The Minister of Transportation, Mr. Rotimi Amaechi has assured that Nigerian government has the capability to pay back loans collected for the construction of rail projects within the stipulated period of twenty years.
Mr. Amaechi, who gave the assurance in a statement that China was the only country giving out loans with a low interest rate of two point eight per cent, noted that no country in the world would give out a loan without a guarantee to pay back such loans.
He further said that government needed the loans to boost infrastructure in the country as according to him, the sovereign guarantee and sovereign immunity clause raised by the NASS is a term used to ensure that loans collected are paid back.
The minister said in the case of a default, only the assets constructed with such a loan would be taken back acknowledging that the finance ministry in a payment plan had started paying back some of the loans collected.
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