Federal Government Allocates N33.1bn to Advance Railway Projects in 2024 Budget

 

The federal government has earmarked N33.1 billion in the 2024 budget for various railway projects. The allocation, part of the Ministry of Transportation’s budget, encompasses a range of initiatives to advance the country’s rail network, as outlined in the budget document ERGP 13177707.

The projects covered by the allocated funds include the completion of the Abuja-Kaduna and Lagos-Ibadan routes, rehabilitation of the Itakpe-Ajaokuta rail line, construction of station buildings, tracks laying works at railway ancillary facilities in Agbor, and the implementation of several ancillary facilities.

Among the highlighted projects are the design, manufacture, supply, and installation of rolling stock, supply of spare parts, and maintenance equipment for the ongoing railway modernization project. Additionally, the installation of signal and telecommunication systems on the Itakpe-Ajaokuta-Warri railway line and the deployment of an acoustal sensing security surveillance system for the Abuja (Idu)-Kaduna railway system are part of the planned initiatives.

However, the allocated N33 billion, while a substantial investment, is considered modest in the face of the backlog of existing projects, some of which are yet to commence. Various railway projects across the country, totaling over $21.3 billion (approximately N16 trillion), face delays due to inadequate funding.

These projects include the Ibadan-Kano Standard Gauge Railway ($5.3 billion), the Lagos-Calabar coastal railway project ($11.17 billion), the rehabilitation of the Eastern Line (Port Harcourt-Maiduguri) with a budget of $3.02 billion, and the Kano-Maradi Railway project amounting to $1.9 billion. These initiatives, outlined in the 25-year railway roadmap initiated during the administration of former President Olusegun Obasanjo, are crucial for the country’s infrastructural development.

Despite the funding challenges, the federal government has made provisions for new projects, allocating N1 billion for endeavors such as the Lekki – Ijebu Ode Rail & Coastal Rail Lekki – Apapa/Tin-Can and Badagry – Apapa/Tin-Can. An additional N1.5 billion has been set aside for railway modernization.

Under a separate budget, the Nigerian Railway Corporation (NRC) plans to spend N1.5 billion on the procurement and rehabilitation of locomotives and rolling stock for the standard gauge, with another N2.7 billion allocated for the procurement/rehabilitation of rolling stock (narrow gauge). The rehabilitation of a narrow gauge track from Minna to Barrow, with an extension to the Baro River Port, is also included in the outlined initiatives.