The Federal Government has said it is yet to secure the 85 per cent foreign loan for the Kaduna-Kano and Port Harcourt-Maiduguri rail projects.
The government also said it had completely disbursed to the contractor handling the Kaduna-Kano rail line the 15 per cent fund as obligated by it.
It stressed that until the loan is secured, the two projects may have to be funded through the budget.
Transportation Minister Mu’azu Sambo said these at the weekend in Abuja.
Last month, the minister explained that work on 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.
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According to him, the Transportation University in Daura, Katsina State, which ought to have started academic activities, faced administrative challenges.
Giving updates on some of the projects under his ministry, Sambo said: “The Kaduna-Kano, Port Harcourt-Maiduguri rail projects are ongoing. The challenge we have with these two projects is that we are yet to secure the 85 per cent foreign loan component for the two contracts.
“We have been driving these two projects solely through appropriation, which is the 15 per cent that Nigeria is supposed to contribute.
“Indeed, I can tell you for sure that concerning the Kaduna-Kano rail, we have paid completely to the contractor the 15 per cent obligation of the Federal Government.
“Until we have the 85 per cent components, the projects will have to be funded through appropriation.”