Amaechi finds it difficult to explain how single gauge rail line structure fits the 21st century during his ministry’s budget defence
By Uzor Odigbo
The Transport Minister, Chibuike Rotimi Amaechi, has said lack of funds was the reason his ministry was unable to deliver timely on some of its railway projects in the country.
He said his ministry borrows to fund the projects because it cannot afford them, and it is currently finding it difficult to raise money for the Lagos –Calabar railway line, which goes through all the South-South states and those in other parts of the country.
The Minister, while presenting the Ministry’s 2022 Budget to the Chairman, Joint Committee on Marine Transport, Senator Danjuma Goje, during his budget defence at the National Assembly, on Thursday, revealed that it has only borrowed $1.4 billion for the Lagos – Ibadan railway project.
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Amaechi said: “In terms of funding, take Kano-Maradi that you mentioned, $1.95 billion, that’s about one trillion naira. The Nigerian Ports Authority (NPA) and all the agencies around us put together, they cannot bring even up to N300 billion to fund that project out of N1 trillion. So that is why we borrowed, it is not as if we just want to borrow.
“Let’s take Port Harcourt – Maiduguri; at $3.020 billion, we are talking about nearly N2 trillion. Which of the agencies, even when you put them together can bring this kind of money? We borrow basically because the agencies, no matter how they try, cannot fund it. There is need for external funding,” he said.
Amaechi added: “I did say in my last interview with ThisDay that this money has not been borrowed actually. If there is any money we have borrowed at all, it’s about $1.4 billion for Lagos – Ibadan. We have not gotten money for Kano – Kaduna; Port Harcourt – Maiduguri. The only thing is that when you hear that cabinet say ‘approved’, then people say Amaechi has gotten money. We have not gotten one kobo. I repeat to Nigerians, the only money we have gotten is $1.4 billion for Lagos to Ibadan, no other money.”
Amaechi explained further: “The cost of construction of Port Harcourt to Maiduguri is $3.020 billion, the cost of construction for Kano Maradi is $1.9 billion. It is easier to raise $1.9 billion than to raise 14 billion. Yesterday, I had a meeting in my office; we are finding it difficult to raise the money for Lagos Calabar, which goes through all the South South states. Why? There is nowhere in the world where they have $11 billion contract. Anywhere you see please call me lets go and see the place.
“The funders are telling us that we need to break it into four; do this one for two years, and another for three years until you get all the money. Now for us, it is not as if this government has not approved standard gauge for Port Harcourt Maiduguri, but what is politically and practically possible is that they must have a railway before we leave. Or if they don’t have it, they must see that we are constructing before we leave, which we have started already.
“Now to do that, I think we need to do what I think is practicable, which is to first reconstruct the old one while looking for money for the new one. I thought that should please honourable Assadi. Finally like I said, it will be wrong for honourable Assadi to say since we have a narrow gauge, we give a narrow gauge to everybody.
“It is important to repeat to the House that I from Ikwere and Port Harcourt is Ikwere and I will not deliberately undo my people; and that we have an approval to do a standard gauge from Port Harcourt to Maiduguri. But if you have where we can get the money please come forward and I will go and borrow. Kano to Maradi is just 20 kilometres from Jibia into Maradi, and those 20 kilometres of this is not up to $100 million,” Amaechi.
The Minister mentioned that the total capital budget is N147, 931,691, 294 with an overhead of N258, 799, 998.
Amaechi explained that the proposal is to make significant progress on all ongoing projects and to complete and deliver modern rail services, provide an efficient and cost-effective alternative transport system that will promote economic growth and also job creation.
He further stated that the government has prioritised the ongoing railway projects to achieve the desired goals and commence some new ones that will serve as the transportation backbone and hub for economic development.
The chairman of the Joint Budget Committee, Sen. Goje also stated that eyes would be on the issue of revenue due to the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN).
“Our committee will continue to extend all the necessary support needed by the merchant sector to boost their revenue generation and increase their remittals to the federation’s account”, he added