TRANSPORT SECTOR : Standard Chartered Bank to Finance Multiple Projects in Nigeria
[abelainfo.com] - To finance major transport projects in Nigeria, including the construction of the Lagos-Calabar highway and the upgrade of the Port Harcourt-Maiduguri railway line, Standard Chartered Bank will provide $3 billion to the country. These financing arrangements are expected to accelerate the progress of these infrastructure projects.
Nigeria has turned to Standard Chartered Bank to fund several of its major transportation projects, after China, the primary donor, delayed the release of the necessary funding. According to the Minister of Finance, Wale Edun, the bank is expected to provide $3 billion for these investments.
The announcement of this financing by Standard Chartered Bank comes at a crucial time for Nigeria, as the country seeks to catch up on its transportation infrastructure backlog. These new investments are part of the country’s national transportation plan, which involves massive expenditures on road and rail construction and rehabilitation.
Among the key projects set to benefit from this financing are the construction of the Lagos-Calabar highway and the upgrade of the Port Harcourt-Maiduguri railway line.
The 700 km Lagos-Calabar highway is touted as the country’s most significant. It will connect Lagos, the deep-sea port of Lekki, Ogun, Ondo, Delta, Bayelsa, Rivers, and Akwa Ibom. The authorities estimate the cost of this project at 15,000 billion naira.
The Port Harcourt-Maiduguri railway upgrade project is part of a broader program to reconstruct 2,788 km of standard gauge railway tracks. This Standard Gauge Railway (SGR) network aims to interconnect Nigeria’s territory and link the northern localities to the major ports in the south, with a planned extension to the city of Maradi in Niger.
After years of delay, China has recently re-engaged in the Port Harcourt-Maiduguri railway project and commenced work at the end of January 2023. The financing from Standard Chartered Bank is expected to accelerate the implementation of this strategic project.
In addition to these two flagship projects, other transportation infrastructure investments are also planned with the support of Standard Chartered Bank. These facilities are expected to provide a boost to several infrastructure projects, some of which had been suspended due to a lack of funding.
These new financing arrangements align with the Nigerian government’s goal of catching up on its transportation infrastructure backlog, a critical issue for supporting the country’s economic development. With these major investments, Nigeria hopes to improve its territorial connectivity and strengthen the efficiency of its transportation system, benefiting its population and economy.
Sorelle Ninguem
