Sanwo-Olu gets Assembly’s approval of 153bn for Lagos Rail Mass Transit construction

The Lagos House of Assembly has approved the sum of N153 billion sought by Governor Babajide Sanwo-Olu to construct the Lagos Rail Mass Transit( LRMT) also known as the Red and Blue Line.

The House unanimously approved the amount after the House Committee on Finance Chairman, Hon Rotimi Olowo’s report presentation was adopted as the resolution of the House.

It would be recalled that Governor Babajide Sanwo-Olu had on Monday, September 14, 2020, sought the approval of the assembly for the said amount to enable government finance the construction of the Lagos Rail Mass Transit( LRMT), from Marina to Agbado ( Red Line) and from Mile 2 through Alaba, Iganmu to Marina( Blue Line).

The project when fully operational is expected to afford 1million capacity at a stretch.

Olowo, however hinted that the China Civil Engineering Construction Corporation (CCECC), handlers of the said 37km rail route project promised to deliver soon once the payment of 30bn is made, while balance could then be paid after project completion is certified by an auditor.

There is a two years moratorium on the project, as a whooping sum of 360bn would have been saved owing to rail track

According to him N93 billion of the sum would be sourced through Differentiated Cash Reserve Requirement (DCRR) from Central Bank of Nigeria( CBN) with intervention facilities from First Bank of Nigeria(FBN), United Bank for Africa( UBA), and Zenith Bank for the Red Line, the other N60 billion would be sourced from DCRR CBN Intervention loan funds for the Blue Line.

The Speaker Rt.Hon Mudashiru Obasa then directed the Acting Clerk Mr Olalekan Onafeko to communicate the resolution of the House to the appropriate quarters.