The Minister of Transport Idris Umar said on Thursday that Nigeria had secured $1 billion facility from The Export-Import Bank of China billion for a rail link. However, railway will be built by the China Civil Engineering Construction Corp., the Minister of Transport.
The loan to be given on “concessionary terms” will partly finance the planned $1.5 billion 157-kilometer (98-mile) double-carriage railway between Lagos, the commercial capital, and southwest Ibadan, Nigeria’s third-largest city, the ministry said in the statement.
“Negotiations have been concluded with the China Export-Import Bank for an initial $500 million,” Transport Minister Idris Umar was quoted as saying in the statement. “The negotiations on the balance sum of $500 million are expected to be done in due course.”
Nigeria will provide $500 million of additional funding. The Federal Government says it will increase infrastructure spending to spur business in Africa’s most populous nation of more than 160 million people.
Nigeria is reviewing laws guiding the operation of railways, ports and harbors to enable participation of private investors and reduce government’s burden in funding infrastructure, the Abuja-based Bureau of Public Enterprises, the country’s privatization agency, said on June 20.
China’s Ex-Im Bank gave $500 million in concessionary loans in 2010 for a rail link from the northern city of Kaduna to Abuja, the capital, now being constructed by CCECC for $850 million.