The Federal Executive Council (FEC) has approved the award of contracts for three major rail projects valued at approximately $2.99 billion, aimed at enhancing infrastructure, productivity, and economic growth in key urban centers. Minister of Finance and Coordinating of the Economy, Taiwo Oyedele, made the announcement on Thursday after the council meeting in Abuja.
Projects Approved
According to Oyedele, the approved projects include Phase 1A of the Lagos Green Line rail, the Kano State Metro City rail project, and the Kaduna State light rail system. He described these cities as critical economic hubs where targeted investments can yield significant results.
“You would agree that 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 stated.
Financing and Cost
The projects will be financed through the Ministry of Finance Incorporated (MOFI) on behalf of the federal government, with provisions for counterpart funding arrangements. The total cost of the three rail projects is approximately $2.99 billion.
“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,” Oyedele said.
Government's Commitment
The minister added that the initiative reflects the government’s commitment to prioritizing infrastructure as a catalyst for inclusive economic growth and improved urban mobility. The rail projects are designed to support the broader development agenda and enhance the quality of life for citizens.
“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,” Oyedele remarked.
