The Federal Executive Council (FEC) approved $11.17 billion to link Nigeria’s coastal cities through the Lagos-Calabar rail, in a bid to boost trade in Nigeria for export development.
This was disclosed by Lai Mohammed, Minister of Information and Culture, in a meeting with newsmen after the FEC meeting presided over by Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, according to the News Agency of Nigeria.
Mohammed revealed that Transport Minister, Rotimi Amaechi had presented 2 memos regarding boosting of rail projects in Nigeria. He said, “The first one actually has to do with the Kano-Jibia rail and the other one has to do with the Port Harcourt-Maidugiri rail.
“Actually what was approved today was funding to ensure that work starts immediately on those two rails.
“And then, also another memo that was approved today was the ratification of the president’s approval for the award of contract for the Lagos-Calabar Coastal Standard Gauge.’’
Mohammed added that the FEC has given the approval to commence the Lagos-Calabar Coastal rail, adding that the route is very important because, after the Lagos-Kano route, the Lagos-Calabar Coastal route will link all the coastal cities in the country.
“Actually, the proposed route alignment is as follows; it will go from Lagos to Sagamu, Sagamu to Ijebu-Ode, Ijebu-Ode to Ore, Ore to Benin City, Benin-City to Sapele, Sapele to Warri, Warri to Yenogoa, Yenegoa to Port Harcourt, Port Harcourt to Aba, Aba to Uyo, Uyo to Calabar, Calabar to Akamkpa to Ikom, Obudu Ranch with branch lines from Benin-City to Agbo, Ogwashi-ukwu, Asaba, Onitsha and Onitsha Bridge and then Port Harcourt to Onne Deep Sea Port.
“This particular route is very important especially for our coastal economy; the cost of the project is 11. 17 billion dollars,” the Minister said, adding that the project is expected to be completed in six years.
The Federal Government is currently discussing with the London-based bank, Standard Chartered Bank Plc, over the funding of 2 rail line projects expected to cost about $14.4 billion, as against the earlier plans to get the loans from Chinese banks.
This proposed arrangement is coming after the Nigerian government had already finalized the contract with the Nigerian subsidiary of the state-owned China Civil Engineering Construction Corp (CCECC) for the 2 deals.
The 2 rail projects include the eastern line that links Port Harcourt with Maiduguri and the extension of the Lagos-Ibadan rail line to Kano.
In case you missed it
- The Federal Government commenced discussions with London-based bank, Standard Chartered Bank Plc, over the funding of 2 rail line projects expected to cost about $14.4 billion, as against the earlier plans to get the loans from Chinese banks.
- This proposed arrangement is coming after the Nigerian government had already finalized the contract with the Nigerian subsidiary of the state-owned China Civil Engineering Construction Corp (CCECC) for the 2 deals.
- The 2 rail projects include the eastern line that links Port Harcourt with Maiduguri and the extension of the Lagos-Ibadan rail line to Kano.
