The Federal Government and two private firms have announced plans to build a $60 billion gas-powered high-speed rail network spanning 4,000 kilometres across Nigeria.
The deal involves De-Sadal Nigeria Limited and China Liancai Petroleum Investment Holdings Limited, with funding from the Asian Development Investment Bank. On Tuesday in Abuja, the consortium presented proof of funds to the Secretary to the Government of the Federation, Senator George Akume, in the presence of the Ministers of Transportation, Sa’idu Alkali, and State for Petroleum Resources (Gas), Ekperikpe Ekpo.
Chief Executive Officer of De-Sadal Nigeria Limited, Samuel Uko, said the first phase will link Lagos, Abuja, Kano, and Port Harcourt. “The rail line is from Lagos to Abuja, to Kano, and from Abuja to Port Harcourt. The federal government of Nigeria, through the ICRC, approved the outline business case, and now we have submitted the official approval form. I believe in the shortest possible time, Nigeria will start enjoying a high-speed rail,” he said.
Uko explained that $55 billion will go into the first phase, while the entire project is valued at $60 billion. He added that the 1,600-kilometre section linking the four major cities will take 36 months to complete, but some parts will be operational before the full deadline. “From Lagos to Lokoja, we will cut across about six states, and once we finish the first two or three states, people there will start using the train,” he said.
He noted that the project includes gas development to power the network. “The raw material for power is gas. So we have to develop the gas aspect to access more gas to power the high-speed rail project,” Uko said.
SGF Akume said the proof of funds will be verified. “We want to establish the real amount of money that is available. We don’t doubt them, but that is the normal procedure when huge sums of money are involved,” he said.
Minister of Transportation, Sa’idu Alkali, said the plan fits into the ministry’s goal of safe, secure, and affordable transport. “We have submitted the outline business case to ICRC. They have approved it. This is a step towards preparing the full business case before we take it to the Federal Executive Council,” he said.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, assured the investors of enough gas supply. “We have 210 trillion cubic feet of gas onshore and over 600 trillion cubic feet offshore. I can assure the investors they will not be lacking in gas,” he said.
