Lagos-Ibadan rail line is part of the Lagos-Kano railway project, which is one of the most important infrastructural target of the FG. Amaechi noted that the ministry has also put measures in place to kick-start another rail project from Apapa seaport to Ogun State.

“The counterpart funding is ready but don’t forget that we are borrowing the money from China. The China Exim Bank is processing it. Our 15% is ready. So, we are waiting for China Exim Bank. They have managed to approve $1.5 billion for the Lagos-Ibadan line. It is also envisaged that segment three of the Lagos-Kano rail project, which is the Kano-Kaduna stretch, as well as the first phase of the coastal railway line Lagos-Calabar, commencing from Calabar to Port Harcourt with extension to the Onne Deep Seaport will commence after the conclusion of the negotiation of a financing loan agreement,” he said.

Anita Fatunji