FEC approves $2.99bn rail projects, sets up power reform taskforce

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

Speaking after the Council meeting at the State House in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the projects are central to the administration’s development agenda.

“For economic development, you need infrastructure that works—one that helps productivity and growth, and improves the quality of life,” he said. “Council today approved the award of contracts for three transformative rail projects.”

He listed the المشاريع as the Lagos Green Line Rail (Phase One), Kano Metro City Rail, and Kaduna Light Rail, noting that they will be financed through the Ministry of Finance Incorporated on behalf of the Federal Government, with counterpart funding.

Oyedele emphasised the strategic importance of the selected cities, stating, “These three cities are very important and critical. All cities are important, but this is where you have your 10 per cent effort yielding 90 per cent results.”

The Lagos Green Line Rail is expected to connect Marina on Lagos Island to Lekki, serving one of the busiest commercial corridors in sub-Saharan Africa. The Kano and Kaduna rail projects are also targeted at improving mobility in key northern economic centres.

In a separate development, the FEC approved the creation of a presidential taskforce to reform the power sector, to be chaired by President Bola Tinubu.

The Minister of Information and National Orientation, Mohammed Idris, said the decision followed a detailed review by a committee set up earlier in March.

“That committee undertook a very comprehensive review of the commercial, investment and institutional framework,” Idris said. “Based on the report submitted to Council today, Council took very far-reaching decisions.”