FG sets up panel to vet $200bn high-speed rail project
The federal government has set up a high-level panel to scrutinise a proposed $200 billion high-speed rail and integrated power and gas project, with the Secretary to the Government of
The federal government has set up a high-level panel to scrutinise a proposed $200 billion high-speed rail and integrated power and gas project, with the Secretary to the Government of the Federation, George Akume, saying the initiative is “too large and too important” to be rushed without thorough evaluation.
The project, proposed by De Sadel (Nig.) Limited consortium in partnership with China Liancai Petroleum Investment Holdings Limited is currently undergoing technical, financial, and regulatory review before any commitment is made by the government.
Akume said the decision to constitute the panel was driven by the need to ensure that the ambitious project meets all requirements.
He said, “This project is too large and too important to be rushed. While it has the potential to transform our infrastructure and even energy landscape, it must be carefully evaluated.”
The SGF added that the government would not compromise due diligence, noting that large-scale infrastructure projects must align with national priorities and long-term sustainability goals.
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According to him, “We must ensure that whatever we embark upon is technically sound, financially viable, and fully compliant with our laws and regulations. The national interest must guide every step of this process.”
He emphasised the need for a coordinated technical review, noting that the Office of the Secretary to the Government of the Federation had already received inputs from security, financial intelligence, and regulatory agencies on the consortium’s financial plans and the profile of its partners, including China Railway Group Limited and China Railway Engineering Corporation.
Akume said the multi-agency committee is chaired by the Permanent Secretary, Political and Economic Affairs Office, OSGF, and comprises representatives from the Federal Ministries of Transportation, Petroleum Resources, Finance, Justice, and Environment.
Other members include officials from the Central Bank of Nigeria, Nigeria Financial Intelligence Unit, Economic and Financial Crimes Commission, National Intelligence Agency, Office of the National Security Adviser, and the Debt Management Office, among others.
He said the committee has been mandated to verify proof of funds, assess financial, sovereign, and contingent liability risks, and review the integrated oil and gas rail financing model, including any proposed asset divestments.
“The committee is expected to carry out a thorough and independent assessment. It must verify the credibility of the promoters, confirm funding sources, evaluate risks, and provide us with clear recommendations that will guide the government’s decision,” he said.
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Akume added that members have also been directed to conduct technical and engineering, procurement, and construction due diligence on China Liancai Petroleum Investment Holdings Limited and its partners, while ensuring compliance with Public Private Partnership guidelines, including risk allocation, environmental and social safeguards, and resettlement issues.
Managing Director and Chief Executive Officer of De Sadel Nigeria Limited, Samuel Ukoh, described the project as a transformative initiative that would redefine infrastructure development in Nigeria.
“This project is a new foundation for infrastructure in Nigeria. It integrates rail, power, and gas to drive economic growth and national development.”
Ukoh said the proposed network would span about 4,000 kilometres, linking major economic centres across the country.
According to him, the first phase of the project will cover a 1,700-kilometre corridor connecting Lagos, Abuja, Kano, and Port Harcourt, traversing more than 20 states.
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He said trains would operate at speeds of up to 350 kilometres per hour, significantly reducing travel time across key routes.
“Travel time from Lagos to Abuja will be about two hours and 30 minutes. Kaduna to Abuja will take less than 30 minutes, Enugu to Abuja about 35 to 40 minutes, and Benue to Abuja under 30 minutes.”
He added that the project would ease pressure on existing transport infrastructure, boost industrialisation, and position Nigeria as a regional logistics hub.
“This system will significantly improve connectivity, reduce travel time, and enhance economic productivity across the country,” he said.
