To pay off debts related to railroads, the federal government spent $74.25 million in 2019. Nigeria’s Idu-Kaduna Railway Modernization Project consumed $49.91 million, the Lagos-Ibadan Railway Modernization Project consumed $12.68 million, and the Abuja Light Rail Project consumed $11.66 million.
The expense of paying off the railway loans increased, costing Nigeria $121 million. The Nigerian Abuja Light Rail Project cost $50.75 million, the Nigerian Railway Modernization Project (Idu-Kaduna Section) $48.97 million, and the Nigerian Railway Modernization Project (Lagos-Ibadan Section) $21.28 million.
The total amount paid on repaying railway debt increased to $122.92m by 2021. In total, the Federal Government spent $125.06 million in 2022 to pay off railway debt.
The government failed to make money from the railways, which led to the mounting costs of servicing the debt on the railways. In 2022, security challenges threatened revenue from train services, especially the Abuja-Kaduna train services.
Economic and financial experts have warned the Federal Government that Nigeria risks losing key national assets to China in the event that it defaults in paying back loans obtained from China.