Key points
- Federal Government sets up technical committee to review nationwide rail and energy project
- Proposed $200 billion project to span 4,000km across all 36 states under PPP model
- Initiative aims to boost transport, power supply, and create over two million jobs
Main story
The Federal Government has inaugurated a Technical Committee to evaluate proposals for a 4,000-kilometre integrated gas-powered high-speed rail project designed to connect major economic corridors across Nigeria.
The project, estimated at 200 billion dollars, is expected to be executed under a Public-Private Partnership (PPP) framework and regulated by the Infrastructure Concession Regulatory Commission.
Inaugurating the committee in Abuja on Thursday, the Secretary to the Government of the Federation, George Akume, said the initiative would link key cities including Lagos, Abuja, Kaduna, Kano, and Port Harcourt, while extending across all 36 states of the federation.
The proposal was submitted by a consortium led by DE-SADEL Consortium Nigeria Ltd., in partnership with China Lansay Petroleum Investment Holdings Ltd.
Akume described the project as a multi-phase programme integrating gas development, power generation and transmission, alongside the construction of a nationwide high-speed rail network.
He said the initiative has the potential to significantly transform Nigeria’s transport infrastructure, enhance energy security, stimulate industrial growth, and promote national integration.
The issues
Despite its ambitious scope, the project raises critical questions around funding, technical capacity, and long-term sustainability.
Given its estimated cost of 200 billion dollars, stakeholders have emphasised the need for rigorous due diligence to ensure transparency, financial viability, and alignment with national priorities.
Concerns also exist around regulatory compliance, security implications, and the credibility of financing sources, particularly for large-scale PPP projects in Nigeria.
What’s being said
Akume stressed the importance of a comprehensive and coordinated review, noting that inputs from security, financial intelligence, and regulatory agencies necessitated an inter-agency assessment.
“The project must be subjected to thorough technical, financial, and legal scrutiny to ensure it aligns with national development objectives,” he said.
The committee, chaired by the Permanent Secretary, Political and Economic Affairs Office in the Office of the SGF, includes representatives from key institutions such as the Central Bank of Nigeria, Nigerian Financial Intelligence Unit, Economic and Financial Crimes Commission, and Office of the National Security Adviser, among others.
Also speaking, the Chief Executive Officer of DE-SADEL Consortium, Samuel Uko, said the rail network would initially cover about 1,700 kilometres, connecting Abuja, Lagos, Kano, and Port Harcourt.
He added that trains would operate at speeds of up to 350 kilometres per hour, potentially reducing travel time between Lagos and Abuja to approximately two and a half hours.
What’s next
The committee is expected to verify funding sources, assess the technical capacity of the proponents, review the financing model, and evaluate regulatory and security implications.
It will also examine compliance with PPP frameworks and provide evidence-based recommendations to guide the Federal Government’s decision on the project.
Meanwhile, the project promoters say they are engaging stakeholders and working towards achieving financial close ahead of implementation.
Bottom line
While the proposed high-speed rail and energy project presents a transformative vision for Nigeria’s infrastructure and economic growth, its success will depend on rigorous scrutiny, credible financing, and effective execution to avoid the pitfalls that have plagued previous large-scale projects.
