Federal Government Allocates N102.3bn Counterpart Funding for Lagos Green Line Rail in 2026 Budget
The Federal Government has outlined a significant financial commitment to the Lagos Green Line metro rail project in its 2026 budget proposal. A sum of N102.3 billion is designated as counterpart funding for Phase One of the project. This follows a previous allocation of N146.14 billion in the 2025 budget proposal, indicating sustained federal support as the Lagos government announces further implementation plans. The allocated funds are scheduled for transfer to the Ministry of Finance Incorporated (MOFI), the entity responsible for managing Federal Government equity and structured financing for major infrastructure.
Broader Railway Investments in the 2026 Appropriation Bill
Beyond the Lagos Green Line, the 2026 budget proposal includes substantial provisions for other critical rail initiatives. Notably, N68.5 billion is earmarked for consultancy services on the Lekki–Ijebu Ode–Ore–Kajola railway and the coastal corridor linking Badagry, Apapa, and Tin Can. A further N29.04 billion is allocated for ongoing modernization projects. This covers the completion of the Abuja–Kaduna line, additional works on Lagos–Ibadan, and the rehabilitation of the Itakpe–Ajaokuta corridor, including station construction in Agbor. The budget also provides for feasibility studies on new standard-gauge lines and transaction advisers for the concession of several projects, including Abuja–Baro–Itakpe and Kano–Maradi.
Project Overview and Expert Analysis
The Lagos Green Line is a proposed $3 billion, 70-kilometre rail network from Marina to the Lekki Free Trade Zone, featuring 17 stations. While the federal commitment is clear, transportation experts have highlighted considerations for the project’s success. Analyses point to station spacing in key areas like Victoria Island and along the Lekki corridor, suggesting that enhanced coverage and integration with existing transport lines could improve ridership and operational efficiency. As plans are finalised, the strategic partnership between federal and state authorities will be crucial.
This budgetary move occurs alongside other significant developments in Nigerian transport, such as when Overland Airways resumes certain regional routes. The focus on rail infrastructure represents a long-term strategy for national connectivity, distinct from the immediate operational decisions seen in aviation or the political discourse as seen when the ADC decries non-payment of allowances. The federal government’s structured approach to financing, similar to mechanisms that could be used should Russia moves revive interest in international project financing, underscores the scale of these infrastructure ambitions.
