With this development, the Senate has approved a harmonized version of the 2016-2018 federal government's external borrowing plan for the project.

This resolution was a sequel to a motion presented by Senator Sadiq Umar, APC, Kwara North. In his presentation the senator noted that in 2020 the National Assembly approved loans worth $22.8 billion for the railway modernization project of Kaduna-Kano segmen, recalled that the National Assembly approved the sum under the 2016-2018 Medium Term External Borrowing (Rolling) plan.

The Euro-denominated Commercial loan with a maturity of fifteen years, at an interest rate of 2.7 percent plus six months and 0.5 per cent upfront fee has a commitment period equal to the entire duration of the debt payment agreement .

The Senator who also recalled that the communication from the Federal Ministry of Finance requesting the approval of modifications to the financing proposal for the Nigerian Railway Modernisation Project (Kaduna-Kano segment), said, “This was occasioned by the COVID-19 pandemic whereof China Exim Bank withdrew its support to finance the project.

Umar further explained that the contractor, CCEC Nigeria Limited, in collaboration with the Federal Ministry of Transportation engaged China Development Bank (CDB) as a financier for this project. CDB was to provide $973 million for its completion.

In his contribution, Senator Isa Jibrin, APC-Kogi East who noted that there was a wide gap between the 22.7 billion dollars and the 973.4 dollars, said: “Was any disbursement made out of the 22.7 billion dollars.”

He advised that going forward, we should pay close attention to the core structures of these loans.

In clarifying the issue, Chairman of the Senate Committee on Local and Foreign Debts, Senator Clifford Ordia (PDP) stated: "The submission of $22.7 billion was for five projects under the 2016-2018 external borrowing plan."

“Incidentally some of the other projects were approved apart from the project that has to do with the Kaduna-Kano segment.

“The financier declined to finance the project. So they had to look for a contractor to finance the segment of the rolling plan.”

In his remarks, the President of the Senate, Senator, Ahmad Lawan explained that “this issue started in 2018 but we approved it in 2020.

“We are not talking about the approval of the loan, it’s the financier that backed out and there is now another financier.”