As FG seeks $6bn fresh loan from China for Ibadan-Kano rail project

By Emma Ujah, Abuja Bureau Chief & Michael Eboh

ABUJA—Debt Management Office, DMO, has explained that loans obtained by the Federal Government from China represented only 8.5 per cent of Nigeria’s external debt and taken under concessionary terms.

Nigeria’s external debt stock as at the end of June stood at about $22. 083 billion.

This came as Minister of Transportation, Mr. Rotimi Amaechi, said, yesterday, the Federal Government was in talks with China for a loan of $6 billion to fund the construction of Ibadan-Kano rail line project.

The DMO said there was no reason for any form of apprehension over the loans from China, as there is no default in the repayment.

The debt management agency said in a statement, yesterday, that the loans were needed because they were being used to provide critical infrastructure in sectors, such as road, rail transport, aviation, water, agriculture and power.

It said: “The Debt Management Office, DMO, has observed that there have been various comments in recent times about borrowing by developing countries from China.

“The comments seem to have become heightened following the recent summit of the Forum on China-Africa Cooperation and claims of potential seizure of national assets by Chinese lenders in some African countries even though the claims have not been validated.

“Borrowing from China should not be seen from a negative perspective as they are being used to finance Nigeria’s infrastructural development at concessional terms. Moreover, China Exim loans are only one of the sources of multilateral and bilateral loans accessed by Nigeria and represented only about 8.5 per cent of Nigeria’s external debt as at June 30, 2018.”

 
FG seeks $6bn fresh loan from China for Ibadan-Kano rail project

Addressing newsmen in Abuja, Amaechi also stated that the Federal Government had approved $195 million to hire an Israeli company to train security personnel to better manage Nigeria’s waterways security.

Commenting on the rail project, Amaechi said: “We are currently in negotiations with the China EXIM Bank to get about $6 billion to do rail lines from Ibadan to Kano.

“It is a difficult decision. Why is it difficult? The money required is about $8 billion to do a double track but the Chinese are insisting that they cannot fund the double track.

“They are asking us to do a single track and they want it at Minna so that instead of going from Minna to Kaduna, we should go from Minna to Abuja and then join it from Abuja to Kaduna.

“But there are those who argue that we should not accept that, rather we should tell them to fund it in segments. This, however, does not make economic sense.”

Source: https://www.vanguardngr.com/2018/09/debt-owed-china-only-8-5-of-external-debt-dmo/amp/

Front page: Lalasticlala

Currently every Nigerian (excluding me) is owing. #150 000 , by the time buhari finish with you people, everyone of you will be owing like #10 000 000

This govt is showing all the signs of a vision less govt will show.

The comments seem to have become heightened following the recent summit of the Forum on China-Africa Cooperation and claims of potential seizure of national assets by Chinese lenders in some African countries even though the claims have not been validated.

China has taken over national assets though. They just recently took over port in Sri Lanka port. Their case is a different. The other story floating around sbout Nambia is fake though. The terms China dishing out pretty light and china isnt making much money. They mainly do it for political influence. Nigeria should still be careful though these arent free gifts.

I think Nigeria should be focusing on Lagos-Calabar rail line. I think the route is estimated 8 billion dollars aswell. Anyway can some explain why China would want those specific routes?

Front page: Lalasticlala

We are talking of Kano Kaduna Rail while you're busy discussing Ibadan Abuja. There is nothing like Ibadan Kano rail.

They're negotiating a loan to build Ibadan-Kano rail line.

Fariq:
We are talking of Kano Kaduna Rail while you're busy discussing Ibadan Abuja. There is nothing like Ibadan Kano rail.

APC government is mortgaging Nigeria into eternal indebtedness.Nigeria arise & vote out this rudderless government.

Blue3k:
They're negotiating a loan to build Ibadan-Kano rail line.

Which one is Ibadan Kano rail?

We have Lagos Kano railway which is divided in to 4 segments.

Kano Kaduna - Not yet
Kaduna Abuja - Completed
Abuja Ibadan - Not yet
Ibadan Lagos - On going

The initial plan was to start both the Ibadan Lagos and the Kaduna Kano at same time but that was not done.

So now it's the turn of Kaduna Kano but they want to go for Ibadan Abuja instead. Why?

They are using the word Ibadan Kano as a deception to look like it involves Kano but it's pure lie. You cannot say Ibadan Kano when we already have Kaduna rail in between.

Whats left now is Ibadan - Abuja and Kaduna - Kano.

This is not a separate railway but still that of Lagos Kano

It refer to the rest lagos Kano standard guage project. The minister stated same thing you did in a concise manner. He wouldn't have stated he didnt want to fund projects in segmets then. Are you saying the loan won't cover Kano?

Ibadan - Abuja and Kaduna - Kano = Ibadan to Kano. (Unless you him to say every segment everytime.

“But there are those who argue that we should not accept that, rather we should tell them to fund it in segments. This, however, does not make economic sense.”

Fariq:


Whats left now is Ibadan - Abuja and Kaduna - Kano.

This is not a separate railway but still that of Lagos Kano

Fariq:


Which one is Ibadan Kano rail?

We have Lagos Kano railway which is divided in to 4 segments.

Kano Kaduna - Not yet
Kaduna Abuja - Completed
Abuja Ibadan - Not yet
Ibadan Lagos - On going

The initial plan was to start both the Ibadan Lagos and the Kaduna Kano at same time but that was not done.

So now it's the turn of Kaduna Kano but they want to go for Ibadan Abuja instead. Why?

They are using the word Ibadan Kano as a deception to look like it involves Kano but it's pure lie. You cannot say Ibadan Kano when we already have Kaduna rail in between.

Whats left now is Ibadan - Abuja and Kaduna - Kano.

This is not a separate railway but still that of Lagos Kano

look at the way this aboki is talking, as if the money to pay back the debt can be made from kano or Kaduna.
Trash

Omololu001:
look at the way this aboki is talking, as if the money to pay back the debt can be made from kano or Kaduna.
Trash

Shut up Afonja with your ewedu teeth. The project will pay for itself from the money obtained from the project over years. That of Kaduna Abuja is already paying for itself.

Blue3k:
It refer to the rest lagos Kano standard guage project. The minister stated same thing you did in a concise manner. He wouldn't have stated he didnt want to fund projects in segmets then. Are you saying the loan won't cover Kano?

Ibadan - Abuja and Kaduna - Kano = Ibadan to Kano. (Unless you him to say every segment everytime.

What I am saying priority should be given to Kano Kaduna instead of Ibadan Abuja.

From all this rant it's clear at the end of the day the segment of Abuja Ibadan will be the first to start and only God knows when that of Kano Kaduna will begin.

Fariq:


Shut up Afonja with your ewedu teeth. The project will pay for itself from the money obtained from the project over years. That of Kaduna Abuja is already paying for itself. Each

setup!d aboki cow,I can't start exchanging words with a goro chewing parasite

Omololu001:
setup!d aboki cow,I can't start exchanging words with a goro chewing parasite

But who are you if I am cow. You're inferior to cow. Maybe a sophisticated pig. You are cow slave because you're slave to Almajiri. Go and take ur bath and make sure u brush ur ewedu infested smelling teeth. So that it can at least look milk color, because I Kno it will never look white like this

Fariq:


But who are you if I am cow. You're inferior to cow. Maybe a sophisticated pig. You are cow slave because you're slave to Almajiri. Go and take ur bath and make sure u brush ur ewedu infested smelling teeth. So that it can at least look milk color, because I Kno it will never look white like this

mtcheww

I don't even understand the trash you wrote.

Omololu001:
mtcheww

I don't even understand the trash you wrote.

How can you understand when your brain is filled with sand.

Omololu001:
look at the way this aboki is talking, as if the money to pay back the debt can be made from kano or Kaduna.
Trash

the main question should be if the Niger delta start bombing again, will the federal government will be able to pay back this loans,pay salary,fund capital project and also fund the war against boko haram,armed bandit,Fulani heardsmen and the Niger delta militant

Lies and propaganda did not stop PDP from loosing elections in 2015 neither would it help them win elections in 2019

Bump

Hope everyone is seeing where d money borrowed is going


Because when they start paying for d debt only them will pay it with their sweat

Fariq:


Which one is Ibadan Kano rail?

We have Lagos Kano railway which is divided in to 4 segments.

Kano Kaduna - Not yet
Kaduna Abuja - Completed
Abuja Ibadan - Not yet
Ibadan Lagos - On going

The initial plan was to start both the Ibadan Lagos and the Kaduna Kano at same time but that was not done.

So now it's the turn of Kaduna Kano but they want to go for Ibadan Abuja instead. Why?

They are using the word Ibadan Kano as a deception to look like it involves Kano but it's pure lie. You cannot say Ibadan Kano when we already have Kaduna rail in between.

Whats left now is Ibadan - Abuja and Kaduna - Kano.

This is not a separate railway but still that of Lagos Kano

go school you no gree, common comprehension you no fit,

Omololu001:
mtcheww

I don't even understand the trash you wrote.

Pls don’t fall for that nonentity fraud. He is 100% Igbo, one of the miscreants from a baby factory, pretending to be a northerner.

Blue3k:


Source: https://www.vanguardngr.com/2018/09/debt-owed-china-only-8-5-of-external-debt-dmo/am
Front page: Lalasticlala

Frankly speaking I feel the money is a waste

The government philosophy seems that if advanced nations have trains therefore by fire by force we too must have trains to develop

This argument is similar to that of a steel plant

The railways should not be a priority now but instead getting all the federal roads in tip top condition and ensuring 24hour power supply

If the country borrowed for the above it will be money well spent?

yomi96:

go school you no gree, common comprehension you no fit,

When mtn dash pig 10mb you will easily realize by their post.

Fariq:


When mtn dash pig 10mb you will easily realize by their post.

weak come back
go school you no gree go. you go come dey disgrace yourself online.I am sure you are one of the zombies that climbed tree to have a glance at Mr incompetence in kano,you 've come here to defend him. well jamb form will be out soon,

yomi96:

weak come back
go school you no gree go. you go come dey disgrace yourself online.I am sure you are one of the zombies that climbed tree to have a glance at Mr incompetence in kano,you 've come here to defend him. well jamb form will be out soon,

Samething I stated above. These are the type of post when mtn dash pig 10mb.

grandstar:


Frankly speaking I feel the money is a waste

The government philosophy seems that if advanced nations have trains therefore by fire by force we too must have trains to develop

This argument is similar to that of a steel plant

The railways should not be a priority now but instead getting all the federal roads in tip top condition and ensuring 24hour power supply

If the country borrowed for the above it will be money well spent?

The idea of prioritizing the railways isn't in itself a bad one, as the fact is that well-run railways can carry a lot more freight traffic with a lot more regularity than roads, especially roads of Nigeria's poorly-built and poorly-maintained kind; in addition, the more goods are moved by rail, the less wear and tear those roads will experience, the less frequently there will be accidents between trucks hauling goods and ordinary commuters, and the less likely traffic on the roads will be brought to a crawl (and I haven't even mentioned the environmental cost of all those trucks spewing emissions everywhere). The real problem with the way the FG is going about things is that there doesn't seem to be any great thought being given to the cost at which these lines are being built out, or to the commercial requirements for the railways to be financially self-sustaining.

Regarding the cost issue, many recent articles I've seen in The Economist and the Financial Times have indicated that China's foreign infrastructure projects have been done at highly-inflated costs, sometimes up to 6 times what the going rate ought to be; this seems to have been the case with the new railways built in Kenya, as well as with several projects in Pakistan and Malaysia (where Mahathir has just very publicly cancelled at least 3 multi-billion dollar Chinese contracts). I see no reason to expect Nigeria to have fared better in this regard than any other country, especially given the rampant incompetence and corruption at all levels of Nigerian decision-making.

As for the commercial basis upon which these railways are to be run, it's already glaringly obvious from the Kaduna-Abuja stretch that the FG won't be willing to allow concession operators to charge passengers enough to recover their running costs, while the very idea of prioritizing passenger over freight traffic is itself nonsensical. Indeed, if the Nigerian railway system were being planned out by a cost-conscious administrator, the Lagos-Ibadan stretch would have been by far the highest priority, with a terminal running directly from the ports at Apapa; the next-highest priority would have been the Ibadan-Ilorin portion, and after that Ilorin-Kano, etc. Unfortunately, as always petty tribal considerations have been prioritized over economic rationality, so the top priority was a Kaduna-Abuja stretch that will never recover the costs associated with running it, let alone the costs of building it out.

TLDR: Railways are an excellent idea in principle (and in practice in sane countries like Japan, the USA, France, Germany, etc), but the inevitable Nigerian factor has turned the Buhari administration's implementation into nothing more than a liability for future generations. If any of these new railway lines are still at their full initial capacity after a mere 10 years, I will be highly surprised. The far more likely scenario is that they will be quickly run down, just like the well-functioning railway system we inherited at independence.

Fariq:


How can you understand when your brain is filled with sand.

k