China Backs Down On $8.3bn Railway Projects Loan (Details)

China Backs Down On $8.3bn Railway Projects Loan (Details)

As Nigeria is battling to secure funds to bridge huge infrastructure gap in both transportation and energy sectors,  Moody’s Investor Service estimates that Nigeria needs at least $3 trillion over 30 years to build roads and power plants to close a huge infrastructure gap.

Meanwhile, the federal government is currently frustrated and unable to drive its huge railway projects as ominous dark clouds surround the country’s hope to get a balance of the loan earlier promised by China.

It has become obvious that China is not interested in funding the project and the federal government said it won’t wait any longer for the Export-Import Bank of China to finance a major part of a crucial railway project.

Read Also What I’ll Do For Nigerians If Allowed To Lead – Saraki Reveals

The government has received from the state-owned lender only about 15 per cent of the funding required for a line originally estimated to cost $8.3 billion that will link the commercial hub of Lagos to the northern city of Kano.

President Muhammadu Buhari’s administration has been expecting a response from the Chinese authorities regarding the rest of the loans but hasn’t received a reply, according to Transport Minister Rotimi Amaechi.

“We were waiting, They kept delaying us,” said frustrated Amaechi.

China’s hesitancy is a fresh setback for Buhari’s plan to link all major regions of the country with railway lines by the time he leaves office next year.

Read Also Why Buhari Govt Is Seeking More Loans From Europe – Amaechi Speaks

The government has since approached Standard Chartered Plc and unidentified Chinese commercial banks to help fund the project, Amaechi said.

Standard Chartered has approved some level of funding, he said. The London-based lender did not respond to Bloomberg calls for comment.

The Chinese Embassy in Abuja didn’t immediately respond to an email seeking comment.

For more News Join Our WhatsApp group with this link below

https://chat.whatsapp.com/HlD7kmxUzAc2lwlP7yuXzk