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Nigerian Government Repays $150m Out Of $2bn Chinese Loan

Nigerian Government Repays $150m Out Of $2bn Chinese Loan

The honorable Minister of Transportation; Rotimi Amaechi, on Wednesday, said the Federal Government has repaid up to $150m out of the $2bn Chinese loan borrowed for rail construction.

This was revealed during Channels Television’s ‘Politics Today’ program monitored by The PUNCH.

The regime of the President, Major General Muhammadu Buhari (retd.), has been heavily criticized for borrowing billions of dollars from the Chinese government.

Amaechi who spoke while he was featured in the program said the President Muhammadu Buhari administration has only borrowed for the Kaduna-Abuja and the Lagos-Ibadan railways.

When asked how much of the Chinese loan obtained that the Federal Government has repaid, Amaechi said, “The right ministry to respond to that question is the Ministry of Finance; they borrow and they repay but I think the last I heard about it, it was between a $100m to $150m repayments that we have done so far in the Kaduna-Abuja.

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“Don’t forget that we’ve not borrowed any money yet, the only money we borrowed is in the Kaduna-Abuja and Lagos-Ibadan. Lagos-Ibadan, what we borrowed is about $1.5bn though it has not matured for repayment, what has matured for repayment is the Kaduna-Abuja which is being repaid.

“Nigerians think we borrow so much but the only projects we have borrowed so far is the Kaduna-Abuja where we borrowed $500m and the Lagos-Ibadan where we borrowed $1.5bn. So, that brings the total loan exposure for us in the Ministry of Transport to about $2bn as far as the railway is concerned.”

The minister also said the Chinese are still in charge of the rail services on the Abuja-Kaduna and Lagos-Ibadan lines. According to him, the Chinese drive the trains and will hand them over to Nigerians once major areas of operations are ticked.

Source: Punch

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