The Nigerian government is currently negotiating a fresh $14.4 billion loan which is about N5.9 trillion to finance two rail lines in the country.
Minister of Transportation, Rotimi Amaechi disclosed this in an interview with Bloomberg.
According to the minister, Standard Chartered Plc, a British multinational bank will be funding the project despite previously announcing the state-owned Export-Import Bank of China.
The two rail projects include the upgrade of eastern line that links Port Harcourt with Maiduguri and the extension of the Lagos-Ibadan rail line to Kano.
He also added that Zainab Ahmed, minister of finance, budget and national planning, is “overseeing the talks with the emerging markets-focused financial institution about arranging the infrastructure loans.”
It is believed Nigeria’s decision not to borrow from China was made in order to limit the country’s vulnerability to China.
The Federal Government had been embarking on several rail line projects across the country in collaboration with China Civil Engineering Construction Corporation Chinese financed by stated owned Eximbank bank.
