According to the CBN development finance report which shows the intervention disbursement by the apex bank in the last four years, Lagos Government borrowed around N196 billion from the CBN for the execution of the Red and Blueline rail project in the state.
According to the report, Lagos state received N196 billion in batches of N93 billion, N60 billion and N43 billion. The N93 billion and N43 billion were for the Redline rail project, the N60 billion serves 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)”
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.
