Four states get FG N400bn funding for light rail projects

Four states get FG N400bn funding for light rail projects

Four states have been allocated a total sum of N400bn in the 2025 national budget for light rail projects to improve transportation system and by extension the economy.

The N400 billion for the light rail was allocated to projects in Lagos, Ogun, Kaduna and Kano states.
The National Assembly last week Thursday passed N54.99 trillion 2025 Appropriation Bill.
The N400bn, newstrends.ng learnt, was not part of N54.2 trillion revised proposal that President Bola Tinubu presented to the assembly two weeks ago, seeking approval from the Senate and the House of Representatives.
The N400 billion for the light rail is obviously an addition by the lawmakers.
On February 5, President Tinubu sought an addition of N4.53 trillion to the budget, raising the proposal from N49.7 trillion to N54.27 trillion.
By the time the lawmakers approved the budget pushing the total to N54.99 trillion, N400 billion allocation to the new light rail projects in four states had been added.
Financing and construction of light rail systems are typically the responsibility of state governments.
It is not clear if the FG funds for the light rail is a support grant or loan to the four states.
In the final approved budget, lawmakers allocated N150 billion to Kano, N100 billion each to Ogun and Kaduna, and N50 billion to Lagos for the rail projects.
The amount is said to be 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.