Featured

The Benefits Of China Transport Infrastructure Dev’t Loan To Nigeria

Published

5 years ago

August 7, 2020

News analysis by Taiye Elebiyo-Edeni, (NAN)

Nigerian transportation industry which comprises aviation, land (road and rail), and maritime subsectors have faced challenges of infrastructure deficit since independence and successive administrations have taken steps to address these challenges. Since assuming office on May 29, 2015, President Muhammadu Buhari has taken giant strides to address these challenges across the transport sectors ranging from airport to rail.

The desire to address such challenges and boost economic activities in the country led to the negotiations between the government of China and Nigeria on getting funds to address the immediate transport challenges as well as to create thousands of direct and indirect jobs.

The first step taken by the Minister of Transportation, Rotimi Amaechi, was to complete the abandoned 276 km Itakpe-Warri rail line linking Warri in Delta State to Ajaokuta, in Kogi State for transporting steel products and raw materials from the Delta Steel Company, Aladja which is now completed after it was abandoned for 35 years. So far 13 coaches and four locomotives have been deployed to the route for the commencement of commercial activities.

The other project completed was the Abuja-Kaduna Modernisation rail line which was funded with the $500m China loan collected by the former President Goodluck Jonathan administration in 2010 for infrastructural development in the country.

However, with the coming on board of Amaechi, the 187 km Abuja-Kaduna standard gauge line was completed on July 26, 2016, with four coaches, while 10 new coaches and two locomotives were added on Dec. 10, 2017. As of July 2020 a total of 27 coaches, 7 locomotives have been deployed to the route to give the over 15,000 passengers the maximum comfort and safety needed; this has generated over 10,000 employment to youths through direct and indirect jobs.

So far, Engr. Fidet Okhiria, Nigeria Railway Corporation Managing Director said that the Abuja- Kaduna railway generated over 130 Million monthly revenue; with N90 million spent on running cost and payment of staff. As at 2019, train operations nationwide generated about N3.09 billion and we are targeting about N6 billion when the Lagos-Ibadan and Itakpe-Warri come on board,” he said.

Another China loan collected by the Ministry of Transportation was the 156 km Standard Gauge line for Lagos-Ibadan section with the train maximum speed of 150 km/h, which was agreed on Aug. 18, 2017 at $1.26bn because of the peculiar transport deficit in Lagos and the economic activities, high population and activities of the Apapa port.

Negotiating the loan was important to resolve some of the challenges faced by residents of Lagos. Having a rail line from Lagos to Ibadan passing through the Apapa port was to open up the economic viability of the place and reduce the high traffic and gridlock at the Apapa axis.

Owning to the countless deaths recorded at the Apapa axis due to accidents caused by heavy duty trucks, the Minister of Transportation engaged the train service to evacuate cargoes from the port and ease business for shippers. This laudable initiative cannot be achieved without the loan. So far, about four trains of 20 wagons move cargoes out of the port weekly, which would be increased when the Lagos-Ibadan is fully completed.

According to Amaechi, rail infrastructure is capital intensive and cannot be funded by any private company either in Nigeria or in any other part of the world, noting that China gives the lowest interest rate compared to other countries.

He also saw a need for Nigeria not to continue to be a dumping ground of technology, but to be able to maintain, repair, and construct rolling stocks. In this regard, in 2019, the Kajola factory in Ogun State where locomotives, wagons, and coaches would be constructed was established by the Chinese firms at no cost to Nigeria.

Also, the Minister negotiated the establishment of the first Transport University in Africa by CCECC which would pave the way for the domestication of railway engineering and general transportation sciences in Nigeria and thereby bridging the technology and skill gap in the railway. This was geared towards promoting the development of indigenous capacity through technology acquisition and knowledge transfer for effective maintenance and operation of numerous railway infrastructure which is the first in Africa.

So far, 30 major and minor stations have been constructed under this administration which has created more jobs; Abuja-Kaduna has nine rail stations, Lagos-Ibadan with 10 stations while Itakpe-Warri has 11 rail stations.

The total loan stock is $3.121bn which constitutes 3.94% of $79.3billion total public debt and was meant for infrastructure development in various sector of the economy made up of the National Public Security communication system project for $399.5million which is 100 per cent disbursed, Nigerian Railway Modification Project (Idu-Kaduna section) at $500million is 100 per cent disbursed and commercial operations has commenced.

Abuja Light Rail for $500million which is 100 per cent completed yet to commence commercial operations, ICT Infrastructure Backbone Project for $100million which is 100 percent disbursed, Terminal Expansion Project for Abuja, Kano, Lagos and PortHarcourt Airports for $500million is 91 percent disbursed while Zungeru Hydroelectric Power Project for $984million is 52 percent disbursed.

However, Parboiled Rice Processing Plants Project for $325.6million nothing disbursed yet, Railway Modernisation Project for Lagos-Ibadan section for $1.26bn is 59 percent disbursed while Nigeria Rehabilitation and upgrading of Abuja- Keffi – Makurdi Road for $460.82m is 17 percent disbursed. There is zero disbursements for the supply of rolling stocks and depot equipment of the Abuja light rail project for $157million and Greater Abuja Water Supply for $381m.

Amaechi said that the rail project pending was the Ibadan to Kano, Port Harcourt to Maiduguri, then Lagos to Calabar which will ease business activities, decongest the road and open up more communities to infrastructure development with countless benefits.

All these projects when completed would turn around the Nigerian economy because even developed nations still seek financial assistance to achieve their development goals. With the right system and government in place, Amaechi said that 20 years was ample time to repay every loan collected from the Chinese government.

News Agency of Nigeria (NAN)

Share on Facebook

Featured

NELFUND: The Renewed Hope Engine Propelling Nigeria’s Youth into Tomorrow

Published

3 days ago

November 28, 2025

The Gleamer

By Dayo Israel, National Youth Leader, APC

As the National Youth Leader of the All Progressives Congress, I have spent most of my tenure fighting for a Nigeria where every young person, regardless of their ward or local government, family income, or circumstance, can chase dreams without the chains of financial despair.

Today, that fight feels like victory, thanks to the Nigerian Education Loan Fund (NELFUND). Launched as a cornerstone of President Bola Ahmed Tinubu’s Renewed Hope Agenda, this initiative isn’t just a policy tweak; it’s a revolution. And under the steady, visionary hand of Managing Director Akintunde Sawyerr, NELFUND has transformed from a bold promise into a roaring engine of opportunity, disbursing over ₦116 billion to more than 396,000 students and shattering barriers for over a million applicants.

Let’s be clear: NELFUND was always destined to be a game-changer. Signed into law by President Tinubu on April 3, 2024, it repealed the outdated 2023 Student Loan Act, replacing it with a modern, inclusive framework that covers tuition, upkeep allowances, and even vocational training—ensuring no Nigerian youth is left on the sidelines of progress.

But what elevates it from groundbreaking to generational? Leadership. Enter Akintunde Sawyerr, the diplomat-turned-executioner whose career reads like a blueprint for results-driven governance. From co-founding the Agricultural Fresh Produce Growers and Exporters Association of Nigeria (AFGEAN) in 2012—backed by icons like former President Olusegun Obasanjo and Dr. Akinwumi Adesina—to steering global logistics at DHL across 21 countries, Sawyerr brings a rare alchemy: strategic foresight fused with unyielding accountability.

As NELFUND’s pioneer MD, he’s turned a fledgling fund into a finely tuned machine, processing over 1 million applications since May 2024 and disbursing ₦116 billion—₦61.33 billion in institutional fees and ₦46.35 billion in upkeep—to students in 231 tertiary institutions nationwide. That’s not bureaucracy; that’s brilliance.

Sawyerr’s touch is everywhere in NELFUND’s ascent. Since the portal’s launch, he’s overseen a digital ecosystem that’s as transparent as it is efficient—seamless verification, BVN-linked tracking, and real-time dashboards that have quashed misinformation and built trust. In just 18 months, the fund has empowered 396,252 students with interest-free loans, many first-generation learners who might otherwise have dropped out.

Sensitization drives in places like Ekiti and Ogun have spiked applications — 12,000 in a single day in one instance, while expansions to vocational centers in Enugu pilot the next wave of skills-based funding. And amid challenges like data mismatches and fee hikes, Sawyerr’s team has iterated relentlessly: aligning disbursements with academic calendars, resuming backlogged upkeep payments for over 3,600 students, and even probing institutional compliance to safeguard every kobo. This isn’t management; it’s mastery—a man who doesn’t just lead but launches futures.

Yet, none of this happens in a vacuum. President Tinubu’s alliance with trailblazers like Sawyerr is the secret sauce securing Nigeria’s tomorrow. The President’s Renewed Hope Agenda isn’t rhetoric; it’s resources—₦100 billion seed capital channeled into a system that prioritizes equity over elitism. Together, they’ve forged a partnership where vision meets velocity: Tinubu’s bold repeal of barriers meets Sawyerr’s boots-on-the-ground execution, turning abstract policy into tangible triumphs. It’s a synergy that’s non-discriminatory by design—Christians, Muslims, every tribe and tongue united in access—fostering national cohesion through classrooms, not courtrooms.

As Sawyerr himself notes, this is “visionary leadership” in action, where the President’s political will ignites reforms that ripple across generations.

Why does this matter to us, Nigeria’s youth? Because NELFUND isn’t handing out handouts—it’s handing out horizons. In a country where 53% of us grapple with unemployment, these loans aren’t just funds; they’re fuel for innovation, entrepreneurship, and endurance.

Picture it: A first-generation polytechnic student in Maiduguri, once sidelined by fees, now graduates debt-free (repayments start two years post-NYSC, employer-deducted for ease) and launches a tech startup. Or a vocational trainee in Enugu, equipped with skills funding, revolutionizing local agriculture. This is quality education that endures—not fleeting certificates, but lifelong launchpads. Sawyerr’s focus on human-centered design ensures loans cover not just books, but bread—upkeep stipends of ₦20,000 monthly keeping hunger at bay so minds can soar. Under his watch, NELFUND has debunked doubts, refuted fraud claims, and delivered results that scream sustainability: Over ₦99.5 billion to 510,000 students by September, with 228 institutions on board.

As youth leaders, we see NELFUND for what it is: A covenant with our future. President Tinubu and MD Sawyerr aren’t just allies; they’re architects of an educated, empowered Nigeria—one where poverty’s grip loosens with every approved application, and innovation blooms from every funded desk. This isn’t charity; it’s an investment in the 70 million of us who will lead tomorrow.

We’ve crossed one million applications not because of luck, but leadership—a duo that’s turning “access denied” into “future unlocked.”

To President Tinubu: Thank you for daring to dream big and backing it with action.

To Akintunde Sawyerr: You’re the executor we needed, proving that one steady hand can steady a nation.

And to every Nigerian youth: Apply. Graduate. Conquer.

Because with NELFUND, your generation isn’t just surviving—it’s thriving, enduring, and eternal.

The Renewed Hope isn’t a slogan; it’s our story, now written in scholarships and success. Let’s keep turning the page.

Dayo Israel is the National Youth Leader of the All Progressives Congress (APC).

Share on Facebook