FG Approves $2.99bn Rail Projects, Aircraft Leasing Company to Boost Infrastructure, Aviation Growth
The Federal Government has approved major transportation infrastructure initiatives valued at $2.99 billion, including the Lagos Green Line Rail Project and the establishment of a national aircraft leasing company, in a move aimed at accelerating Nigeria’s economic transformation through sustainable infrastructure financing.
Chief Executive Officer of the Ministry of Finance Incorporated (MOFI), Armstrong Takang, disclosed that the approvals reflect President Bola Ahmed Tinubu’s commitment to infrastructure-led economic development anchored on innovative financing models and public-private partnerships.
According to Takang, the Federal Executive Council (FEC) approved funding for the Lagos Green Line Rail Project (Phase 1A), the Kano Metro City Rail Project, and the Kaduna State Light Rail Project as part of efforts to modernise urban transportation and stimulate economic activities across the country.
He explained that the projects were selected based on their strategic economic importance and expected return on investment, noting that improved rail connectivity would enhance mobility, reduce transportation costs, and support urban expansion.
Takang also revealed that the Federal Government approved the establishment of a national aircraft leasing company designed to support domestic airlines with easier access to modern aircraft fleets on competitive terms.
He said the initiative would address longstanding challenges faced by Nigerian airlines in acquiring aircraft while positioning Nigeria as a regional hub for aviation financing in Africa.
According to him, the leasing company is expected to provide opportunities not only for Nigerian carriers but also for operators across West Africa and other parts of the continent.
Takang noted that MOFI would serve as the Federal Government’s strategic implementation vehicle for both initiatives.
He explained that the rail projects would be financed through a structure involving MOFI and counterpart financing arrangements in alignment with the Federal Government’s broader infrastructure development agenda.
On the aviation initiative, he stated that the Federal Government would hold equity and generate revenue through MOFI without direct financial investment, adding that government’s primary role would be to provide investor confidence and ensure asset security.
He described the arrangement as a tested public-private partnership model that guarantees sustainable financing, effective risk management, and development-driven project delivery.
Takang commended President Tinubu for advancing policies aimed at delivering modern infrastructure capable of driving long-term economic growth and national competitiveness.