Railway contract from Kano to Maradi expensive – Experts
Expensive Railway Contract : The Government of Nigeria has signed a Memorandum of Understanding (MoU) with Mota-Engil Group to undertake the construction of the Kano-Maradi Highway in the Republic of Niger.
The project, which the government says will be completed by 2024, will cost $ 1.959 billion.
The News Agency of Nigeria (NAN) quoted the Minister of Transport, Rotimi Amechi in a statement as saying that the project aims to connect the whole of Nigeria with the railway line.
Ambassador Yusuf Tuggar is Nigeria’s ambassador to Germany, the country where the project will be funded, and was one of the Nigerian government officials who witnessed the signing of the agreement.
He told the BBC that “there is a state-of-the-art KFW bank that will raise funds for the project, it will go from Kano to Maradi and then from Kano to Dutse in Jigawa State”.
He said the implementation of the project would create many opportunities for the country in various aspects.
Experts Warns Against Expensive Contract
According to him, “most of the loans are due to the fact that there will be no shortage of vocational training, as long as the staff is trained in the services”.
“Within 15 years the loan will be completed and the company has promised to complete the project within three years because it is a company that specializes in such work.” said Tuggar.
However, economists such as Dr. Shamsuddeen Muhammad believe that despite the huge gains made in the implementation of this project, there are disadvantages.
The allocated funds seem to be too high, as the contract is too expensive, “he said, adding that there was concern about the government’s debt burden, adding that at present Nigeria’s debt was over 10 per cent of the total. the economy of the country.
The government announced its decision in September, but the issue has raised eyebrows.
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