The federal government has said that it will source more loans from China and Portugal, for use in the completion of the ongoing railway project linking Kaduna-Kano, Port Harcourt to Maiduguri and Kano-Maradi.
The Minister of Transport, Muazu Sambo,who disclosed this at the 2023 budget defence of his Ministry on Thursday in Abuja,said that the completion of the projects rests on the successful negotiation of loans on infrastructural development from China, Portuguese and Turkish institutions with the Finance Minister.
He said:”To finalize and sign the loan agreements, evidence of source of funding of the balance of the advance payment and other aspects of work to be financed directly by the Federal government, has to be made available to the financial institutions through adequate budget budgetary provisions in the 2023 budget.”
He noted that the Lagos-Ibadan segment of the Lagos-Kano and Itakpa to Warri railway projects are fully operational and receiving patronage from the general public.
“To reach practical completion on these projects, some aspects of works, including construction of overpass bridges, connection to the National Grid and other ancillary provisions have to be completed.Therefore, adequate funds need to be provided in the 2023 budget to facilitate the practical completion of the projects,” he said.
On the utilization of the 2022 budget of the ministry, the Minister explained that out of the N147.5billion an estimated sum of N52.1billion representing 35.33% has been released to the ministry to date.
He added that the sum of N389billion has been utilized as at October 25, 2022.
Sambo further noted that the sum of N358,799,998 was appropriated for overhead expenditure out of which N209,299,998.81 million was released.
Speaking on the 2023 budget proposal, the Minister said that a total capital budget of N92.2billion and Overhead of N382,185,472million were proposed for 2023 appropriation Bill.
The Committee Chairman, Senator Danjuma Goje lamented that the inability of the ministry to complete the capital budget at the fiscal year and the extension of the implementation of the capital budget by three months ( January to march 2023), has negated the January to December budget circle.