The Federal Government in conjunction with Kano State Government are in advance talks with the China EXIM Bank for multi-billion dollar loans to execute two rail projects.
They have asked the bank for 85 percent of the $1.85 billion needed for an Intra-City Rail project. Minister of Transport, Rotimi Amaechi, during a visit to the Kano State Governor, Abdullahi Ganduje reveals.
Mr. Amaechi said that President Muhammadu Buhari has approved the construction of the Kano/Kaduna railway.
“I think the president is doing that because the economy of Kano is also large in the country and between Kano and Lagos, we have about a total of 30 million tonnes of freight, and that will help in conveying some of them to Abuja, while we extend the construction to Lagos,” he said.
The minister further revealed plans to put more locomotives on the Lagos/Kano narrow gauge rail before June.
“We are trying to bring in about 100 locomotives to move between Lagos – Kano – Funtua and Port Harcourt – Gombe”. This is welcome development to the transport industry, one thing must be pointed though, the terms of this loan must be that the customers at the end of the day do not end up paying over the odds for transportation in a bid to repay the loan.
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