The Federal Executive Council, FEC, has approved contracts worth $2.99 billion for three major rail projects in Lagos, Kano and Kaduna states to boost infrastructure, ease urban congestion and drive economic growth.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the approvals on Thursday while briefing State House correspondents after the council meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
“Council today approved the award of contracts for three transformative rail projects. One is the Lagos Green Line rail project, phase one. The second is the Kano State Metro City rail project. And the third is the Kaduna State Light Rail project,” Oyedele said.
He said the projects will be sponsored by the Ministry of Finance Incorporated, MOFI, on behalf of the Federal Government, with counterpart funding from other sources. “These projects will be sponsored by MOFI on behalf of the Federal Government of Nigeria, with some counterpart funding. Altogether, they will cost about $2.99 billion,” he stated.
Oyedele said the initiatives align with the administration’s development agenda to invest in infrastructure that enhances productivity and improves living standards. “We know that for economic development, you need infrastructure that works, one that enhances productivity and growth, and also improves the quality of life of the people,” he said.
According to him, Lagos, Kano and Kaduna were selected because of their strategic importance as economic hubs where targeted investments can deliver outsized returns. “These three cities are very important and strategic. All cities are important, but these are places where 10 per cent effort can yield up to 90 per cent results,” Oyedele said.
The Lagos Green Line, Phase 1A, is a proposed 68-kilometre rail corridor designed to run from Marina on Lagos Island through the Lekki corridor — one of sub-Saharan Africa’s densest commercial and residential hubs — and extend to the Lekki Free Zone. The line will feature 17 stations, pedestrian bridges and elevators, with trains operating at speeds up to 100 km/h and a three-minute headway, potentially serving around 35,000 passengers per hour per direction.
The Kano State Metro City rail project and the Kaduna State Light Rail system are designed to ease traffic congestion, improve passenger and freight movement, and stimulate commercial activity in northern Nigeria’s major urban centres.
Oyedele added that the projects have already been captured in the extended 2025 budget and are expected to strengthen the capital component of the overall investment framework. “The projects are to be sponsored by the Ministry of Finance Incorporated,” he said.
The FEC also constituted a presidential power sector task force to be chaired by President Bola Tinubu, signaling a parallel push to address energy challenges alongside transport development.
The approvals come as the Tinubu administration accelerates efforts to modernise urban transport networks and improve connectivity across key economic corridors, despite fiscal constraints and elevated debt-servicing costs.
