SPOTTED: N400bn funding for new rail projects in Kano, Kaduna, Lagos, Ogun in 2025 budget

The 2025 budget passed by the national assembly has a new expenditure component: N400 billion for light rail projects.

An analysis by TheCable shows that the sum was allocated to “light rail projects” in Lagos, Ogun, Kaduna and Kano states.

It is unclear how the expenditure item entered the budget as it was not in the N49.74 trillion appropriation bill President Bola Tinubu initially presented to a joint session of the senate and house of representatives on December 18, 2024.

On February 5, he sought an upward adjustment of N4.53 trillion, raising the proposal to N54.27 trillion.

By the time lawmakers approved the budget, they added another N719.5 billion, pushing the total to N54.99 trillion.

One notable addition to the national assembly’s version is N400 billion allocation to the new light rail projects in four states.

Light rail is a transit system designed for shorter, more frequent trips within a city or state, carrying a lighter passenger load compared to heavier rail systems like commuter or intercity trains.

Given the nature of light rail systems, their financing and construction are typically the responsibility of state governments.

However, in the final approved budget, lawmakers allocated N150 billion for Kano, N100 billion each for Ogun and Kaduna, and N50 billion for Lagos to fund the rail projects.

TWO ZONES TO BENEFIT

It is not clear if it is a loan or a grant, but this is different from the the plan to transfer N146.14 billion to Ministry of Finance Incorporated (MOFI) as counterpart funding for the Lagos Green Line Metro Rail Phase 1 contained in the initial budget.

This brings the provision for rail projects in Lagos state alone to N196.14 billion in the 2025 budget.

It is unclear if the federal government will still extend the funding to other states.

There are complaints of bias and marginalisation, and the latest allocation appears to favour two states in the north-west (Kano, Kaduna) and two in the south-west (Lagos, Ogun).

Victor Umeh, senator representing Anambra central under the Labour Party, had condemned the exclusion of the south-east and adjoining zones from the newly approved federal rail projects.

On November 23, 2023, Umeh sponsored a motion—co-sponsored by 35 senators—calling for the construction of a standard gauge railway from Port Harcourt through Aba and Makurdi to Maiduguri.

However, the 2025 budget passed by the national assembly on Thursday made no provision for the project.

Concerned about the omission, Umeh raised a point of order, urging his colleagues to reconsider and include the Eastern rail line in the budget. However, his appeal was unsuccessful.

While Umeh was advocating for a separate railway project in the southeast, his concerns reflect a broader sentiment of exclusion and marginalization felt by some regions regarding federal infrastructure projects.