AfDB’s $350 Million Rail Funding to Have No Impact on NRC Unbundling

Rail transport expert Olawale Rasheed has stated that the recent announcement by the African Development Bank (AfDB) to provide $350 million to the Federal Government for the construction of the Kano-Maradi rail link will not impact the ongoing unbundling process of the Nigeria Railway Corporation (NRC).In an interview with The PUNCH on Tuesday, Rasheed praised the AfDB for its intervention, clarifying that the funds will not be disbursed to the NRC but will instead be allocated to the Federal Government through the Ministry of Transportation.

  • Rail transport expert Olawale Rasheed emphasized that the African Development Bank’s (AfDB) $350 million funding for the Kano-Maradi rail link will not affect the ongoing unbundling of the Nigeria Railway Corporation (NRC).
  • Rasheed explained that the Federal Ministry of Transportation manages critical rail sector projects, with oversight from a director of rail services.
  • He clarified that the funds will not be allocated to the NRC but will be administered through the ministry, adhering to federal financial management processes.
  • The regulatory structure in place will ensure transparent application of the AfDB loan, supported by the bank’s strict monitoring mechanisms.
  • Rasheed reiterated that the funding is unrelated to the NRC’s unbundling plans, as the ministry serves as the coordinating point for project implementation, with NRC not playing a direct role.
  • The announcement of the AfDB’s funding was made by Senator Adamu Aliero, Chairman of the Senate Committee on Land Transport.
  • The funding announcement follows President Bola Tinubu’s recent visit to China, where negotiations were finalized to secure 85% of the necessary funding for railway modernization and rehabilitation.
  • Rail transport expert Olawale Rasheed described the AfDB’s intervention as a significant movement for the Nigerian railway sector.
  • Rasheed highlighted the importance of the Kano-Maradi rail link to Nigeria’s geopolitical interests in the greater Sahel region.
  • He noted that the AfDB’s support will enhance the implementation of the trans-regional rail project.
  • The intervention aims to expedite the completion process and reinforce Kano’s status as the commercial capital of the historic Sahelo-Sudanese trade route.
  • Rasheed stated, “This funding is a welcome development, marking the most significant point of intervention in the Nigerian railway sector by the African Development Bank,” commending the bank for its support of the Kano-Maradi rail linkage after funding several rail projects in other parts of Africa.

The recent visit of President Bola Tinubu to China was pivotal in securing 85 percent of the funding necessary for railway modernization and rehabilitation, as noted by the lawmaker.

  • An industry expert described the African Development Bank’s (AfDB) intervention as a significant movement that will enhance the implementation of the Kano-Maradi rail link.
  • The rail transport expert highlighted that this link is crucial for Nigeria’s geopolitical interests in the greater Sahel region.
  • Rasheed emphasized that the AfDB’s support aims to expedite the completion of the trans-regional rail project and reaffirm Kano’s position as the commercial capital of the historic Sahelo-Sudanese trade route.
  • He remarked, “This funding is a welcome development, marking the most significant point of intervention in the Nigerian railway sector by the AfDB, which has successfully funded several rail projects across Africa.”

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