N420.46m generated from Abuja-Kaduna rail, saved in Escrow account - Amaechi

The Minister of Transportation, Mr. Rotimi Amaechi yesterday in Abuja, hinted that the federal government had so far paid N420.46m into the escrow account from revenue generated from the Abuja-Kaduna train services over the period of the ERGP (Economic Recovery and Growth Plan 2017-2020.

He noted that with the introduction of the online ticketing system on the Abuja-Kaduna train service, the Nigeria Railway Corporation (NRC) had been able to raise its earnings by about N50 million after deducting its operational cost.

Amaechi disclosed this while speaking in Abuja at the annual ministerial briefing on programmes, projects and activities of the Federal Ministry of Transportation and its agencies.

Ameachi, during his valedictory press briefing two years ago instructed the Nigerian Railway Corporation (NRC) managing director to create a sinking fund or escrow account that could be used to pay back the loan, saying it was important that the ministry begin repayment even before the federal government starts.

He observed then that the Chinese wanted them to put repayment fund in the sinking fund account annually while the money of the management of the operation should be put in the escrow account.

The minister while further highlighting the ministry’s achievements disclosed that work would soon begin on some selected rail projects for which contracts had been awarded.

He listed some of the rail projects to include the Ibadan-Kano, Port Harcourt Maiduguri, Kano-Maradi and Lagos-Calabar rail lines.

He explained that government had solved the financial problems associated with the rail projects, stating: “We have awarded the following contracts and we are about to start and we have even tried to solve the financial problems. This is because we have the problem of having to hire consulting engineers.”

According to him, “The ones we are about to start are Ibadan to Kano, that we are waiting for funds from China. We are about to start Port Harcourt to Maiduguri, we are waiting for the cabinet to approve consulting shares. We are also to start the Kano-Maradi and Lagos to Calabar.”

He added that, “but one thing that is unique about these contracts is that the President early enough directed that all rail lines must stagnate at the sea ports.

“That is why there may be a bit of adjustment in the pricing of Kano-Maradi because we have to adjust it to link up to Kano-Lagos so that it can terminate at Lagos seaport.”

He further revealed that the 185.5km Lagos-Ibadan double standard gauge line with extension to Apapa seaport was nearing completion while the 186km Abuja-Kaduna and 302km Warri-Itakpe standard guage lines had been completed and were functional.

The minister however frowned at the ticket racketeering perpetuated by some employees of the Nigeria Railway Corporation and directed the management of the NRC to deal decisively with anyone found culpable.

Amaechi was joined at the briefing by Minister of Information and Culture, Lai Mohammed and Minister of State for Transportation, Gbemisola Saraki.