Nigerian bullet train project backed by Asian investors

Momentum is building for the launch of a long-anticipated bullet train project in Nigeria, backed by Asian investors and more than a decade in the making. The proposed three-phase scheme aims to build a 4,000km high-speed rail network connecting much of the country. The Nigerian government has already granted 90% approval for the project, signalling significant steps towards commencement.

The first phase, with an estimated cost of US$55bn, will span approximately 1,700km. It will link Lagos, the commercial capital in the south-west, to Kano in the north via Abuja, the federal capital, and extend from Abuja to Port Harcourt, the oil industry hub. Construction is expected to take three years.

The project is being developed by Nigerian firm De-Sadel and China Liancai Petroleum Investment Holdings. The partners recently presented US$60bn in proof-of-funds to the government for the launch of the first phase – a statutory requirement for projects of this scale. Multiple media reports have said financing is being provided by the Asian Development Investment Bank, though it is unclear whether this refers to the Asian Infrastructure Investment Bank or the Asian Development Bank.

To support the rail network’s energy needs, the project will also include a natural gas development component to tap into Nigeria’s 210tr cubic feet of proven reserves.

Nigeria’s rail infrastructure remains severely underdeveloped, limiting the efficient movement of people and goods. McKinsey estimates the country must invest up to US$839bn in infrastructure by 2030 – particularly in power and transport – to realise its economic potential. This shortfall is estimated to reduce GDP growth by as much as 4% annually.

The bullet train scheme is one of several rail projects, most backed by Chinese financing and contractors, aimed at upgrading Nigeria’s network. The 157km standard gauge line from Lagos to Ibadan, Nigeria’s third-largest city and a key commercial hub, has in recent years started carrying both passengers and freight. The US$1.5bn project was built by China Civil Engineering Construction Corporation. The company has also constructed the first phase of a new light-rail system in Lagos, now operational and giving commuters a faster and cheaper alternative to the city’s congested roads. In addition, China Development Bank earlier this year released a US$255m loan to finance a railway linking the northern states of Kano and Kaduna.

References

‘First Lagos-Ibadan container train sets off from Apapa port’, The Cable, 03 November 2023

Back to growth: Priority agenda for the economic revival of Nigeria', NTU-SBF Centre for African Studies, 27 November 2023

‘China Development Bank releases $255 mln for Nigeria rail project’, CNBC Africa, 08 January 2025

'Five rail transport projects that can shape Nigeria’s economy', Business Day, 24 March 2025

'FG, firms to build $60bn high-speed rail in Nigeria', Punch Nigeria, 12 August 2025

'African $60 billion high-speed rail project takes shape', Newsweek, 13 August 2025

'FG, 2 firms set to construct $60bn speed rail in Nigeria', Business Day, 13 August 2025

'FG, Chinese partners to revitalise high-speed rail network across Nigeria', The Secretary To The Government Of The Federation, 13 August 2025

'Linked post', Desadel Consortium, August 2025

'Nigeria’s China-funded bullet train plans move forward', Semafor Africa, 15 August 2025