The lawmakers adopted a motion replacing the China Exim Bank with China Development Bank as the financier of the rail line.
The House of Representatives has approved the change of financier for the Nigerian Railway Modernisation Project (Kaduna-Kano segment).
China Development Bank (CDB) has been approved as the financier to fund the $973.4 million Kaduna-Kano segment as part of the railway modernisation project.
CDB is taking over from China Exim Bank, which withdrew from the project due to the impact of COVID-19.
The approval was a sequel to a motion moved on Tuesday by Hassan Fulata (APC, Jigawa) to modify the $22.7 billion 2016-2018 Federal Government External Borrowing (Rolling) Plan.
The $22.7billion External Borrowing (Rolling) Plan was approved by the Senate and the House of Representatives on 5 March 2020 and 2 June 2020, respectively.
Presenting the motion, Mr Fulata said that the Ministry of Transportation and the CCECC Nigeria Limited engaged China Development Bank following the withdrawal of China Exim bank.
He said that the federal ministry of finance wrote the House for approval to change the financier.
"To secure funds for the project, the Contractor (CCECC Nigeria Limited) in collaboration with the Federal Ministry of Transportation engaged China Development Bank (CDB) as the new financier in the sum of $973,474,971.38," he said.
Speaking against the request, the Chairman of the House Committee on Agreement, Treaties, and Protocol, Nicholas Ossai (PDP, Delta), said the minister of finance must provide the new details on the agreement before the approval is granted.
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"We are changing from China Exim Bank to China Development bank, which means the addition of another agreement. If we are going to pass this resolution, that means the members of this House won't see those agreements.
"The minister of finance should come with the agreement as agreed with the Development Bank of China so that members can be guided when approving such a loan," he said.
However, Speaker Femi Gbajabiamila overruled the objection raised by Mr Ossai, and put the motion to question. Members voted overwhelmingly to pass the motion.
Other conditions approved by the House include: 15 years loan maturity, 2.7 per cent interest rate, an upfront commitment of 0.5 per cent and commitment fee of 0.4 per cent
