The Federal Government’s decision to declare free passenger rides from December 24, 2021 to January 4, 2022, is expected to gulp N130.8m, The PUNCH reports.
The Spokesman for the Nigeria Railway Corporation, Yakub Mahmood, said passenger trains on both standard and narrow gauge lines, which include Abuja to Kaduna, Lagos to Ibadan, Warri to Itakpe, Kano to Lagos, Minna to Kaduna, Aba to Port Harcourt routes are now all free for 12 days.
The NRC had revealed in July that the corporation generates an average of N327m every month from its different routes, approximately N10.9m per day.
With 12 days declared free for all passengers, this implies that the programme would gulp N130.8m.
The Managing Director, NRC, Fred Okhiria, had explained that with the introduction of an additional Diesel Multiple Unit, the corporation had increased the number of train trips between Abuja and Kaduna from eight to 10 per day just as the trips on that route had been increased from four to six for Wednesdays.
The Federal Government had sought loan facilities from Chinese lenders to implement several infrastructural projects, including standard gauge rail lines.
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The Minister of Transportation, Rotimi Amaechi had said the administration of President Goodluck Jonathan obtained $500m from China for the Abuja-Kaduna rail but added that about $150m had been repaid. He further noted that a loan of $1.5bn was taken for the Ibadan-Kano railway.
Under the regime of President Goodluck Jonathan, the loan for Abuja-Kaduna (rail line) was taken at about $500 million. As we are talking today, we have paid about $150m on that loan, and Nigeria has never defaulted when it comes to loan repayment. I don’t also expect that we would default on any other loans that we have taken.
The loan for Ibadan-Kano (rail line) is about $1.5bn, the remaining $500m came from our budget. I expect that whatever loan we take, we will be able to repay,” he had said.
Amaechi added that there is no clause in the loan agreement that cedes assets of the federal government to China in the case of repayment default.
“I am not aware of whatever clause in the loan agreement that hands over any of our national assets to China.
According to the Debt Management Office, the total borrowing by Nigeria from China stood at $3.12bn as of March 31, 2020, most of which was spent on the railway.
