The delay in the completion of the Lagos-Kano rail line is hinged on an outstanding funding deficit of $656 million.
Minister of Transportation, Rotimi Amaechi, made the disclosure while defending the budget of his ministry at the National Assembly on Friday, November 6.
He said what the government needed for the rail line which has already reached 92 per cent completion would be $656m.
“Under the railway modern programme, I am happy to report that the construction of the Lagos-Ibadan Standard Gauge line has reached 92 per cent project completion.
“However, for the project to achieve full loan drawdown from our co-financier, China EXIM Bank, and attain practical completion for it to be used for the intended purpose, some aspects of works involving construction of upgraded railway stations, signalling and telecommunication system, power supply scheme and construction of pedestrian and overpass bridges have to be completed.
“This additional and extra works amounting to $656m which is to be financed 100 per cent by the Federal Government of Nigeria has been approved by the Federal Executive Council for implementation.
“Similarly, for the implementation of the Ibadan-Kano railway, which is the outstanding segment of the Lagos-Kano railway project, one of the conditions precedent to signing of the loan agreement is the release of advance payment in the sum of $864m, out of which government has released the sum of $218.7m as part payment, leaving a balance of $644.3m.”
