President Muhammed Buhari has asked the Federal Ministry of Finance to explain why foreign loans obtained for rail project were not used for the purpose.

The president demanded for the explanation at the end of a presentation on the Ministry of Transport by the Permanent Secretary, Alhaji Mohammed Bashar at the Presidential Villa, Abuja, on Monday.

Buhari said it was disappointing to find that foreign loans obtained in line with signed agreements were moved from one project to another.

Buhari noted the diversion of a substantial part of one billion dollars from the Chinese Exim Bank, obtained for the construction of a standard gauge rail line linking Lagos with Kano.

“I hope that due process was followed before such diversions were carried out. Taking money from one project to another has to be done properly,” he noted.

The president held that government had, over the years, failed to meet its counterpart funding obligation on some projects, leaving such projects uncompleted or abandoned.

He added that there was a clear need to streamline, harmonise, and prioritise on-going projects in the transportation sector.

The permanent secretary had informed the president that only 400 million dollars of that loan remained with the ministry.

The permanent secretary also told the president about the encroachment on railway land, lack of security on inland waterways and the, ‘confused nature’ of agreements between Nigeria Ports Authority and ports concessionaires.

•Photo shows President Buhari.