$11bn Rail Projects To Benefit 10 States

By Tosin Olatokunbo

No few than 10 states will benefit from the $11 billion federal government rail project which was approved by the Federal Executive Council, FEC on Wednesday.

The decision comes on the crest of a comment, by the Minister of Works, Babatunde Raji Fashola earlier in the week, that one of the major policy thrusts of the President Muhammadu Buhari’s administration is to use rail transportation to lift 100 million out of poverty.

According to the details from the meeting the project is expected to cover major capitals and towns, in at least 10 states in the southern parts of the country.

The Minister of Information and Culture, Lai Mohammed said the project would run from Lagos to Shagamu, Shagamu to Ijebu-Ode, Ijebu-Ode to Ore, Ore to Benin City, Benin to Sapele, Sapele to Warri, Warri to Yenagoa.

It will also cover Yenagoa to Port Harcourt, Port Harcourt to Aba, Aba to Uyo, Uyo to Calabar, Calabar to Akamkpa to Ikom, to Obudu Ranch; with a branch line from Benin City to Asaba, Onitsha Bridge and Port Harcourt to Onne Deep Seaport.

The FEC which was presided over by Vice President Yemi Osinbajo approved the project, though the council did not mention how funds for the project will be sourced.

Mohammed, said after the meeting that the Cuncil accepted two memos to expand and consolidate on the ongoing rail projects.

Mohammed said, “The first one actually has to do with the Kano-Jibia rail and then the other one has to do with the Port Harcourt-Maiduguri route.

“Actually, what was approved there today was funding to ensure that work starts immediately on those two routes. Another memo that was approved today was the ratification of the President’s approval for the award of the contract for the Lagos-Calabar coastal standard gauge rail.

“You’ll remember that this is a very old project which we inherited. Under the former administration, an approval was given, but nothing was done. Today, the council has given approval to commence the Lagos-Calabar coastal route,” Mohammed said.

The minister noted that the project is critical to the economic development plan of the President Muhammadu Buhari’s administration.

Lai disclosed that the route was critical because after the Lagos-Kano route, the Lagos-Calabar coastal route would link all coastal cities in Nigeria, adding that that the project would cost $11.17bn.

“This particular project is very important, especially for our coastal economy. The cost of the project is $11,174,769,721.74 and we have six years for the completion of this project,” Mohammed said.