Federal Executive Council Approves $2.99 Billion for Three Major Rail Projects in Lagos, Kano, and Kaduna

The Federal Executive Council has approved contracts worth $2.99 billion for three major rail infrastructure projects in Lagos, Kano, and Kaduna states, marking a significant push to modernise urban transportation across key economic hubs in Nigeria.

The approval was announced on Thursday after the weekly FEC meeting in Abuja, presided over by President Bola Tinubu. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, briefed State House correspondents on the council’s decision, describing the projects as transformative and aligned with the government’s broader development agenda.

“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 told journalists after the meeting.

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. Each project is designed to ease urban congestion, enhance mobility, and stimulate regional economic activity across the three cities.

The Lagos Green Line is arguably one of the most anticipated components of the Lagos metropolitan rail network. It is designed to run from Marina on Lagos Island through the Lekki corridor, which is home to some of the highest concentrations of commercial and residential activity in sub-Saharan Africa . The Kano Metro City Rail and Kaduna Light Rail target two of northern Nigeria’s most economically significant urban centres, aiming to ease congestion and support commerce.

Oyedele explained that the three cities were selected strategically, noting that targeted investments in these locations could deliver outsized returns. “These three cities are very important and critical. All cities are important, but this is where you have your 10 percent effort yielding 90 percent results,” he stated.

The minister disclosed that the projects will be financed through the Ministry of Finance Incorporated on behalf of the federal government, with provisions for counterpart funding arrangements 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,” Oyedele confirmed.

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 . He emphasised that the initiative reflects the government’s commitment to prioritising infrastructure as a catalyst for inclusive economic growth and urban mobility.

In addition to the rail approvals, the council also constituted a presidential power sector taskforce to be chaired by President Bola Tinubu, addressing another critical infrastructure challenge facing the nation . The FEC also approved contracts for road and bridge projects worth over N7 trillion, comprising 10 major projects spanning all six geopolitical zones, including a N1.86 trillion extension of the Lagos-Calabar Coastal Highway through Akwa Ibom State and a N548.98 billion contract to demolish and fully rebuild the Carter Bridge in Lagos.

The approvals align with the administration’s broader infrastructure agenda, which prioritises rail development as a cost-effective and sustainable alternative to road transport . The Lagos Green Line is expected to complement existing urban rail initiatives in Africa’s largest city, while the Kano and Kaduna rail projects are projected to boost commercial activity in northern Nigeria by improving passenger and freight movement.