The Acting President, Prof Yemi Osinbajo, has said the negotiations for the $11.117 bn loan for the Lagos-Calabar rail project from China will be finalized in June this year.
According to him, the federal government has already provided its own counterpart funding of the rail project.
The acting president, who spoke at the unveiling of Lagos-Ibadan rail project at the Nigerian Railway Corporation compound, Ebute-Metta, Lagos on Tuesday, said that ground breaking was part of the federal government’s determination to build a globally competitive economy with first grade infrastructure..
Osinbajo estimates that rail project when completed will provide no fewer than 500,000 new jobs.
The Lagos-Calabar rail project is being handled by the China Civil Engineering Construction Company (CCECC).
Apart from the jobs that will be created, the rail project will facilitate the movement of 3.2 million tonnes of cargo annually, the acting president said.
He said, “Railway, in our strategy, is underscored by our economic recovery and growth plan as well as incorporated 2016 and 2017 budgets.
“We made provision for matching funds in 2016 budget to complement the concession loans obtained from the People Republic of China. The Chinese Government and Chinese Exim Bank have always proved to be a reliable partner to the Nigeria Government. We have the entire Lagos Kano rail track as well as the Lagos Calabar railway track in the 2017 budget”
He further said that the negotiation on the Kaduna –Kano phase of the track will soon be completed, adding that this will reduce the stress and deterioration on the high ways.
The rail network will bring about a multiplier effect on the national economy as well as improve exports, he added.
“Several of our cities will become known as railway towns will boost economic activities within the railway lines that will eventually cut across the entire country,” he said.
Among those who were at the unveiling ceremony were the Lagos State Governor, Akinwunmi Ambode and the Oyo State counterpart, Senator Abiola Ajimobi, the Transport Minister, Rotimi Amaechi.
Ambode who spoke during the ceremony said that with the Lagos –Ibadan rail project, containers and other goods from the Lagos ports can now be moved through rails.
He also said that this will check the gridlock on the Lagos roads.
The Lagos-Calabar rail project is being handled by the China Civil Engineering Construction Company (CCECC).
The first phase of the project covers Calabar, Uyo, Aba and Port Harcourt while other segment, Lagos Calabar rail line will cover Otueke, Yenagoa, Ughelli, Warri, Sapele, Benin, Agbor, Asaba, Onitsha, Ijebu Ode and Lagos.
The project is expected to be ready in two years.
