Nigeria’s Federal Executive Council has approved major rail investments targeting key economic hubs, aimed at improving mobility and driving growth across urban centres.
The Federal Government of Nigeria has approved rail infrastructure projects valued at $2.99 billion for Lagos, Kano, and Kaduna states, as part of efforts to modernise transportation and stimulate economic development.
The approval was granted by the Federal Executive Council (FEC) during a meeting chaired by President Bola Tinubu at the State House in Abuja.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who briefed journalists after the meeting, said the projects include the Lagos Green Line Rail (Phase 1A), Kano Metro City Rail, and Kaduna Light Rail system.
According to Oyedele, the projects are designed to enhance urban mobility, ease congestion, and improve productivity in some of Nigeria’s most economically significant cities. He noted that the investments align with the administration’s broader development agenda focused on infrastructure and quality of life.
“These three cities are very important and strategic… places where targeted investments can yield significant results,” the minister said while explaining the rationale behind the selection.
Funding for the projects will be handled through the Ministry of Finance Incorporated (MOFI), with provisions for counterpart funding arrangements, officials confirmed.
The Lagos Green Line is expected to connect key commercial corridors, including Marina and Lekki, while the Kano and Kaduna rail systems are projected to improve movement of people and goods across northern economic centres.
Nigeria has increasingly prioritised rail development as a cost-effective and sustainable alternative to road transport, with several projects underway to address urban congestion and boost regional trade connectivity.
Authorities say the projects are expected to accelerate economic activity and improve transportation efficiency once implementation begins.