President Muhammadu Buhari has approved the payment of N123bn as counterpart funding to the Chinese Government for the Ibadan-Kano standard gauge project.
The Minister of Transportation, Mr. Rotimi Amaechi who stated this said work on the Ibadan-Kano segment of the Lagos-Kano line may commence by the end of August.
It would be handled by the China Civil Engineering and Construction Corporation (CCECC).
He however added that the Federal Executive Council (FEC) had approved the opening of an account where some of the profits being generated from the standard gauge train services would be secured for repayment to the Chinese government.
He said when the service first started, the government was making a monthly loss of N46m but now generates between N109m to N110m monthly profit.
Amaechi added that by the time the Ibadan-Kano train service comes on stream with cargo operations added to the service, more profit would be generated to ease the repayment of the loan.
He said: “We must attribute our successes in the rail operation to the President of the Federal Republic of Nigeria.
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