FEC Approves $2.99bn Rail Projects for Lagos, Kano, Kaduna to Boost Urban Mobility

Oyedele says strategic investments will drive productivity, growth, and quality of life

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By John Ishaku | Abuja, Nigeria | April 30, 2026

The Federal Executive Council (FEC) has approved contracts worth $2.99 billion for three major rail projects in Lagos, Kano, and Kaduna, in a move aimed at strengthening infrastructure and accelerating economic growth.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the approval while briefing State House correspondents after the council meeting on Thursday.

He said the projects are part of the federal government’s broader strategy to enhance productivity, improve urban mobility, and raise living standards across key economic centres.

“We know that for economic development, you need infrastructure that works—one that enhances productivity and growth, and also improves the quality of life of the people,” Oyedele stated.

Three Strategic Rail Projects
According to the minister, the approved projects include:

Phase 1A of the Lagos Green Line Rail
Kano Metro City Rail
Kaduna Light Rail System

He described the three cities as critical economic hubs where targeted investments can deliver significant national impact.

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High Impact Investment Strategy
Oyedele emphasised that focusing resources on strategic urban centres could yield disproportionate economic benefits.

“These are places where relatively small efforts can generate very large results in terms of economic output and development,” he explained.

Financing Through MOFI
The minister revealed that the projects will be financed through the Ministry of Finance Incorporated (MOFI), acting on behalf of the Federal Government, with provisions for counterpart funding arrangements.

He added that the combined cost of the projects is estimated at $2.99 billion.

Infrastructure as Growth Catalyst
The initiative, according to Oyedele, reflects the government’s commitment to prioritising infrastructure as a key driver of inclusive economic growth and improved urban transportation systems.

The approval marks a significant step in Nigeria’s infrastructure development agenda, with expectations that the rail projects will ease congestion, stimulate economic activity, and enhance connectivity across major cities.