The Federal Executive Council (FEC) has approved a total of $2.99 billion for significant rail infrastructure projects across Lagos, Kano, and Kaduna. This decision aims to expand Nigeria’s urban rail network and is a key part of the federal government's capital expenditure plans for 2025 and 2026.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the approval of contracts for these three initiatives following a FEC meeting. The allocated funds will cover the Lagos Green Line Rail Project (Phase 1A), the Kano State Metro City Rail Project, and the Kaduna State Light Rail Project.
Oyedele stated that the 2025 capital expenditure cycle has been extended to June, with the remaining funding secured within the 2026 fiscal plan. Lagos, Kano, and Kaduna were prioritized due to their strategic economic importance, with the expectation that investments in these urban centers will yield strong returns and improve capital budget execution.
The Lagos Green Line project is a proposed 68-kilometre rail corridor designed to connect the Lekki Free Zone to Marina, serving key areas like Victoria Island, Lekki, and Ajah. The project is slated to feature 17 stations, advanced facilities including pedestrian bridges and elevators, and a depot near Sangotedo. Trains are expected to operate at speeds up to 100 km/h with a three-minute headway, potentially serving around 35,000 passengers per hour per direction.
In parallel, the federal government has also resolved a 20-year dispute with Bi-Courtney Aviation Services Limited, paving the way for regional flights to operate from Murtala Muhammed Airport terminal two (MMA2) in Lagos. Minister of Aviation and Aerospace Development, Festus Keyamo, announced that the agreement will see Bi-Courtney waive debt claims, return MMA1 to federal control, and drop exclusivity clauses in exchange for the concession of a stalled hotel and conference center project opposite MMA2.
This resolution will allow the federal government to begin earning its share from MMA2 operations immediately. Bi-Courtney has been granted 24 months to complete the conference center and hotel project.
