The Federal Government has met with a consortium of financial institutions, who expressed interest in providing the government with the funds for the completion of the 284+103km Kano/Maradi rail project.
Receiving representatives of the Take-Out facilities lenders for the Kano/Katsina/Jibiya/Maradi (Niger Republic) Single Track Standard Gauge Railway project in Abuja, the Minister of Transportation, Saidu Alkali, said the project “represents Federal Government’s aspirations” to facilitate trade and engender alternative mode of transportation and foster bilateral relations between the two countries.
The minister noted the government’s full commitment to the completion of the rail project, to boost the economy of Nigeria and Niger.
He, therefore, assured the team that all the necessary documents and answers that could convince prospective financiers to release their funds for the project would be provided by his management team, comprising the Permanent Secretary; Director, Rail Transport Services; Director, Legal Services and the Managing Director, Nigeria Railway Corporation (NRC), among others.
Alkali assured the investors of a promising Return on Investment, as well as a guaranteed, secure environment in partnership with the transportation sector in the country.
The meeting, which was at the instance of the consortium of banks, was to enable the financial institutions to get answers to their puzzles and inquiries, as part of the due diligence process.
Senior Vice President, Africa Finance Corporation (AFC), Mohammed Abdul-Razaq, disclosed that the consortium of banks consisting of Africa Development Bank (AfDB), Africa Export-Import Bank (AFREXIM), Development Bank of Southern Africa (DBSA), Rand Merchant Bank (RMB) and China Construction Bank (CCB) indicated interest in providing the funds that will facilitate completion of the project within the proposed timeline.
According to Abdul-Razaq, the team, as part of the due diligence process, has embarked on a series of interactive engagements with the Ministers of Finance, Environment, Mines and Steel Development, and only just came back to Abuja after visitation to the locations of the project to corroborate received reports.
He added: “For them to be able to provide funds, they need to do due diligence, and at the end, return to their respective offices, write credit reports and seek approvals.”
As regards the readiness of Nigeria to provide security along the rail corridors, the Managing Director of NRC, Fidet Okhiria, said the Federal Government would install a digital security system on the Kano/Maradi rail corridor.
According to him, the security system, when established along the rail tracks, will enable security personnel to identify and respond when there is an impact on the rail line.
