FG Approves $2.99bn for Lagos Green Line, Kano Metro, Kaduna rail projects
The Federal Executive Council (FEC) on Thursday approved contracts worth $2.99 billion for three major rail projects across Lagos, Kano, and Kaduna states.
The approval was part of broader decisions taken during the Council meeting at the State House, Abuja, which also included the establishment of a presidential power sector reform task force to be chaired by President Bola Tinubu.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the rail approvals while briefing journalists after the meeting.
He said the projects were designed to boost economic growth, improve productivity, and enhance the quality of life across key urban centres.
“For economic development, you need infrastructure that works— infrastructure that supports productivity and growth, and improves the quality of life, in line with this administration’s development agenda,” Oyedele said.
He listed the approved projects as the Lagos Green Line Rail Project (Phase One), the Kano State Metro City Rail Project, and the Kaduna State Light Rail Project.
According to him, the projects will be financed through the Ministry of Finance Incorporated, with counterpart funding from the federal government.
“These three cities are very important. While all cities matter, this is where 10 per cent of effort can deliver 90 per cent of the results,” he added.
Lagos Green Line
The Lagos Green Line is a key component of the state’s metropolitan rail network. It is expected to run from Marina on Lagos Island to Lekki and surrounding areas, serving one of the busiest commercial and residential corridors in sub-Saharan Africa.
Northern rail projects
The Kano Metro City Rail and Kaduna Light Rail projects are also expected to significantly improve urban mobility and economic activity in two of northern Nigeria’s major cities.
Power sector reforms
In a separate briefing, the Minister of Information and National Orientation, Mohammed Idris, announced sweeping reforms in the power sector following a comprehensive review committee report.
He said the committee, chaired by the Chief of Staff to the President, was set up on March 4 to establish and operationalise the Grid Asset Management Company (GAMCO).
Following its recommendations, the Council approved several measures, including the appointment of Rilwan Babalola as Special Adviser to the President on Power.
The Council also approved the creation of a Presidential Power Sector Reform Task Force, which will be chaired by President Tinubu.
Idris described the decision as a major step toward addressing long-standing challenges in the power sector.
“Power remains a critical issue. The President is committed to ensuring economic prosperity through renewed attention to the sector,” he said.
The 10-member task force includes key ministers, the Attorney General of the Federation, the Chairman of the Nigerian Electricity Regulatory Commission, and representatives of electricity generation and distribution companies. The President may expand its membership when necessary.
According to Idris, the ultimate goal is a complete overhaul of the power sector to support industrialisation and long-term economic growth.