Nigeria to incur more debt as govt mulls Portuguese, Turkish loans for railway projects

Transport Minister Mu’azu Sambo has informed the Senate that the Federal Government is considering asking financial institutions in China, Portugal, and Turkey for multi-billion dollar loans to finish up current train projects throughout the nation.

Sambo disclosed this before the Joint National Assembly Committee on Land and Marine Transport, which is presided over by Senator Danjuma Goje, during plenary in Abuja, on Thursday.

He clarified that the ministry was dedicated to seeing that the Nigeria Railway Modernization project was carried out.

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The Minister further claimed that because the federal government was having trouble collecting loan counterpart funding, the railway network was gradually being enlarged through annual budgetary appropriations.

The Minister said, “Currently, the implementation of the Kaduna-Kano, Port Harcourt to Maiduguri and Kano – Maradi Segments of the Railway Modernization is ongoing with the Federal Government counterpart funding in the 2022 appropriation.

“The Ministry hopes that the Federal Ministry of Finance concludes negotiation of the loans with infrastructure development finance institutions of Chinese, Portuguese and Turkish origin to implement the projects.

“To ensure finalising and signing of the loan agreements, evidence of source of funding of the balance of the advance payment and other aspects of work to be financed directly by the Federal Government has to be made available to these financial institutions through adequate budgetary provisions in the year 2023 budget and subsequent budgets.”

The Lagos – Ibadan segment of the Itakpe to Warri and Lagos – Kano railway projects, he added, were fully operational and enjoying huge patronage with the general public.

Data released by the Debt Management Office (DMO), has shown that Nigeria’s total debt as at December 31, 2021, was N39.55 trillion. When this is divided by an estimated population of 206 million according to World Bank data, it gives N191,889.55 owed by every individual Nigeria.

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