The Federal Executive Council (FEC) has approved contracts for three major rail projects valued at approximately $2.99 billion, targeting key urban centres of Lagos, Kano, and Kaduna. The announcement was made by the Minister of Finance and Coordinating of the Economy, Taiwo Oyedele, during a briefing with State House correspondents on Wednesday.
Oyedele stated that the projects aim to enhance infrastructure, productivity, and economic growth, aligning with the federal government's broader development agenda. He emphasized that these cities are strategic economic hubs where targeted investments can yield significant returns. 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.
The financing will be facilitated through the Ministry of Finance Incorporated (MOFI), representing the Federal Government, with counterpart funding arrangements. The total value of the three rail projects is approximately $2.99 billion.
Power Sector Reforms and Task Force
The Minister of Information and National Orientation, Mohammed Idris, also briefed reporters, revealing that the FEC approved the creation of a Presidential Task Force on Power Sector Reform. This follows a report from a presidential committee established on March 4 to review the commercial and institutional framework for the proposed Grid Asset Management Company (GAMCO).
Idris announced the appointment of former Minister of Power, Lanre Babalola, as Special Adviser on Power to the President. The task force, chaired by the President, includes Babalola as a key member, aiming to drive comprehensive reforms in the electricity sector.
Road Projects and Cost Efficiency
Minister of Works, David Umahi, defended the costs of ongoing and newly approved road projects, asserting that they offer value for money despite rising construction expenses. He explained that the administration has standardized the use of Continuously Reinforced Concrete Pavement (CRCP) for federal highways, which is more durable and cost-effective over time. Umahi noted that many newly approved projects average about N3.2 billion per kilometre, even with increased cement prices.
The FEC meeting, presided over by President Bola Tinubu, also approved key federal appointments and other infrastructure decisions aimed at repositioning the power sector and accelerating development nationwide.
