The Federal Government has paid back $150 out of the $500 million loan obtained from China to build the Abuja- Kaduna railway, Minister of Transportation, Rotimi Amaechi, has said.
Th loan was obtained by the administration of President Goodluck Jonathan.
The minister disclosed this during an interview with Arise TV on Monday.
“What I am aware of is the fact that when you take the loan, you are expected to pay back, and as I am talking today, we are paying back,” he said.
“Under the regime of President Goodluck Jonathan, the loan for Abuja-Kaduna (rail line) was taken at about $500 million. As we are talking today, we have paid about $150 million on that loan, and Nigeria has never defaulted when it comes to loan repayment. I don’t also expect that we would default in any other loans that we have taken.
“The loan for Ibadan-Kano (rail line) is about $1.5 billion, the remaining $500 million came from our budget. I expect that whatever loan we take, we will be able to repay.
The minister there is no clause in the loan agreement that cedes assets of the federal government to China in the case of repayment default.
“I am not aware of whatever clause in the loan agreement that hands over any of our national assets to China.
“When you default, they may go to court and it depends on the outcome of the court case but I am not aware that there is any clause signed by this government or the previous government of President Goodluck Jonathan that mortgaged any of our national assets.”