The Federal Executive Council (FEC) has approved $2.99 billion for the Lagos Green Line, as well as rail projects in Kano and Kaduna, aimed at expanding Nigeria’s urban rail infrastructure.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the Council’s approval of contracts for the three major rail initiatives after the FEC meeting held on Thursday.
The approved sum is to cover the Lagos Green Line Rail Project (Phase 1A), the Kano Metro City Rail Project, and the Kaduna State Light Rail Project.
What they are saying
Oyedele said the $2.99 billion rail projects are linked to the federal government’s capital expenditure plans for 2025 and 2026. He explained that the 2025 capital expenditure (CAPEX) cycle has been extended to June, while the remaining funding is provided for in the 2026 fiscal plan.
He added that Lagos, Kano, and Kaduna were prioritised due to their strategic economic importance, noting that investments in such high-impact urban centres are expected to yield strong returns and improve capital budget execution.
- “The Federal Executive Council today approved the award of contracts for three transformative rail projects. One is the Lagos Green Line Rail Project Phase 1A. The second is the Kano State Metro City Rail Project. And the third is the Kaduna State Light Rail Project,” he said.
He further stated that funding would be structured through the Ministry of Finance Incorporated (MOFI), alongside counterpart financing arrangements, and implemented in line with the federal government’s broader infrastructure development agenda.
Get up to speed
The Lagos Green Line is a proposed 68-kilometre rail corridor from the Lekki Free Zone to Marina, designed to serve key areas including Victoria Island, Lekki, and Ajah.
- The Federal Government allocated N102.3 billion as counterpart funding in the 2026 budget cycle, following N146.14 billion provided in the 2025 budget proposal through the Ministry of Transportation.
- Valued at about $3 billion, the project will feature 17 stations, modern facilities such as pedestrian bridges, elevators, escalators, and a depot near Sangotedo.
- The system is designed for eight-car trains operating at up to 100 km/h, with a three-minute headway and a capacity of about 35,000 passengers per hour per direction.
- Phase 1 will run from Lekki First Tollgate to Epe, while a later phase will include a water-crossing segment from Marina.
Experts have raised concerns over station spacing and accessibility, warning that limited coverage in Victoria Island and wide gaps along the corridor could affect ridership. They recommended additional stations and better integration with existing transport networks.
Following the FEC approval, Phase 1A is expected to commence soon.
What you should know
In July 2025, former Minister of Transportation, Saidu Alkali, said the Federal Government had begun plans to support light rail development in key northern states, starting with Kaduna and Kano, as part of efforts to improve public transportation and boost economic productivity.
He added that the initiative would be implemented through the Ministry of Finance Incorporated (MOFI) and delivered via public–private partnership arrangements.
In September 2025, the Minister of Information and National Orientation, Mohammed Idris, disclosed that about N250 billion had been secured for rail development in Kaduna and Kano, with N150 billion allocated to Kano and N100 billion to Kaduna.
