Nigeria Targets 8,500MW Gas-Powered High-Speed Rail to Drive Economic Growth

The Federal Government has announced plans to develop a gas-powered high-speed rail system that will be supported by an 8,500 megawatt (MW) electricity generation project aimed at boosting industrial growth and job creation.

Minister of Transportation, Sa’id Ahmed Alkali, disclosed the initiative at the 2nd International Railway Conference in Abuja, stating that the project would generate about two million direct and indirect jobs. He said the rail network would enhance trade competitiveness, promote regional integration under the African Continental Free Trade Area (AfCFTA), and transform Nigeria’s logistics landscape.

According to the plan, 3,500MW of the power generated will be dedicated to running the rail system, while the remaining 5,000MW will supply electricity to coastal cities and industrial clusters along major routes in Lagos, Abuja, Port Harcourt, and Kano.

A member of the consortium, Samuel Uko of De-Sadel Nigeria Limited, explained that the project is designed to be financially self-sustaining, with a repayment period of five to ten years, provided it attracts sufficient ridership. He added that the system would position Nigeria as a logistics hub for West and Central Africa.

Vice President Kashim Shettima, who represented President Bola Tinubu at the conference, described the plan as a cornerstone for industrialization. He said the project would connect farmers to markets, supply raw materials to factories, and expand economic opportunities for citizens.

The government also highlighted financing models such as public-private partnerships, concessions, and land value capture, alongside investments in local manpower development through institutions like the Federal University of Transportation, Daura, and the Nigerian Institute of Transport Technology, Zaria.

By Oshuniran Sheriff Ola