FG Verifying Funding, Risks in $200bn Rail-Gas-Power Plan

The federal government has inaugurated a multi-agency technical committee to verify funding claims and assess potential risks in the proposed $200 billion Integrated Gas, Power and High-Speed Rail Project, insisting that the ambitious plan must undergo rigorous scrutiny before approval.
The government said the review is aimed at safeguarding national interests, ensuring financing credibility and protecting Nigeria from unseen liabilities tied to the mega infrastructure proposal.
The project, a flagship initiative under President Bola Tinubu’s Renewed Hope Agenda announced in August 2025, is designed to simultaneously boost energy supply, industrialise the gas sector and transform national transportation through a high-speed rail network.

It seeks to address Nigeria’s persistent power challenges by linking the country’s vast gas reserves—estimated at over 200 trillion cubic feet—to electricity generation and rail electrification, while also easing pressure on road networks by shifting freight and passenger traffic to rail systems expected to run at commercial speeds of between 200 and 250 kilometres per hour.

In his remarks at the inauguration on Thursday, Secretary to the Government of the Federation (SGF), George Akume, said the scale and strategic importance of the project make it imperative for government to proceed with caution.

He described the proposal by De-Sadel (Nig.) Limited consortium, in partnership with China Liancai Petroleum Investment Holdings Limited, as “too large and too important” to be rushed.

According to him, the estimated $200 billion project is conceived as a multi-phase programme integrating gas development, power generation and transmission, as well as the construction of a 4,000-kilometre high-speed rail network linking major economic corridors, including Lagos, Abuja, Kaduna, Kano and Port Harcourt.

“These kinds of projects have the potential to transform Nigeria’s transport infrastructure, strengthen energy security, stimulate industrial growth and deepen national integration,” Akume said. “But they must also be carefully evaluated to ensure they align with national priorities, are technically sound, financially viable, and fully compliant with Nigeria’s legal and regulatory frameworks.”

He disclosed that the Office of the Secretary to the Government of the Federation had already received inputs from security, financial intelligence and regulatory agencies regarding the consortium’s financial support arrangements and the profile of participating entities, prompting the need for a coordinated technical review.

The inter-agency committee, chaired by the Permanent Secretary, Political and Economic Affairs Office, OSGF, comprises representatives from the Federal Ministries of Transportation, Petroleum Resources, Finance, Justice and Environment, as well as key institutions including the Central Bank of Nigeria (CBN), Nigeria Financial Intelligence Unit (NFIU), Economic and Financial Crimes Commission (EFCC), National Intelligence Agency (NIA), Office of the National Security Adviser (ONSA) and the Debt Management Office (DMO), among others.

Its mandate includes verifying proof of funds, evaluating financial, sovereign and contingent-liability risks, and reviewing the integrated oil and gas–rail financing model, including any proposed divestment of oil and gas assets.

The committee is also expected to conduct due diligence on engineering, procurement and construction (EPC) arrangements involving China Liancai Petroleum Investment Holdings Limited and its proposed partners, China Railway Group Limited and China Railway Engineering Corporation.

In addition, members are to ensure compliance with Public-Private Partnership guidelines, particularly in areas of risk allocation, environmental and social safeguards, and resettlement considerations.

Akume urged members to approach their assignment with professionalism, objectivity and patriotism, noting that their recommendations would guide decisions at the highest level of government. He added that the committee would be required to submit its report within a timeline to be communicated by the Secretariat.

He stressed that the inauguration marks the beginning of a comprehensive review process, not its conclusion.

“The committee is expected to carefully examine all relevant documentation, verify claims made by the project proponents, review the technical, financial, legal and environmental aspects of the proposal, and provide objective, evidence-based recommendations,” he said.

Reiterating government’s position, the SGF said while infrastructure investment remains a catalyst for economic growth, it must be anchored on transparency, accountability and rigorous due diligence, particularly in large-scale, foreign-linked proposals.

Earlier, Managing Director and Chief Executive Officer of De-Sadel Nigeria Limited, Samuel Ukoh, presented an executive summary of the project, describing it as a transformative national infrastructure framework rather than a private commercial venture.

He said the first phase of the planned 4,000-kilometre rail network would cover a 1,700-kilometre corridor linking Lagos, Abuja, Kano and Port Harcourt, spanning more than 20 states.

Ukoh stated that trains on the corridor would run at speeds of up to 350 kilometres per hour, enabling travel times such as Lagos to Abuja in about two hours and 30 minutes, Kaduna to Abuja in less than 30 minutes, Enugu to Abuja in about 35 to 40 minutes, and Benue to Abuja in under 30 minutes.

He explained that the rail infrastructure would largely be constructed on elevated bridges to suit Nigeria’s terrain and weather conditions, adding that the same structures would also carry fibre-optic cables and power transmission lines, thereby integrating digital and energy infrastructure.

“We are looking at over two million jobs through this project. We are looking at boosting the power sector, boosting the gas sector, and all of that. The project benefits all of us in the world,” Ukoh said.

He emphasised that gas remains the backbone of the initiative, noting that reliable power generation and high-speed rail operations depend on increased gas supply.

“Nigeria is blessed with more than abundance of resources that the whole world is looking for, which is gas,” he said. “But the problem is not just having the gas; it is making it available.”

Ukoh added that existing gas output is already insufficient for current power needs, explaining that the consortium plans to invest alongside multinational oil companies to ramp up production rather than waiting years to develop new fields.

“In six months, we can increase production if we invest with the present multinational oil companies,” he said.

He further disclosed that the project had undergone several regulatory and approval processes over the past two years, including a conditional outline business case approval, gas availability certification, environmental assessment and issuance of letters of no objection.

According to him, outstanding issues include approvals for farm-in arrangements and operational licences, right-of-way approvals, a draft concession agreement, negotiations on an updated outline business case, and input from government legal advisers.

Ukoh said the consortium had already submitted proof of funds and a concession agreement to the Federal Government and recently concluded a final investment decision process in China.

“We are almost at 90 per cent completion of government systems, regulatory systems,” he added.