Nigeria’s FCT To Get New Railway As China’s Exim Bank Grants $600m Loan

Nigeria’s Federal Capital Territory,  Abuja and its surrounding areas will soon be benefiting from a new railway system, thanks to a loan agreement signed between the Nigerian government and the Chinese Export-Import bank (Exim), the ccountry’s Finance Ministry announced yesterday.  The amount of the loan is to be $600 million; terms agreed at 2.5 percent over a 20 year period with a seven year grace period.

Traffic congestion and the current dangerous state of roads in Nigeria, particularly in the capital Abuja, have caused much complaint and criticism in the oil-rich West African country.  The poor road infrastructure is also a hindrance to traders and producers, as much it is a peril to local citizens.

$500 million of the agreed loan amount is expected to be spent on the construction of the new railway; which is to be carried out by the Chinese state-owned China Civil Engineering Construction Corp.  While the project was supposed to be completed by 2015.The remaining $100 million of the loan money will go towards Nigeria’s Galaxy Backbone project.  The Galaxy Backbone project is an initiative of the Federal Government, which aims to promote digital access and inclusion throughout the territory of Nigeria and beyond.

Nigerian Ventures

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