Federal Government unveils major rail expansion, launches power reform committee
The Federal Executive Council on Thursday approved contracts valued at $2.99bn for three major rail projects in Lagos, Kano and Kaduna states as part of efforts to strengthen infrastructure and boost economic growth across the country.
The council also approved the establishment of a presidential taskforce on power sector reform to be chaired by President Bola Tinubu.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed the approvals while briefing journalists after the council meeting held at the Presidential Villa, Abuja.
He said the projects reflected the administration’s commitment to improving transportation infrastructure and enhancing productivity in key urban centres.
According to him, the approved rail projects include the Lagos Green Line Rail Project Phase One, the Kano Metro City Rail Project and the Kaduna State Light Rail Project.
He explained that the projects would be financed through the Ministry of Finance Incorporated on behalf of the Federal Government alongside counterpart funding arrangements.
Edun stated that the three cities were strategically important to the country’s economic development.
“For economic development, you need infrastructure that works, infrastructure that improves productivity and growth, and also improves the quality of life in line with the development agenda of this government,” he said.
He added that the government considered investments in Lagos, Kano and Kaduna crucial because of their economic significance and population concentration.
The Lagos Green Line Rail Project is expected to serve major commercial and residential districts stretching from Marina on Lagos Island through the Lekki corridor and adjoining communities.
The corridor is regarded as one of the busiest and fastest growing economic zones in sub Saharan Africa, with increasing demand for efficient transportation systems.
The Kano Metro City Rail Project and Kaduna Light Rail Project are also expected to improve mobility, reduce traffic congestion and support commercial activities in northern Nigeria.
Meanwhile, the Minister of Information and National Orientation, Mohammed Idris, announced that the council had adopted major recommendations aimed at reforming the country’s troubled power sector.
Idris said the decisions followed the submission of a report by a committee headed by the Chief of Staff to the President, Femi Gbajabiamila, which reviewed the commercial, investment and institutional framework for the proposed Grid Asset Management Company.
He revealed that the council approved the appointment of Rilwan Babalola as Special Adviser to the President on Power.
The minister further disclosed that President Tinubu would personally chair the newly established Taskforce on Power Sector Reform.
According to Idris, the committee is expected to drive comprehensive reforms that will reposition the sector and support industrial development.
He noted that the taskforce includes the Minister of Finance and Coordinating Minister of the Economy, the Minister of State for Gas, the Minister of Industry, Trade and Investment, the Minister of Information and National Orientation, the Attorney General of the Federation and Minister of Justice, the Chairman of the Nigerian Electricity Regulatory Commission, as well as representatives of electricity generation and distribution companies.
Idris said the membership could be expanded at the discretion of the President.
“The goal is to ensure a total overhaul of the power sector because without stable electricity, meaningful industrialisation and economic prosperity cannot be achieved,” he said.