Tinubu’s 2025 Budget Earmarks ₦400 Billion For Light Rail Projects

An analysis report has indicated that ₦400 billion for light rail projects was added to the 2025 budget passed by the National Assembly.

According to the report by The Cable, the sum was allocated to “light rail projects” in Lagos, Ogun, Kaduna and Kano states.

It is unclear how the expenditure item entered the budget as it was not in the ₦49.74 trillion appropriation bill President Bola Tinubu initially presented to a joint session of the Senate and House of Representatives on December 18, 2024.

The President, on February 5, sought an upward adjustment of ₦4.53 trillion, raising the proposal to ₦54.27 trillion.

By the time lawmakers approved the budget, they added another ₦719.5 billion, pushing the total to ₦54.99 trillion.

One notable addition to the National Assembly’s version is ₦400 billion allocation to the new light rail projects in four states.

Light rail is a transit system designed for shorter, more frequent trips within a city or state, carrying a lighter passenger load compared to heavier rail systems like commuter or intercity trains.

Given the nature of light rail systems, their financing and construction are typically the responsibility of state governments.

However, in the final approved budget, lawmakers allocated ₦150 billion for Kano, N100 billion each for Ogun and Kaduna, and ₦50 billion for Lagos to fund the rail projects.

It is not clear if it is a loan or a grant, but this is different from the plan to transfer ₦146.14 billion to the 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 ₦196.14 billion in the 2025 budget.