FG didn't approve $1.8bn loan for the Kano rail project - DMO

Debt management office Nigeria (DMO)
Emeh Joy

The Debt Management Office has debunked claims that the Federal Government, through its office, approved $1.8bn for the construction of light rail project in Kano.

The position of the DMO however, stands to contradict that of the Kano State Government which claimed the loan had already scaled all due process.

In a statement by the Director, Legal Services, DMO, S.H. Barkum, a copy which was made available to reporters in Kano on Wednesday, the Federal Government insisted that it received no submission regarding Chinese loan on mono-rail and Kano State Government.

The DMO Legal Director explained this via a letter titled, "DMO/PSRM/038/T/30" which was addressed to Kano Unity Forum under the leadership of Alhaji Bashir Tofa.

He explained there that "no agreement" was reached by any party whatsoever on the rail project in Kano.

Before now, the Kano Unity Forum had recently petitioned President Muhammadu Buhari, Office of the Debt Management, National Assembly and Chinese Government to stop the Kano State Government from embarking on the white elephant project.

According to the Forum, the project would rather put Kano state in untold liability which is likely to multiply in the next 50 years.

In a petition which was signed by a former presidential candidate, Bashir Tofa, the group had said the project had so much ambiguity surrounding its process.

The Kano state governor, Abdullah Ganduje, in reaction to the petition had at a function recently held in the Government House, insisted that no amount of blackmail would hinder the intention of his administration to access the Chinese Bank loan to execute the light rail project.

In response to Kano Unity Forum's request, the DMO said, "The DMO wishes to inform you that no agreement in the like of the subject of your letter exists in its record".

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