The Federal Government, in the N49.74 trillion proposed 2025 budget, has allocated N41.49 billion specifically for rail infrastructure and modernization projects.
For the 2025 fiscal year, the Ministry of Transport will receive a total allocation of N256.73 billion to support its initiatives. Of this amount, N223.80 billion is earmarked for capital expenditure, with N30,986,636,237 designated for personnel costs and N1,940,798,202 for overheads.
This information was obtained from the 2025 copy of the Federal Government’s Final Budget Proposal, which outlines plans for extensive infrastructure development.
Key rail-related projects under this allocation include the completion of the Abuja-Kaduna railway project, the Lagos-Ibadan rail line, and associated additional works, with specific funding indicated for each.
The budget also provides for the rehabilitation of the Itakpe-Ajaokuta rail line, the construction of 12 station buildings, and track-laying works at railway ancillary facilities in Agbor.
More insights
Furthermore, funds have been earmarked for the design, manufacture, supply, and installation of rolling stock, spare parts, and maintenance equipment for ongoing railway modernization projects.
Another significant component is the installation of a signal and telecommunication system on the Itakpe-Ajaokuta-Warri railway line, alongside the installation of an acoustic sensing security surveillance system for the Abuja (Idu)-Kaduna route and other security gadgets, with individual allocations for each.
- The 2025 budget also prioritizes the completion of feasibility studies for new standard gauge rail lines, the engagement of transaction advisors for the concession of the Abuja-Baro-Itakpe segment and the Kano-Maradi line, and the provision for railway modernization projects, each with specific budget allocations.
- These are the projects for which the N41.49 billion will be used, highlighting the FG’s commitment to developing a robust rail network to enhance connectivity and economic growth.
With this allocation, the FG aims to address gaps in the country’s rail infrastructure, boost economic activities, and improve the efficiency of transportation systems nationwide.
What you should know
The Federal Government’s rail projects have shown strong growth in passenger numbers and revenue generation.
The latest National Bureau of Statistics (NBS) report indicates a 25.05% increase in passenger numbers year-on-year for Q3 2024, with 743,205 passengers compared to 594,348 in Q3 2023. This growth was reflected in revenue, which reached N1.70 billion in Q3 2024, up 13.83% from N1.49 billion in the same period last year.
- Earlier in the year, passenger numbers and revenue also increased, with Q1 2024 seeing 675,293 passengers and N1.42 billion in revenue, and Q2 2024 recording 689,263 passengers and N1.69 billion in revenue.
- On the freight side, rail cargo volume grew by 39.7%, reaching 96,401 tons in Q3 2024, up from 69,003 tons in Q3 2023.
- Revenue from cargo transport surged by 89.6%, totaling N412.57 million, though this was lower than the N607.31 million recorded in Q1 2024.
However, pipeline transport saw a decline, with volumes falling by 43.5% to 7,320 tons, and revenue from pipeline operations dropping to N51.85 million.
