Observers have started picking holes from the funding approval given by the Federal Executive Council (FEC) on Wednesday, to the sum of N453.90bn for the procurement of rolling stock, operation and maintenance equipment for the Kano-Maradi standard gauge rail line currently under construction when the same government had earlier in 2021, informed Nigerians that funding will come from EU and German banks. Maradi is a commercial town in Niger Republic.
The Minister of Transportation, Mu’azu Sambo, disclosed this to State House correspondents after this week’s Council meeting chaired by the President Muhammadu Buhari, at the Presidential Villa, Abuja.
Business Hilights recalls that the doomy sold to Nigerians by the former Minister of Transportation; Rotimi Amaechi was that the brain behind the Niger rail extension was to encourage Niger Republic export and import goods via Nigeria than the current Benin Republic they are using. He claimed that if Niger starts to use Lagos ports, Nigeria will earn more revenue but was silent on why Niger Republic is not part of the funding.
However, many analysts who were aware of a news report in February 2021, where Nigeria’s Ambassador to Germany, Alhaji Yusuf Tugar, said the Nigerian government has attracted funding from the German state bank, KfW, and European export credit agencies for the construction of the 283km Kano-Maradi rail line.
The report noted that Tugar spoke shortly after revalidating his membership of the All Progressive Party APC in his Udobo ward in Gamawa local government area in Bauchi State.
He said contrary to the opinions of some Nigerians, the federal government has been able to secure funding support from Europe for the rail project.
According to him, “The Federal Government has attracted funding from the German state bank KfW, European export credit agencies and Africa Finance in a venture that will see Mota-Engil constructing the 283km line connecting Kano with Maradi in Niger Republic,” he said.
“The rail line will also cover other cities such as Danbatta, Kazaure, Daura, Mashi, Katsina and Jibiya.
But speaking on Wednesday, the Minister of Transportation, Alhaji Muazu Sambo explained that “The memorandum sought council’s consideration and approval for the award of contract for the procurement of rolling stock, operation or maintenance equipment for the Kano-Maradi standard gauge rail line that is currently under construction.
“The contract was awarded to MSSRs Mota-Engil Nigeria Limited, who are the contractors handling this particular project in the sum of $984,722,302.5 inclusive of seven and a half per cent VAT with a completion period of four years.”
Otherwise, the minister did not make any mention of foreign funding again.
