A Nigerian train service on the old guage

President Muhammed Buhari has asked the Federal Ministry of Finance to explain why foreign loans obtained for rail project were not used for the purpose.

The President demanded for the explanation at the end of a presentation on the Ministry of Transport by the Permanent Secretary, Alhaji Mohammed Bashar at the Presidential Villa, Abuja, on Monday.

Buhari said it was disappointing to find that foreign loans obtained in line with signed agreements were moved from one project to another.

Buhari noted the diversion of a substantial part of one billion dollars from the Chinese Exim Bank, obtained for the construction of a standard gauge rail line linking Lagos with Kano.

“I hope that due process was followed before such diversions were carried out. Taking money from one project to another has to be done properly,’’ Buhari said.

The President held that government had, over the years, failed to meet its counterpart funding obligation on some projects, leaving such projects uncompleted or abandoned.

He added that there was a clear need to streamline, harmonise, and prioritise on-going projects in the transportation sector.

The permanent secretary had informed the President that only 400million dollars of that loan remained with the ministry of finance.

The permanent secretary also told the President about the encroachment on railway land, lack of security on inland waterways and the “confused nature’’ of agreements between Nigeria Ports Authority and ports concessionaires.

Meanwhile, Bashar told newsmen that the ministry would complete the standard gauge rail line of the Nigeria Railway Corporation (NRC) before the December deadline.

He said that train services had been running on the old gauge rail lines from Lagos to Kano twice a week and from Kano to Port Harcourt and back to Gombe.

“First, I think the rehabilitation programme of the old gauge lines: as you are all aware we have completed Lagos – Kano, and it is operational; twice a week people move from Lagos to Kano and back to Lagos. We have also recently commenced the operations from Kano to Port Harcourt and Port Harcourt to Gombe. As you are aware, we have some challenges there (Gombe).

“With regard to Abuja – Kaduna in particular, the track has been completely laid. We are now waiting for the locomotives to arrive, which have been ordered and paid for.

“Our belief is that we will meet the deadline of December 2015.“

The Chairman of National Population Commission, Mr Eze Duruiheoma also led it management staff to brief Buhari on the commission’s preparedness to conduct Census 2016.