Now Reading
Railway debt service consumes N246 billion, while NRC revenue declines

Railway debt service consumes N246 billion, while NRC revenue declines

According to the Debt Management Office’s reports on Nigeria’s external debt service payments, the Federal Government spent $548.67 million (or N246.11 billion using the Central Bank of Nigeria’s official exchange rate of N448.55 to a dollar) to pay off debts related to railways between 2016 and 2022.

$11.37 million went to the Nigerian Railway Modernization Project and $8.26 million went to the Nigeria Abuja Light Rail Project between January and December 2016, respectively.

By 2017, $21.53 million was spent on repaying the debt on railways, with $12.14 million going to the Nigerian Railway Modernization Project and $9.39 million to the Nigerian Abuja Light Rail Project.

The entire amount spent on repaying railway debt increased in 2018, totaling $63.92 million from January to December.

The Nigerian Abuja Light Rail Project cost $10.92 million, the Nigerian Railway Modernization Project (Idu-Kaduna Section) $50.81 million, and the Nigerian Railway Modernization Project (Lagos-Ibadan Section) $2.82 million.

In 2019, the federal government spent $74.25 million to pay off debts relating to railroads.

Nigeria’s Idu-Kaduna Railway Modernization Project consumed $49.91 million, the Lagos-Ibadan Railway Modernization Project consumed $12.68 million, and the Abuja Light Rail Project consumed $11.66 million.

The expense of paying off the railway loans increased the next year, costing Nigeria $121 million.

The Nigerian Abuja Light Rail Project cost $50.75 million, the Nigerian Railway Modernization Project (Idu-Kaduna Section) $48.97 million, and the Nigerian Railway Modernization Project (Lagos-Ibadan Section) $21.28 million.

The total amount paid on repaying railway debt increased to $122.92m by 2021.

The Nigerian Abuja Light Rail Project cost $50.88 million, the Nigerian Railway Modernization Project (Idu-Kaduna Section) $47.96 million, and the Nigerian Railway Modernization Project (Lagos-Ibadan Section) $24.08 million.

Total expenditures for servicing railway debts in the first quarter of 2022 came to $61.73 million, of which $23.58 million went to the Nigeria Railway Modernization Project (Idu-Kaduna Section), $13.60 million to the Nigeria Railway Modernization Project (Lagos-Ibadan Section), and $24.55 million to the Nigeria Abuja Light Rail Project.

See Also

However, no Chinese debt was paid off by the second quarter of 2022.

By the third quarter of 2022, a total of $63.33 million had been spent on paying off railway debts, of which $23.41 million had gone toward the Nigerian Railway Modernization Project (Idu-Kaduna Section), $14.95 million had gone toward the Nigerian Railway Modernization Project (Lagos-Ibadan Section), and $24.39 million had gone toward the Nigerian Abuja Light Rail Project.

The purchase of rolling stock and depot equipment from Nigeria for the Abuja light rail project cost $580,889, it was revealed.

In total, the Federal Government spent $125.06 million in 2022 to pay off railway debt.

As the government tried to make money from the railroad industry, the cost of servicing the government’s debt on the railways increased.

What's Your Reaction?
Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0
View Comments (0)

Leave a Reply

Your email address will not be published.

Scroll To Top