Buhari writes NASS to expedite action on $5. 85bn Chinese loan
President Muhammadu Buhari on Wednesday appealed to the National Assembly to expedite the approval of the $5.851 billion loan request his administration plans to obtain from the Chinese government for the upgrading of the nation’s rail infrastructure.
The president warned in his letter which was read by Speaker Yakubu Dogara that following the approval by the Chinese authorities to grant Nigeria the $5. 85billion loan, the country stands the risk of losing the facility if the National Assembly delays in assenting to the obtaining of the foreign loan.
In the letter, Buhari said there was need for the legislature to urgently approve the loans on time to enable the country access the China -African fund which is provided for in the 2016-2018 external borrowing rolling plan.
He stressed that the China -African fund is limited and applications from the Africa continent are funded by the Chinese based on first come, first serve basis.
The president informed the lawmakers that the earmarked rail projects form part of the overall plan by the federal government to resuscitate the rail transport system across the country and drive economic growth.
“I wish to refer to my earlier letter with respect to the above subject and to inform the House that the China Exim Bank has approved our request for a loan to execute the Lagos-Kano railway modernisation project, Lagos-Ibadan segment for a sum of $1.231 billion.
“China has also informed us that the approval of the Lagos-Kano railway modernisation project, Kano-Kaduna segment and coastal railway project, the Lagos-Calabar segment are eminent.
“The China Exim Bank supported projects are the Lagos-Kano modernisation projects, Lagos-Ibadan segment $1.231 billion; Lagos-Kano railway modernisation project, Kano-Kaduna segment $1.146 billion and coastal railway project, the Lagos-Calabar segment $3.474 billion, making a total of $5.851 billion.
“As you are aware the funds available under the China African fund are limited and loan applications from all over Africa are funded based on first come, first serve and therefore there is an urgent need to sign these loans as soon as they are approved or we may loose out in the event that we delayed in signing the loan agreement.
“These loans form part of the overall money for the rail strategy. We are in the process of completing the concession of the Port- Harcourt -Maiduguri line to immediately link the eastern part of the nation.
“We fully intend to source further concessioning funding to ultimately upgrade this critical line to high speed standard gauge. These projects form the overall plan to resuscitate the rail transport across the nation and thereby drive inclusive growth,” Buhari stated in his letter.
