LAMATA, AfDB Begin Funding Talks for Lagos Green Line Rail Project

 

The Lagos Metropolitan Area Transport Authority (LAMATA) has commenced an appraisal process with the African Development Bank (AfDB) to secure funding for the Lagos Rail Mass Transit (LRMT) Green Line project.

The appraisal follows a stakeholder meeting jointly organised by LAMATA and the Ministry of Finance Incorporated (MOFI), marking the formal launch of the AfDB’s assessment of the multibillion-dollar rail project.

According to an official statement issued on Friday, the appraisal mission will evaluate the project’s commercial readiness, environmental and social impact, institutional capacity and overall viability before the bank makes a final decision on the proposed financing.

The review is considered a key step in securing the funding needed to move the project forward.

The stakeholder meeting, held at the Lagos Oriental Hotel, Victoria Island, brought together representatives of the AfDB, MOFI, the Lagos State Government and private sector partners involved in the project.

Although the appraisal covers the entire rail corridor, particular attention is being given to Phase 1A, which will run from Lekki First Toll Gate to Sangotedo. The first phase is expected to ease traffic congestion, reduce travel time and support economic activities along the rapidly growing Lekki-Epe corridor.

Project officials presented the proposed rail alignment, implementation strategy and plans for land acquisition, compensation for affected property owners and traffic management during construction.

Community leaders, traditional rulers and residents also participated in the meeting, raising questions and concerns about the project’s impact on their communities.

In response, LAMATA assured stakeholders that the Green Line project would comply with international environmental and social safeguard standards while maintaining continuous engagement with affected communities throughout its implementation.

Urban planning and transport experts, however, urged project planners to address concerns over station locations and future passenger demand.

Transport researcher Tonami Playman warned that providing only one station on Victoria Island could limit accessibility and reduce passenger patronage. He also recommended increasing train capacity from the proposed eight-car configuration to 10-car trains to meet future demand along the Lekki corridor.

Similarly, Hannah Kates, Head of Open Data at Stears and a former urban planner with the New York City Department of City Planning, said the proposed Civic Centre station is too far from Victoria Island’s major commercial and residential districts, which could discourage commuters from using the rail system.

Experts noted that while adding more stations and improving network integration may increase construction costs, such measures would improve the railway’s long-term efficiency and passenger capacity.

The Lagos Green Line is a 70-kilometre rail corridor with 17 planned stations, linking Marina, Victoria Island, Lekki, Ajah, Sangotedo, Ibeju and the Lekki Free Trade Zone.

The rail system is designed to operate at speeds of up to 100 kilometres per hour and transport about 35,000 passengers per hour in each direction. The project also includes a 23.4-hectare maintenance depot near Sangotedo and a 15-hectare parking facility at the Lekki Free Trade Zone.

Valued at about $3 billion, the Green Line is one of the largest infrastructure projects undertaken by the Lagos State Government.

The project has recorded significant progress in recent years. In September 2024, the Lagos State Government, MOFI and China Harbour Engineering Company (CHEC) signed an agreement to design, finance and operate the rail line, while a Memorandum of Understanding (MoU) in early 2025 paved the way for preliminary site works.

The Federal Executive Council (FEC) has also approved a $2.99 billion financing plan for Phase 1A, with the Federal Government providing counterpart funding of ₦146.14 billion in the 2025 budget and ₦102.3 billion in the 2026 budget to support the project.

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