Raphael Johnson
The Federal Government, De-Sadal Nigeria Limited, and China Liancai Petroleum Investment Holdings Limited are set to begin construction of a $60 billion gas-powered, 4,000-kilometre high-speed rail network in Nigeria.
The announcement came in Abuja on Tuesday when the consortium presented proof of funds to the Secretary to the Government of the Federation (SGF), Senator George Akume, in the presence of the Ministers of Transportation, Sa’idu Alkali; and State for Petroleum Resources (Gas), Ekperikpe Ekpo, among others.
De-Sadal Nigeria Limited’s CEO, Samuel Uko, speaking for the consortium, said the first phase will link four major cities — Lagos, Abuja, Kano, and Port Harcourt. The project, financed through the Asian Development Investment Bank, has already secured approval of its outline business case from the Infrastructure Concession Regulatory Commission (ICRC).
According to Uko, $60 billion has been approved for the project, with $55 billion earmarked for the first phase. The initial 1,600 kilometres will be completed within 36 months, although partial operations will start earlier as segments are finished. “For instance, from Lagos to Lokoja, communities in the first completed sections will begin enjoying the speed train even before the full project ends,” he explained.
The initiative also incorporates gas infrastructure to power the network. “The raw material for power is gas. We must develop this aspect to ensure adequate supply for the rail system,” Uko added.
SGF Akume noted that the proof of funds would undergo standard verification. “We want to confirm the actual amount available. We don’t doubt them, but this is the normal procedure when dealing with such large sums,” he said, stressing that Nigeria remains business-friendly under President Bola Tinubu’s administration.
Transport Minister Sa’idu Alkali confirmed the alignment of the project with the ministry’s mandate to deliver safe, secure, and affordable transport. He said the next step is preparing the full business case for ICRC before seeking Federal Executive Council approval.
Gas Minister Ekperikpe Ekpo assured the investors of abundant resources, citing Nigeria’s 210 trillion cubic feet of proven gas reserves and over 600 trillion cubic feet offshore. “I can assure the investors they will not be lacking in terms of gas,” he said.