The Federal Government has inaugurated a technical committee to evaluate a proposed $200 billion integrated gas, power and high-speed rail project submitted by De-Sadel Nigeria Limited.
The development was disclosed in a statement issued on Thursday by the Office of the Secretary to the Government of the Federation (SGF), which said the committee has been mandated to assess the feasibility and overall viability of the proposal before any final decision is taken.
According to the statement, the project is structured as a multi-phase infrastructure initiative that combines gas development, power generation and transmission, alongside the construction of a 4,000-kilometre high-speed rail network.
The proposed rail system will operate on a dual-track network connecting major economic centres, including Lagos, Abuja, Kano and Port Harcourt. It is expected to significantly reduce travel time between key cities and enhance national connectivity.
The SGF, George Akume, described the initiative as a potentially transformative project capable of strengthening Nigeria’s transport and energy infrastructure. He noted that the integrated nature of the proposal could boost industrial growth, improve energy security and promote national integration.
Similarly, the Managing Director and Chief Executive Officer of De-Sadel Nigeria Limited, Samuel Ukoh, said the project could reduce travel time across the country by up to 75% while serving as a backbone for mobility and economic development. He added that the network is designed to connect all 36 states and the Federal Capital Territory.
Beyond transportation, the proposal incorporates gas infrastructure and power generation to ensure sustainability and operational efficiency. It includes plans to generate approximately 3,500 megawatts of electricity to power the rail network and support surrounding industries.
The committee has been tasked with reviewing all submitted documentation, verifying technical and financial claims, and assessing the project’s legal and environmental implications. It is also expected to engage with relevant stakeholders and ensure alignment with international best practices in infrastructure development. Its findings will guide the Federal Government’s decision on whether to proceed with the project.
The review comes amid ongoing efforts by the government to expand Nigeria’s rail and transport infrastructure. In February 2025, the Federal Executive Council approved a $45.3 million contract for the feasibility study and engineering design of a rail line linking major western seaports to the hinterland.
In September 2025, the Federal Government secured about N250 billion for light rail projects in Kaduna and Kano states, although construction has yet to commence. Earlier, in November 2025, the Nigerian Railway Corporation announced plans to reactivate the Osogbo–Dagbolu–Erunmu and Idogo rail lines in the Southwest for freight operations.
In addition, the government has proposed N102.3 billion as counterpart funding for the Lagos Green Line rail project in the 2026 budget, though work on the project has not yet begun.
Data from the Nigerian Railway Corporation indicates that the rail sector recorded steady growth in 2025, reflecting increasing demand for transport services despite existing infrastructure challenges. A total of 3,888,661 passengers were conveyed during the year, generating N7.77 billion in revenue.
Quarterly performance showed mixed trends, with the second quarter recording the highest revenue of N2.28 billion from 989,793 passengers, while the third and fourth quarters experienced moderate declines in both ridership and revenue.
Freight operations also contributed significantly, with cargo volumes peaking at 210,570 tonnes in the second quarter before declining to 110,480 tonnes in the fourth quarter. Freight revenue followed a similar pattern, rising to N775.75 million in Q2 and falling to N397.82 million by Q4.
The proposed $200 billion project, if approved, is expected to play a critical role in addressing Nigeria’s infrastructure deficit while supporting long-term economic growth.
