FG sets up panel to review $200bn high-speed rail project

The Federal Government on Thursday inaugurated an inter-agency committee to assess the feasibility of a proposed $200bn gas-powered high-speed rail project spanning about 4,000 kilometres across the country.

Secretary to the Government of the Federation, George Akume, who inaugurated the panel in Abuja, said the committee would evaluate the credibility of the proposal submitted by a consortium led by De-Sadel Nigeria Limited in partnership with China Liancai Petroleum Investment Holdings Limited.

He said the project, which cuts across major economic corridors including Lagos, Abuja, Kano and Port Harcourt, is designed as a multi-phase programme integrating rail infrastructure with gas development, power generation and transmission.

Akume, however, stressed that the proposal must undergo thorough scrutiny before any approval is granted

He explained that the proposed project is a “construction of a 4,000-kilometre high-speed rail network connecting major economic corridors of the country, including Lagos, Abuja, Kano, and Port Harcourt.”

“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 added.

He disclosed that the Office of the Secretary to the Government of the Federation had received inputs from security, financial intelligence and regulatory agencies, raising the need for a coordinated review of the project.

According to him, the committee will verify the financial claims of the promoters, including proof of funds, and assess the technical, legal and environmental components of the proposal.

He added that the panel would also examine the financing model, competence of technical partners, regulatory compliance, and potential security and financial risks associated with 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 stated.

The SGF 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.

He noted that the panel is expected to submit an objective, evidence-based report to guide the Federal Government’s decision on the project.