The Lagos state government borrowed around N196 billion via the Central Bank of Nigeria (CBN) intervention funds for the Redline and Blueline rail projects across the state.
This is contained in the CBN development finance report detailing the intervention disbursement by the apex bank in the last four years.
According to the report, Lagos state received N196 billion in three tranches of N93 billion, N60 billion and N43 billion.
While the N93 billion and N43 billion were for the Redline rail project, the N60 billion served as part finance obligation from the Lagos state government to CCECC for the construction of the Blue Line rail project.
It stated: “To part-finance the payment of obligations of Lagos State Government to China Civil Engineering Construction Company (CCECC) Nigeria Limited for the construction of a Rail Line (Blue line project) and associated infrastructure from Okokomaiko to Marina under the Lagos Rail Mass Transit (LRMT).”
Beneficiaries of DCRR and repayments so far
- The funds were disbursed to the Lagos state government under the Differentiated Cash Reserve Requirement (DCRR) scheme established in 2018.
- The program benefitted Lagos, Imo and Ogun states together with 496 other beneficiaries in both the public and private sectors.
- The Lagos state government have repaid about N6.1 billion from the N90 billion loan received under the program and N2.71 billion from the N60 billion package. Of the 43 billion received again for the Redline project only about N534 million have been repaid.
- Funds disbursed under the Differentiated Cash Reserve Ratio (DCRR) had one of the lowest repayment rates among the different CBN intervention finance programs.
- The DCRR has recorded only 11.71% (282.04 billion) repayment rate from the N2.408 trillion disbursed under the program.
The Lagos Blue and Red Line Rail project is a multimodal transportation system to move commuters across different locations within the state as fast as possible thereby reducing commuting time significantly.
The Blue Line rail project of the Lagos Rail Mass Transit constructed by the Lagos Metropolitan Area Transport Authority (LAMATA) 27-kilometre rail route designed to run from Okokomaiko eastwards to Mile 2 and then proceed to Marina via Ijora. The first phase of the project began operation around September 2023.
The Red Line is a 37km rail route proposed to run from Agbado to Marina with 13 stations at Agbado, Iju, Agege, Ikeja, MMIA International, (domestic), Oshodi, Mushin, Yaba, Ebute Metta, Iddo, Ebute Ero, and Marina.
The Lagos state Governor, Babajide Sanwo-Olu had earlier stated that the rail projects across the state cost over N100 billion.