The Federal Government has proposed to allocate ₦102.3 billion as counterpart funding for the Lagos Green Line rail project in the 2026 budget. This proposal is contained in the 2026 Appropriation Bill submitted to the National Assembly under the Ministry of Transportation.
The Lagos Green Line is one of the major rail projects planned to improve public transport in Lagos State. The proposed funding shows that the Federal Government remains committed to supporting rail development in the country, especially in Lagos, Nigeria’s commercial centre and most populous state.
According to details in the 2026 Appropriation Bill, the ₦102.3 billion allocation is meant for Phase One of the Lagos Green Line Metro Rail project. The same project received ₦146.14 billion as counterpart funding in the 2025 budget proposal, indicating continued federal involvement, even though the amount proposed for 2026 is lower.
The funds are expected to be transferred to the Ministry of Finance Incorporated (MOFI). MOFI is responsible for managing the Federal Government’s equity participation, counterpart funding, and structured financing for large infrastructure projects across the country. This funding method suggests that the Green Line project will continue to rely on partnerships between the Federal Government, Lagos State Government, and other financiers, including possible private sector investors.
The Lagos Green Line rail project is designed as a 68-kilometre rail network that will run from the Lekki Free Zone to Marina. When completed, it is expected to connect major areas of Lagos such as Victoria Island, Lekki, Ajah, Sangotedo, and parts of Epe. These areas are among the fastest-growing parts of the state, with heavy traffic congestion during peak hours.
The Green Line is part of Lagos State’s wider rail master plan, which includes other lines such as the Blue Line and Red Line. While the Blue Line has already begun operations and the Red Line is progressing, the Green Line is still in the planning and financing stage.
Information from the budget documents shows that the Federal Government plans to spend the proposed ₦102.3 billion specifically on the first phase of the project. This phase is expected to cover the stretch from the Lekki First Tollgate towards Epe. The second phase will extend the line from Marina and is expected to include an on-water segment, which will be a major engineering feature.
In addition to the Green Line funding, the 2026 budget also makes provision for other rail-related projects across the country. One of these is a proposed ₦68.5 billion allocation for consultancy services related to the Lekki–Ijebu Ode–Ore–Kajola railway and the coastal railway corridor linking Badagry, Apapa, and Tin Can ports.
This consultancy funding, listed under project code ERGP13247529, is meant to cover planning, design, and advisory services. These services are necessary before construction can begin, especially for complex rail corridors that pass through busy urban and coastal areas.
The 2026 budget proposal also includes ₦29.04 billion under another project code for ongoing and planned railway modernisation projects nationwide. This allocation covers several key rail lines that are already under construction or undergoing upgrades.
Some of the projects listed under this budget line include the completion of the Abuja–Kaduna railway, additional works on the Lagos–Ibadan rail line, and the rehabilitation of the Itakpe–Ajaokuta rail corridor. The budget also provides for the construction of 12 station buildings and track-laying works at supporting rail facilities in Agbor.
Further details show that the same allocation will be used for the design, manufacture, and installation of rolling stock, as well as the supply of spare parts and maintenance equipment. This is important for keeping trains in good working condition and improving safety and reliability.
The budget also includes funding for signalling and telecommunications systems on the Itakpe–Ajaokuta–Warri rail line. In addition, there is provision for the deployment of acoustic sensing security surveillance systems on the Abuja–Kaduna rail corridor, which has faced security challenges in the past.
Another part of the rail budget covers feasibility studies for new standard-gauge rail lines and the engagement of transaction advisers. These advisers will help with plans to concession rail projects such as the Abuja–Baro–Itakpe line, the Aladja–Warri Port rail link, and the Kano–Maradi railway.
The Lagos Green Line itself is estimated to cost about $3 billion and is expected to be around 70 kilometres long when fully completed. Plans show that the line will have about 17 stations, with a mix of elevated tracks and tracks built at ground level.
The stations are expected to have modern facilities, including pedestrian bridges, elevators, escalators, and proper waiting areas. A major depot is also planned near Sangotedo to handle train storage and maintenance.
According to earlier project timelines, construction of the Green Line was expected to begin in December 2025 after feasibility studies and consultations with communities along the Lekki-Epe corridor. However, as of January 11, 2026, construction had not yet started, although officials say planning and coordination are still ongoing.
When completed, trains on the Green Line are expected to operate in eight-car sets and reach speeds of up to 100 kilometres per hour. The system is designed to carry up to 35,000 passengers per hour in each direction, with trains running as frequently as every three minutes during peak periods.
Despite the ambitious plans, some experts have raised concerns about the project design. Issues such as wide gaps between stations, especially in Victoria Island and along parts of Lekki, could affect passenger numbers. Experts have suggested adding more stations in busy areas and ensuring smooth connections with existing rail lines to improve usage and efficiency.
Still, the continued inclusion of the Green Line in federal budgets shows that the project remains a priority. The ₦146.14 billion allocated in the 2025 budget and the proposed ₦102.3 billion in the 2026 budget point to sustained federal support while final arrangements for construction are being completed.
