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Infrastructure Bank Coordinates Funding For $200bn Lagos Rail Project
The Infrastructure Bank Plc is to provide funds for the proposed 200 billion dollars Lagos Red Line Rail Project that will commute two million passengers daily from Alagbado to Marina.
The bank’s Executive Director (Projects), Mr Hakeem Olopade, disclosed this in Lagos on Thursday at the ongoing 3rd Economic Commission of West Africa States (ECOWAS) Investment Forum.
The Tide source reports that Infrastructure Bank Plc is the chief promoter and financier of the rail project.
The funds, to be coordinated by the Infrastructure Bank, will be sourced from the local and international markets.
Olopade said that the project had been in conception since five years ago and would be implemented by Marina Express Consortium to ease transportation in populated areas of Lagos.
According to him, the Red Line Rail project will stretch 37 kilometres with 36 pedestrian walk-over bridges to end at the Marina.
Olopade said that that the Red Line and the ongoing Blue Line Rail projects would converge on a “signature bridge” to link the mainland to the Marina.
He said that the bridge would cost 200 million dollars.
Olopade said that the Red Line Rail project might be extended to Ogun State in the future.
He said that the Red Line Rail project would be a two- type infrastructure which would cost one billion dollars each.
The executive director said that the bank, in implementing the project, would be responsible for the fixed infrastructure as well as the operation and maintenance.
Olopade said that the moving infrastructure would have a rail signal communication, among others.
Olopade said that one of the core objectives of the Red Line project was to provide a world class rail system.
He said that the bank would also ensure that there was constant improvement in the area of service delivery to the people of Lagos state.
The bank executive identified skill and training as paramount to the project and said that the bank was assembling a global team to implement the project.
“We also want to make sure that as we provide training and skill services, there is a clear system of transfer programme to ensure that within a short time, the rail would be run by Nigerians for Nigerians.
“We also have a corporate social responsibility, as core driver of the project, by creating one thousand direct jobs apart from the indirect jobs that would also be provided on the corridors, ‘’he said.
Olopade said that there would be signal that would be laid on the track corridor for free access to internet for school children.
“We are also conscious of school passengers and pensioners and there would be aggregate tariff for them to benefit from the rails service.”
He said that the project was part of the World Bank’s sponsored study for transport infrastructure and solution for Lagos.
“The BRT, which is the Bus Rapid Transport, also came out of that study.
“This railway project is part of the integrated mode of transportation from that study.
“There would be seven metro lines and the Red Line and Blue Line are the prototypes that Lagos State has agreed to commission as a starter.
“The Blue Line is already taken by the state. The Red Line is going to be a concession that would be run by the private sector,’’ Olopade said.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.