Muhammadu Buhari government said in Abuja earlier this month
the rail projects will be playing a significant role in the infrastructure development plan, but a standoff with China is causing a delay in projects.
While addressing the media, Chibuike Rotimi Amaechi, the Minister of Transportation of Nigeria, said, “We are waiting on the Chinese to provide us with the loans we applied for, and they’ve not replied until today. They kept delaying us,” Amaechi stated in a press conference in Nigeria’s capital Abuja. “Shall we have to wait for them forever? The answer is no.”
In July 2021, the Nigerian government signed a deal with Standard Chartered to fund $3.02 billion for the ongoing railway project, Port Harcourt-to-Maiduguri, Amaechi revealed that.
South Africa is one of the biggest suppliers in the region, and they are supplying around 88% of China’s iron ores/concentrates imports from Africa.
However, it declined from 100% in 2000 and, according to data from the Nigerian Debt Management Office, Africa’s debt to China crossed 4.1 bn in September 2021. Analysts strongly believe that Nigeria’s debt is the reason for China’s hesitancy.
The debt agency said the loans tied to infrastructure projects such as road, rail, power, communication, and agriculture. Chinese officials do not give any response to a request for comment.
Amaechi stated that for supervising three to four rail projects, Federal Executive Council (FCP) approved $187.7 million for the contractors.
During the press conference, the minister also said they also looked for Credit Suisse to fund Kano to Maradi line. This line will connect northern states Kano, Jigawa and Katsina.
He further added the bank is yet not done with financial closure, but they have approved some level of funding for Kano-Maradi.”
All those rail projects will add more power, elevate the transport Networks, and renovate the power supply in Nigeria.
The 157 kilometre part of the Lagos-Kano railway to Ibadan is incomplete due to insufficient funds. The government has already utilised a $ 1.3 billion loan from China Eximbank.
