A $20m (twenty million dollars) loan facility has been approved for the Lagos State strategic transportation plan by the Federal Executive Council (FEC). The approved loan was part of the $247 million loan approval granted yesterday 17th of April at the weekly FEC meeting presided over by President Buhari. The balance of $227 million of the total sum is earmarked for the rural electrification and West Africa Power projects.
The loan approval was announced by Finance Minister, Mrs Zainab Ahmed. Lagos state got this approval because it has the capability to repay the loan, the minister explained.
Zainab Ahmed, Minister of Finance
She made this known while informing State House Correspondents along with the Minister of Transportation, Mr Rotimi Amaechi, Federal Capital Territory (FCT) Minister, Bello Mohammed and the Senior Special Assistant (SSA) to the President on Media and Publicity, Garba Shehu.
Ahmed said that the Lagos State strategic transportation plan will directly impact 1.8 million Lagos residents and help improve the living standards of Lagosians. It is also expected to promote urban development in the transport sub-sector with projects like the Oshodi Interchange.
She continued: “The project has two major components. The first is to rehabilitate urban roads and the creation of a minimum of eight quality bus corridors and the creation of two multi-model inter-changes at Marina and Mile 2. The second objective is to provide technical support for implementation and management.”
BRT is a Lags state run transport plan that has revolutIonized mass transportation in Lagos
The finance minister went on to say that post completion, an accumulative 1.5 million users per day would use the inter-changes with about 620,000 boarding at Mile 2 and 480,000 boarding at Marina. Another estimated 630,000 will daily be boarding at TBS.
The Lagos State strategic transportation project will be executed by the Lagos Metropolitan Area Transport Authority (LAMATA).
LAMATA will oversee Lagos transportation plan
The FEC also approved developmental loans like the $150 million loan facility from African Development Bank (AfDB) and $50 million loan from African Grow Together Fund to help finance the Nigeria electrification project.
The minister clarified that the electrification project consists of four parts which are:
- The solar hybrid mini-grid for rural economic development
- Productive appliances equipment for off-grid communities
- Energizing education
- Institutional capacity building