About a week after the Federal Government announced the release of N72 billion as its counterpart fund for the construction of the Lagos-Ibadan standard gauge rail line, the Export-Import Bank of China has approved $1.275 billion about N408 billion loan for the project on behalf of the Chinese government.
While Nigeria is to bear 15 per cent of the cost of the project, China will shoulder 85 per cent for the first phase fast rail that will eventually terminate in Kano. The Managing Director, Nigerian Railway Corporation, Mr. Fidet Okheria, said on Sunday that with the approval of the funds by the Chinese Exim bank, all was set for the commencement of the construction of the modern rail line from Lagos to Ibadan.
“The Exim bank of China has now approved the loan and the next stage is for the Minister of Finance to sign it to signal the beginning of the project,” he said.
