While the Nigerian Federal Government says that it has already secured the loan from the China Exim Bank, Minister of Transport Rotimi Amaechi says that the Senate is delaying the project. He urged the members to quickly approve the loan.
The transport minister spoke at a hearing of the Senate Committee on Land Transports, presenting the status report of the 2016 budget and present the 2017 budget.
The foundation of the Lagos-Ibadan Segment Two of the Lagos-Kano rail project would be laid before the 31st of March. He said that the China Exim Bank was ready to loan $1.5 billion to the country for the rail project. However, the Senate's approval was needed before the agreement can be signed.
"Our target is to commence from the Apapa seaport down to Ogun and then to Ibadan. That is our plan. 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 percent is ready. The bank has released $1.5 billion," he said at the hearing.
Amaechi urged the Senate to approve the loan so that the project can begin.
"All these ongoing rail projects not completed last year have been reintroduced into the 2017 budget. The ministry is in the process of procuring additional locomotives and coaches to meet the rising demand of passenger traffic of the Abuja (Idu)-Kaduna (Rigasa) rail line," he added.
According to Gbenga Ashafa, chair of the Senate committee, the body will be working with the transport minister to consolidate on the achievements and performances recorded last year.
An immediate approval of the loan will benefit not only the Nigerian transport ministry, but it will help the citizens of the country who are in need of a better mass transport system. Hopefully, Amaechi will be successful in convincing the members of the Senate to get the loan approved.