Despite the humongous debt, the Federal Government has yet again hinted that it will borrow billions of dollars from both Europe and Asia to complete the ongoing rail projects across the country.
Investors King learnt that the Federal Government intends to access credit facilities from financial institutions based in China, Turkey, and Portugal.
Already, the Nigeria Government which comprises the federal government, all 36 States, and the federal capital territory (FCT) has a public stock debt of $103.3 billion, representing 42.8 trillion in naira.
Some of these debts are owed to international financial institutions such as the World Bank, the International Monetary Fund (IMF), AfreximBank, African Development Bank (AfDB), and bilateral lenders, such as Germany, China, Japan, India, and France.
The growing pile of Nigerian debt has been a major concern for many experts who express worry and enumerate the danger it portrays for the country.
They advised government at all levels in Nigeria to increase revenue generation, block loopholes, and cut government spending.
According to the Minister of Transportation, Mu’azu Jaji Sambo, the Federal Government will fairly monetise the rail projects across the country to bring some sort of revenue to the government.
While speaking to a joint committee of the National Assembly, Mu’azu noted that several rail projects are currently ongoing across the country. Some of these include Kaduna-Kano, Port Harcourt to Maiduguri, and Kano – Maradi.
He however admitted that it is getting difficult for the Federal Government to get counterpart funding through loans.
The minister further disclosed that the Lagos to Ibadan and Warri to Itakpe sections of the train service are adequately receiving public patronage.
He added that the Abuja to Kaduna train service will also resume operations soon after necessary security precautions have been taken.
It would be recalled that terrorists attacked Abuja to Kaduna train in March which led to the death of no less than eight people while scores were kidnapped. The last batch of those abducted were released in early October after eight months in captivity.
