..N146.14bn for 68km VI, Lekki, Ajah rail project
…N17.3bn for Group Life Assurance cover for MDAs, others,
…N12.4bn to insure ‘sensitive assets’
By Charles Ebi
Federal Government, in the N49.74 trillion proposed 2025 budget, has allocated N41.49 billion specifically for rail infrastructure and modernization projects.
For the 2025 fiscal year, the Ministry of Transport will receive a total allocation of N256.73 billion to support its initiatives. Of this amount, N223.80 billion is earmarked for capital expenditure, with N30,986,636,237 designated for personnel costs and N1,940,798,202 for overheads.
This information was obtained from the 2025 copy of the Federal Government’s Final Budget Proposal, which outlines plans for extensive infrastructure development.
Key rail-related projects under this allocation include the completion of the Abuja-Kaduna railway project, the Lagos-Ibadan rail line, and associated additional works, with specific funding indicated for each.
The budget also provides for the rehabilitation of the Itakpe-Ajaokuta rail line, the construction of 12 station buildings, and track-laying works at railway ancillary facilities in Agbor.
Furthermore, funds have been earmarked for the design, manufacture, supply, and installation of rolling stock, spare parts, and maintenance equipment for ongoing railway modernization projects.
Another significant component is the installation of a signal and telecommunication system on the Itakpe-Ajaokuta-Warri railway line, alongside the installation of an acoustic sensing security surveillance system for the Abuja, Idu-Kaduna route and other security gadgets, with individual allocations for each.
The 2025 budget also prioritizes the completion of feasibility studies for new standard gauge rail lines, the engagement of transaction advisors for the concession of the Abuja-Baro-Itakpe segment and the Kano-Maradi line, and the provision for railway modernization projects, each with specific budget allocations.
These are the projects for which the N41.49 billion will be used, highlighting the FG’s commitment to developing a robust rail network to enhance connectivity and economic growth.
With this allocation, the FG aims to address gaps in the country’s rail infrastructure, boost economic activities, and improve the efficiency of transportation systems nationwide.
The Federal Government’s rail projects have shown strong growth in passenger numbers and revenue generation.
The latest National Bureau of Statistics, NBS, report indicates a 25.05% increase in passenger numbers year-on-year for Q3 2024, with 743,205 passengers compared to 594,348 in Q3 2023. This growth was reflected in revenue, which reached N1.70 billion in Q3 2024, up 13.83% from N1.49 billion in the same period last year.
Earlier in the year, passenger numbers and revenue also increased, with Q1 2024 seeing 675,293 passengers and N1.42 billion in revenue, and Q2 2024 recording 689,263 passengers and N1.69 billion in revenue.
On the freight side, rail cargo volume grew by 39.7%, reaching 96,401 tons in Q3 2024, up from 69,003 tons in Q3 2023.
Revenue from cargo transport surged by 89.6%, totaling N412.57 million, though this was lower than the N607.31 million recorded in Q1 2024.
However, pipeline transport saw a decline, with volumes falling by 43.5% to 7,320 tons, and revenue from pipeline operations dropping to N51.85 million.
in the same vein, N146.14 billion has been allocated as counterpart funding for the Lagos Green Line Metro Rail Project, a 68km rail network that will stretch from the Lekki Free Zone to the Marina, connecting key areas of Lagos, including Victoria Island, VI, Lekki, and Ajah.
This funding will be transferred to the Ministry of Finance Incorporated, MOFI, which will handle the counterpart funding on behalf of the Ministry of Transport for the development of the project.
This allocation is part of the proposed N49.74 trillion budget for the 2025 fiscal year and falls under the Ministry of Transport’s total allocation of N256.73 billion to support its initiatives.
This information was obtained from the 2025 copy of the Federal Government’s Final Budget Proposal, which outlines plans for extensive infrastructure development.
AljazirahNigeria reported in September 2024 that the Lagos State Government formalized an agreement with the Ministry of Finance Incorporated, MOFI, and China Harbour Engineering Company, CHEC, for the development of the Green Line.
Under this agreement, MOFI and CHEC will be responsible for overseeing the design, financing, and operation of the project, marking a significant step forward in transforming Lagos’ public transportation system.
The 68km Green Line, intended to run from the Lekki Free Trade Zone to Marina, is a central component of the Lagos Strategic Transport Master Plan, which aims to establish a comprehensive metro rail system with six Light Rail Transit ,LRT, lines.
The Blue Line, a 27km rail line, forms part of the Lagos Rail Mass Transit, LRMT, system. Its first phase, covering 13km from Lagos Marina to Mile 2, was completed in 2023 and began commercial operations in September, transporting around 2 million passengers since its launch.
The Red Line, a 37km rail project, connects Agbado in Ogun State to Oyingbo in Lagos. The first phase, spanning 27km, features eight strategically located stations: Agbado, Iju, Agege, Ikeja, Oshodi, Mushin, Yaba, and Oyingbo. Once fully operational, the Red Line is projected to run 20 trips daily, carrying approximately 500,000 passengers.
Other proposed lines include the 85.7km Purple Line (connecting Redemption Camp to Ojo), the 48km Orange Line (from Ikeja CBD to Agbowa), and the Yellow Line.
These lines are all part of the city’s ambitious plan to address its transportation challenges. Together, these rail lines are designed to offer modern, sustainable, and efficient transit solutions, providing a reliable alternative to Lagos’ often congested road networks.
Meanwhile, the sum of N17.3 billion has been earmarked for the provision of Group Life assurance for employees of Ministries, Departments, and Agencies (MDAs), as well as members of the National Youth Service Corps, NYSC’.
The allocation includes expenses for administration and monitoring to ensure effective implementation.
Group Life Assurance, a mandatory policy in Nigeria under the Pension Reform Act 2014, requires employers in the public and private sectors to provide a minimum of three times an employee’s annual salary as a death benefit in case of an untimely demise.
This initiative demonstrates the Federal Government’s commitment to the welfare of its workforce, offering a financial cushion for beneficiaries of deceased employees.
The allocation will cover staff across MDAs, including critical security agencies like the Department of State Services, DSS, and other public institutions. In addition, the policy extends its benefits to NYSC members, demonstrating the government’s acknowledgment of their contributions to national development.
The N17.3 billion allocated will not only fund the life assurance policies but also cater to administrative and monitoring costs associated with its management. The inclusion of these costs suggests the government’s intent to ensure transparency and efficiency in the disbursement and application of the funds.
In 2024, the federal government approved N9.6 billion to insure life of its workers.
According to the Minister of Information and National Orientation, Mohammed Idris, the President approved about N9.6 billion for 12 local insurance firms to cover the federal workers in case of unforeseen eventualities in the course of their duties.
He said it was a normal annual cover that insurance companies give to workers. So, in the event of death or severe injury, they can resort to it so that their families would not have to suffer.
“There are about 12 insurance companies involved. It’s a normal annual cover that insurance companies give workers. So, in the event of death or severe injury, they can resort to it so that their families would not have to suffer,’’ he said.
According to the Office of the Head of the Civil Service of the Federation ,OHCSF, the Federal Government appointed Insurance Companies and Brokers to provide insurance coverage to Federal Government employees from 9th February 2023 to 8th February 2024.
The Government has also allocated N12,420,122,743 in the proposed 2025 budget for the insurance of sensitive assets, marking a significant step toward protecting critical infrastructure and resources amid escalating risks.
This allocation, highlighted in the budget submitted to the National Assembly in December, is designed to provide financial coverage for key government properties, facilities, and systems that are deemed vital to the nation’s operational stability.
These assets include essential infrastructure, IT systems, and other strategically significant resources, many of which face potential threats ranging from natural disasters to vandalism and cyber-attacks.
President Bola Tinubu on December 18, 2024 presented the “Budget of Restoration” during a joint session of the National Assembly in Abuja.
The budget allocates significant funding to other critical sectors, including infrastructure (N4.06 trillion), education (N3.52 trillion), and health (N2.48 trillion).
One of the most sensitive and critical assets identified for urgent intervention, analysts suggest, is the national grid.
Nigeria’s power sector faced severe challenges in 2024, including a staggering 12 national grid collapses and the destruction of 128 transmission towers, a situation that exposes the fragile state of the nation’s energy infrastructure.
The Minister of Power, Chief Adebayo Adelabu, clarified that the widespread blackouts experienced during the year were not solely the result of grid collapses but were largely due to sabotage and vandalism of key power infrastructure under his ministry’s jurisdiction.
He emphasized the deliberate and malicious actions that have undermined efforts to ensure stable electricity supply across the country, further complicating the sector’s challenges.
Speaking before the Senate Committee on Power at the National Assembly in Abuja in November, Chief Adelabu outlined the ministry’s response strategy to address the crisis.
This includes intensifying security measures to protect transmission towers and other critical assets, engaging with local communities to discourage vandalism, and advancing reforms aimed at strengthening the resilience of the power grid.
The Minister also appealed for legislative support to fast-track the enactment of stricter penalties for vandalism and to allocate additional funding for infrastructure repairs and modernization. He reiterated the government’s commitment to improving power reliability and acknowledged the significant economic and social disruptions caused by persistent outages.
The federal government has earmarked a substantial N845,284,513,819 in the 2025 budget to address the financial implications of the recently approved minimum wage increase to N70,000.
This significant allocation emphasises the administration’s commitment to improving the welfare of civil servants and alleviating the economic pressures faced by the Nigerian workforce amid rising costs of living.
This provision is included as part of the Service-Wide Vote within the 2025 budget, which President Bola Ahmed Tinubu presented to the National Assembly on Wednesday.
The allocation aims to support the smooth implementation of the new wage structure across all sectors of the public service. It also reflects the government’s acknowledgment of the critical role civil servants play in driving national development and economic stability.
Beyond the minimum wage adjustment, the 2025 budget emphasizes several other priority areas requiring substantial funding. These include investments in infrastructure development, healthcare, education, and initiatives aimed at fostering economic growth and job creation.
