The Federal Government on Thursday inaugurated an inter-agency technical committee to review the credibility and feasibility of a proposed $200bn integrated gas-powered high-speed rail project.
- +Nigeria’s $200bn mega rail project faces feasibility review
The project is intended to span about 4,000 kilometres across major economic corridors, including Lagos.
The project is intended to span about 4,000 kilometres across major economic corridors, including Lagos.
The Secretary to the Government of the Federation, George Akume, who inaugurated the committee in Abuja, said the panel would evaluate the proposal submitted by a consortium led by De-Sadel Nigeria Limited in collaboration with China Liancai Petroleum Investment Holdings Limited.
Akume said the proposed project was envisioned as a multi-phase programme integrating gas development, power generation and transmission, alongside the construction of a nationwide high-speed rail network.
“The proposed project is estimated at $200bn and is envisioned as a multi-phase programme that integrates gas development, power generation and transmission.
“The construction of a 4,000-kilometre high-speed rail network connecting major economic corridors of the country, including Lagos, Abuja, Kano and Port Harcourt,” he said.
Akume noted that the project had the potential to transform Nigeria’s transport and energy infrastructure but stressed that it must undergo thorough evaluation before any approval.
“Project of this magnitude must therefore be carefully evaluated to ensure that they align with national priorities, are technically sound, financially viable and fully compliant with Nigeria’s legal and regulatory frameworks,” Akume stated.
The SGF said the Office of the Secretary to the Government of the Federation had received inputs from security, financial intelligence and regulatory agencies, necessitating a coordinated technical review.
“In this regard, the Office of the Secretary of the Government of the Federation has received various correspondence and inputs from relevant institutions, including security, financial intelligence and regulatory agencies, concerning aspects of the proposal, particularly the financial support arrangements, participating entities and other related matters.
“These inputs underscore the need for a coordinated and thorough technical review before further steps are taken,” he added.
Akume explained that the committee was constituted to verify the financial claims of the promoters and assess the technical, legal and environmental components of the project.
“The terms of reference of this committee are… financial verification and proof of funds, coordinated multi-agency verification of all financial documents submitted… to validate the authenticity, sufficiency, source and conditions for drawdown of proposed funds,” he said.
He added that the committee would also review the financing model and evaluate the competence of the proposed technical partners.
The SGF further said the committee would assess regulatory compliance, security risks and governance arrangements for the proposed public-private partnership.
“Consolidate observations from security and financial intelligence agencies… to identify potential national security, financial crime and reputational risk, and recommend mitigation measures and conditionalities for project advancement,” he said.
Akume further stated that the panel was expected to provide objective, evidence-based recommendations to guide government decision-making on the project.
“In summary, the committee is to carefully examine all relevant documentation, verify claims made by project proponents, review the technical, financial, legal and environmental aspects of the proposal and provide objective evidence-based recommendations to guide government decision-making,” Akume said.
He added that the committee’s report would assist the Federal Government in determining the credibility and feasibility of the proposed rail network.
“Your work should, therefore, provide a comprehensive assessment that will assist the government in determining the credibility, feasibility and overall national interest implications of the project,” he stated.
The proposed project involves the development of an integrated gas-powered high-speed rail network spanning about 4,000 kilometres across major economic corridors, including Lagos, Abuja, Port Harcourt and other cities.
Estimated at $200bn, the multi-phase initiative is expected to combine gas development, power generation and transmission with rail infrastructure to boost transportation, energy supply and industrial growth.
