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Senate committee tasks Chinese construction firm on local content

Senate Committee on Foreign and local debts Tuesday tasked Chinese Construction Firm working on Nigeria Railways to use Nigerian workers at all levels in the construction works.

This followed the revelation by the Minister of Finance, Mrs Kemi Adeosun that foreign loans offered Nigeria by Chinese EXIM bank was tied to a condition that Chinese Construction Firms would execute the contract.

“Distinguished Chairman, part of the condition attached to the Chinese EXIM bank loan is that Chinese Construction Firm would be the one to execute railway contract”, she said.

The Minister also noted that Chinese EXIM bank loan was highly competitive, hence, the approval was based on first come, first served.

According to her, Nigeria had almost lost credibility in accessing loans because of lack of payment of counterpart funds in the past, adding that President Buhari’s state visit to China in 2015 did restore credibility with which Nigeria was working on.

The Minister who was earlier invited to brief the Committee on the proposed loan of $5,851 billion told the Committee that execution of railway projects lies with the Federal Ministry of Transportation, urging lawmakers to seek clarification.

“Concerning the execution of railway projects, it lies with the Ministry of Transportation. Ours is to facilitate the loan”, she said.

She also added that Port Harcourt to Maiduguri rail line has been discussed with the aim of going into action.

Meanwhile, Deputy Senate Committee Chairman, Senator Philip Gyunka explained that the model railway being constructed by the Chinese firm was not what he saw in China.

He cautioned that the supervising agency should ensure quality of job so that it could stand the test of time.

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