The federal government says the Ibadan to Kano railway project is being held back by the failure of the Chinese government to issue a five point three billion dollar loan to Nigeria.
Transportation minister, Rotimi Amaechi made the point in Abuja and said the federal government had approved the contract for the project.
The minister’s media aide, Taiye Edeni, said in a statement the country is waiting for the Chinese government and the bank to approve the multi-billion dollar loan to construct the railway line.
The minister said, a year after Nigeria applied for the loan, the money is still has not come in. He said the project cannot begin without the loan being issued.
Once built, the rail line is expected to facilitate movement of cargoes that would reduce the fuel tankers that cause accidents on the highways. The minister said, for now, cargo can only be moved by train between Lagos and Ibadan. He said, once the rail lines are connected to seaports, the country would be able to move we cargoes all the way to Kano from Lagos.