The Federal Government of Nigeria plans to conclude negotiations with China regarding the Lagos-Calabar rail project worth $11.117 billion in June 2017, Acting President, Yemi Osinbajo, revealed.

“The federal government has already provided its portion of funding for the Lagos-Calabar route and expects that negotiations with the foreign component of the funding will be finalized within the next three months,” he said.

According to him, the national project once commenced would create 500,000 jobs and support efforts to diversify the economy and enhance the country’s export potentials. “A vibrant railway system will confer many benefits on the society. Our ultimate goal is to restore a railway using culture for both commercial and personal transportation. We are confident that the national rail project will create up to 500,000 jobs. Aside, it will facilitate the movement of up to 3.2 million tonnes of cargo per annum,” Osinbajo added.

The first phase of the project will cover Calabar, Uyo, Aba and Port Harcourt. Otueke, Yenagoa, Ughelli, Warri, Sapele, Benin, Agbor, Asaba, Onitsha, Ijebu Ode, Lagos, will follow within another two years.

President Muhammadu Buhari in June 2016, signed an agreement with China Civil Engineering Construction Company (CCECC) for the construction of the coastal railway project. Under the agreement, the government negotiated the cost of the project from $11.917 billion initially to the current $11.117 billion, thus $800 million less.

Anita Fatunji