The Federal Government said it is yet to secure the 85 percent foreign loan for the Kaduna-Kano and Port Harcourt-Maiduguri rail projects.
It also said it has completely disbursed to the contractor handling the Kaduna-Kano rail line the 15 percent fund as obligated by it.
The Federal Government said until the loan is secured, the two projects may have to be funded through the budget.
These were disclosed by the Minister of Transportation, Mu’azu Sambo in Abuja at the weekend.
Last month, the Minister explained that work along the eastern corridor was suspended due to insecurity and vandalisation of rail infrastructure.
He said the contractor handling the project, China Civil Engineering and Construction Company (CCECC), complained of attacks on its workers along the Abia State axis.
The Minister also revealed that the Transport university in Daura, Katsina State which ought to have commenced academic activities faced administrative challenges.
Giving updates on some of the projects supervised by the ministry, Sambo said: “The Kaduna-Kano, Port Harcourt -Maiduguri rail projects, they are ongoing. The challenge we have with these two projects is that we are yet to secure the 85% foreign loan component of the two contracts.
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“We have been driving these two projects solely through appropriation which is the 15 percent that Nigeria is supposed to contribute.
“Indeed, I can tell you for sure that concerning the Kaduna-Kano rail, we have paid completely to thr contractor, the 15 percent obligation of the federal government.
“Until we have the 85 percent components, the projects will have to be funded through appropriation.”
On the transport university, he said: “The transportation university in Daura ought to have commenced academic sessions since September but there are certain challenges that we faced just like every other aspect of human endeavour and some of these challenges are administrative.
“We are trying to clear with the National University Commission and the Federal Ministry of Education.”