FEC Approves $2.81bn For Rail Transport, Rolling Stock Procurement

The Federal Executive Council (FEC) on Wednesday approved the sum of $2,810,574,064.92 to be released to the Ministry of Transportation to facilitate the procurement of rolling stocks.

The FEC meeting was headed by Vice President Yemi Osinbajo following the absence of President Muhammadu Buhari from the country.

The fund which was released after much deliberation would also be used for maintenance of equipment, especially for the Ibadan to Kano and Port Harcourt to Maiduguri rail lines.

The Minister of Transportation, Rotimi Amaechi while speaking on the development said the fund was approved to enable hitch-free operations of the nation’s revamped rail system.

He said, “I got an approval of the cabinet to procure rolling stocks, operational and maintenance equipment for the new railway projects corridors in Ibadan to Kano standard gauge and Port Harcourt to Maiduguri narrow gauge rail lines to the tune of $2,810,574,064.92, including 7.5 per cent tax.

“Rolling stocks are consumables for the maintenance and operation of the railway. So, currently, anytime you hear of breakdown, which was discussed in the cabinet, it’s because maybe we have run out of rolling stock and we’ve also run out of stock for the railway.

“So, with this, we will replace all the rolling stocks. They are essentially the consumables we use to maintain the trains, coaches and locomotives”