Nigeria's Ambitious High-Speed Rail Project Receives $60 Billion Financial Backing
Nigeria's plan to develop a high-speed rail network has taken a significant step forward with the submission of a $60 billion "proof of funds" by a consortium of companies to the government. This development indicates a major financial commitment to the long-envisioned project.
Key Details:
The Project: The high-speed rail network is proposed to be 4,000 kilometers long, with the first phase covering 1,600 kilometers. This initial phase, estimated to cost $55 billion, will connect four major economic hubs: Lagos, Abuja, Kano, and Port Harcourt.
Funding and Partners: The funding is reportedly being provided by the Asian Development Investment Bank. The project is a collaborative effort between the Nigerian firm De-Sadel Nigeria Limited and China Liancai Petroleum Investment Holdings Limited.
Project Timeline: The consortium has projected that the first phase will be completed within 36 months. A key strategy is to open completed sections of the rail line in phases to allow for early public use and benefit. The network is expected to drastically reduce travel time between major cities, such as Lagos and Abuja, to under three hours.
Integration with Gas Sector: A notable feature of the project is its connection to Nigeria's gas industry. The trains are intended to be powered by gas, and the plan includes the construction of a gas network to support the railway. This initiative aligns with the government's strategy to leverage the country's vast gas reserves.
Next Steps: The Infrastructure Concession Regulatory Commission (ICRC) has already approved the "Outline Business Case" for the project. The next step involves the government conducting a thorough review and validation of the "proof of funds" to ensure its authenticity and viability. This crucial verification process must be completed before the final go-ahead for construction is granted.
