The Abuja-Kaduna train service makes about N300 million monthly, the Minister of Transportation, Mr Rotimi Amaechi, reports.
Amaechi said the ministry was beginning to contribute to the nation’s economic growth.
“We make N300million per month from the Abuja-Kaduna train,” the minister declared.
“Currently, we are running Lagos-Ibadan from the money we are making from Abuja-Kaduna rail service, at the end of the day, we pay back over N100 million to the federal government.”
Amaechi who was a former governor of Rivers State, further disclosed that the government is planning to put about 16 trains on the Lagos-Ibadan rail line, stressing that this will increase revenue generation from that axis.
The cost implications for developments experienced on the rail system, the minister said the country is capable of meeting its loan requirements.
Earlier in the year, Amaechi had stated that the Federal Government has borrowed about $2.5 billion for the construction of a railway linking Lagos to Ibadan.
Speaking further about the debts accrued in the course of developing the rail transport system, the minister expressed confidence that “Nigeria has the capacity to pay back” adding that the nation has commenced repayments.
He disclosed that more developments are coming to the rail sector which will further boost the revenue generated by the ministry and as such aid the government in settling its debts.
According to Mr Amaechi, work on the Kano-Maradi line and Port Harcourt-Maiduguri rails are expected to commence by the end of January.