President Buhari Demands Explanation For Diversion Of Rail Loan

President Muhammadu Buhari asked the finance ministry on Monday to explain why a $1 billion Chinese loan for a rail line was redirected to other projects.

Only $400 million of the loan granted by the

Export-Import Bank of China to build a rail track from Nigeria’s two largest cities, Lagos and Kano, still remained at the finance ministry, Buhari’s office said in an e-mailed statement after a meeting with the permanent secretary of the ministry of transport. The loan had been diverted to other purposes, according to the statement.

“I hope that due process was followed before such diversions were carried out,” Buhari who has reiterated his determination to clamp down on corruption said. “Taking money from one project to another has to be done properly.”

Many infrastructure plans in Nigeria have stalled or been abandoned as past governments have failed to meet counter party funding obligations on some projects, he said in the statement.