The federal government through the Ministry of Transportation, has secured the sum of $1.3 billion for Completion of Kano-Katsina-Jibiya-Maradi rail project.
The Minister of Transportation, Senator Said Alkali, while announcing the major milestone in the financing of the project Tuesday in Abuja, noted that the China Civil Engineering Construction Company (CCECC) would provide 85 per cent of the money while the federal government provides 15 per cent.
The minister in a statement made issued by his Special Assistant on Public Affairs, to the Minister, Jamilu Ja’afaru said the move signified a monumental step forward in the completion of the critical infrastructure, which is poised to strengthen the socioeconomic ties between Nigeria and the Niger Republic.
He the recent visit by Mr. Tang Zhigang, Chairman of the Supervisory Board of the China Export and Credit Insurance Corporation, and his delegation, has further bolstered optimism for the rail project’s potential to lay the groundwork for future prosperity between the two nations.
Alkali noted: “It’s EPC+F Model. Engineering, Procurement, Construction and Financing (EPC- F contract). This rail link, a key component of President Tinubu’s Renewed Hope Agenda, is set to enhance regional trade, community development, and cultural exchange, aligning with the administration’s unwavering commitment to national development and a more interconnected African continent.”
“The Kano-Katsina-Jibiya-Maradi rail line is a testament to our shared history and ambition for economic advancement. It will create a lasting legacy of wealth and opportunities for Nigeria and the Niger Republic,” said Senator Said Ahmed Alkali.
“As the project advances, the Nigerian Government remains dedicated to realizing a vision of progress and unity. The Ministry of Transportation will continue to provide updates on this transformative venture, marking each achievement as we journey towards a brighter and more connected future,”Alkali said.
Speaking at the interactive section, the Senior Vice President, Africa Finance Corporation, Mohammed Abdul-Razaq disclosed that the consortium of banks consisting of the Africa Development Bank, Africa Export-Import Bank (AFREXIM), Development Bank of Southern Africa, African Finance Bank, Rand Merchant Bank and the China Construction Bank have indicated interest in providing the funds that will facilitate completion of the project within the proposed timeline.
He explained that the team as part of the due diligence process, has embarked on a series of interactive engagements with the Ministers of Finance, Environment, Mines and Steel Development and only just came back to Abuja after visitation to the site locations of the project to corroborate received reports.
Abdul-Razaq added: “For them to be able to provide funds, they need to do due diligence and at the end of the mission, return to their respective offices, write credit reports and seek approvals.”
Also, the Managing Director of the Nigerian Railway Corporation, Mr. Fidet Okhiria, and a senior director with the African Development Bank (AfDB), Muhammad Abdulrazak have both endorsed the project as a catalyst for positive change, fostering economic growth and regional cooperation.