Buhari Queries Ministry over Diversion $1Bn Rail Project Loan

President Muhammed Buhari has asked the Ministry of Finance to account for the foreign loans aimed at the rail projects but used for other purposes.

The amount involved was part of the loan of $1.005 billion from the Chinese Exim Bank, obtained for the construction of a standard gauge rail line linking Lagos to Kano which project was started under former President Goodluck Jonathan.

President Buhari spoke at the end of a report presentation on the Ministry of Transport by Alhaji Mohammed Bashar, permanent secretary, at the Presidential Villa, Abuja.

He said that it was disappointing to discover that foreign loans obtained in line with signed agreements were moved from one project to another, and doubted if such diversion was done following due process.

“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,” the President said.

His reaction was against the backdrop of specific instance of the diversion of a substantial part of the loan of $1.005 billion from the Chinese Exim Bank, obtained for the construction of a standard gauge rail line linking Lagos to Kano which was moved elsewhere.

The permanent secretary had disclosed to the President that only $400 million of that loan remained with the Ministry of Finance.

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

In addition, he stressed that there was a clear need to streamline, harmonize, and prioritize on-going projects in the transportation sector.

The permanent secretary had also briefed the President on other challenges facing the transport and maritime sectors, such as encroachment on railway land, lack of security on inland waterways and the confused nature of agreements between the Nigerian Ports Authority and ports concessionaires.

According to him, while speaking with State House Correspondents shortly after their briefing to the President, “Basically, what we did was to present to the President the various programmes and projects and the reform efforts we have been undertaking in the last couple of years; the stages of the various projects, especially the railway rehabilitation programme and development in our seaports.

“And also some of the regulatory issues that we sought are due for review and attention.

“The President quite appreciated a lot of what has been achieved so far and he has indicated his willingness to continue with a lot of projects and programmes already on ground.

“And he has expressed his support, especially when we start talking about the capacity building for individual operators in the country. He is really appreciative of the entrepreneur initiatives of Nigerians and indicated that government will continue to give its full support.”

On specific directive from the president to the Ministry of Transport, the permanent secretary said,“There are issues that he thinks we should pay a lot of attention, especially in the execution of agreements that we have entered into.

“He emphasized on the need to adhere strictly to the terms of agreements and we are going to abide by that.

“Basically, those agreements are relating to the projects we entered into with the construction of railway, standard gauge lines and rehabilitation programmes.”