WorldStage Newsonline– Hope for the construction of a Gas and 4000km high speed rail project in Nigeria has been boosted as two entities, De-Sadal Nigeria Limited and China Liancai Petroleum Investment Holdings Limited submitted $60 billion proof of funds for the project to the Secretary to the Government of the Federation (SGF), Sen. George Akume.
The Chief Executive Officer of the De-Sadal Consortium, Samuel Uko said the fund would be from Asian Development Investment Bank.
The proof of fund document was presented to the Secretary to the Government of the Federation (SGF), Sen. George Akume, and the first phase of the rail line will connect Lagos, Abuja, Kano, and Port Harcourt.
The consortium CEO, Samuel Uko, mentioned that $55 billion of the total is allocated for the first phase, which covers 1,600 kilometers and is projected to be built within 36 months.
Uko said: “The project is structured in phases so that parts of the network become operational progressively, enhancing transportation and economic growth in Nigeria.
“A key component of the project includes developing gas infrastructure to power the high-speed rail, emphasizing the interdependence of gas supply and rail transport.”
However, the SGF stated that the submitted proof of funds would undergo critical international scrutiny to ensure the viability, reliability, and credibility of the investment and partnership, highlighting the due diligence process before the project advances.
“Given the scale and cost of the project, while the announcement and proof of funds submission represent a significant step, realistic considerations involve rigorous evaluation of the financial backing, technical feasibility, regulatory approvals, and previous infrastructure project challenges in Nigeria,” the SGF stated.
According to him, large-scale infrastructure projects in Nigeria traditionally face complexities such as funding assurance, execution capacity, and political-economic stability.
Acknowledging the project as ambitious and potentially transformative, he said it would require thorough vetting and sustained commitment from all stakeholders, including the federal government, financial partners, and technical consortiums, before it can move from proposal to reality.
“The ongoing scrutiny by Nigerian authorities marks a cautious but positive approach to realizing such a large infrastructure investment in the country’s railway and gas sectors,” he further stated.
