Infrastructure - Creator

FG Proposes N102.3 Billion for Lagos Green Line Rail in 2026 Budget

The Federal Government has proposed a total allocation of N102.3 billion as counterpart funding for the Lagos Green Line rail project in the 2026 fiscal year, reinforcing its commitment to expanding Nigeria’s urban rail infrastructure. The proposed allocation is contained in the 2026 Appropriation Bill under the Ministry of Transportation.

The Lagos Green Line is a major rail infrastructure project designed to improve mobility across key commercial and residential districts in Lagos. The proposed rail corridor spans approximately 68 kilometres, running from the Lekki Free Zone to Marina, and is expected to serve high-density areas such as Victoria Island, Lekki, Ajah, and Sangotedo.

According to budget details, the 2026 allocation is specifically targeted at Phase One of the Lagos Green Line Metro Rail project. The funds are to be transferred to the Ministry of Finance Incorporated (MOFI), an agency responsible for managing federal equity participation, counterpart funding, and structured financing arrangements for large-scale infrastructure developments.

The funding model indicates continued reliance on structured financing frameworks that are expected to involve collaboration between the Federal Government, the Lagos State Government, and other domestic or international financiers. This approach reflects the scale and capital-intensive nature of the Green Line project, which has been estimated to cost around $3 billion upon completion.

In comparison, the Federal Government proposed a higher counterpart funding of N146.14 billion for the same project in the 2025 budget, suggesting a recalibration of funding requirements as project planning progresses. Despite the reduction, the sustained allocation signals ongoing federal backing while implementation plans are being finalised.

Beyond the Lagos Green Line, the 2026 budget outlines additional investments across Nigeria’s rail sector. The Federal Government plans to spend N68.5 billion on consultancy services related to the proposed Lekki–Ijebu Ode–Ore–Kajola railway as well as the coastal rail corridor linking Badagry, Apapa, and Tin Can ports. These consultancy services are expected to cover feasibility assessments, design reviews, and project structuring activities.

The budget also earmarks N29.04 billion for various ongoing and planned railway modernisation projects nationwide. These include the completion of the Abuja–Kaduna railway, further development works on the Lagos–Ibadan rail line, and the rehabilitation of the Itakpe–Ajaokuta rail corridor. Additional provisions cover the construction of 12 railway station buildings and track-laying works at ancillary rail facilities in Agbor.

Further allocations under the same budget line include funding for the design, manufacture, and installation of rolling stock, alongside the supply of spare parts and maintenance equipment. The proposal also includes investments in signalling and telecommunications systems on the Itakpe–Ajaokuta–Warri rail line, as well as the deployment of acoustic sensing security surveillance systems on the Abuja–Kaduna corridor to enhance rail safety.

The 2026 budget additionally makes room for feasibility studies for new standard-gauge rail lines and the engagement of transaction advisers for the planned concession of major routes such as the Abuja–Baro–Itakpe, Aladja–Warri Port, and Kano–Maradi rail projects.

The Lagos Green Line itself is envisioned as a modern, high-capacity urban transit system featuring 17 stations along a mix of elevated and at-grade tracks. Planned amenities include pedestrian bridges, elevators, escalators, and a dedicated depot near Sangotedo. Trains are expected to operate in eight-car sets, reach speeds of up to 100 km/h, and move up to 35,000 passengers per hour per direction at peak capacity.

While construction was initially scheduled to begin in December 2025 following extensive feasibility studies and stakeholder consultations along the Lekki–Epe corridor, work had not commenced as of January 2026. However, planning and coordination activities remain ongoing.

Some transport experts have expressed concerns over station spacing and operational capacity, particularly in Victoria Island and along the Lekki axis. They have recommended the addition of more stations in high-traffic areas and stronger integration with existing rail lines to maximise ridership and efficiency.

Overall, the proposed 2026 allocation underscores the Federal Government’s continued interest in expanding rail infrastructure, even as timelines and funding structures evolve.

Kebbi Government Approves N650 Million Transformer Project to Curb Power Outages

The Kebbi State Government has approved the release of N650 million for the procurement and installation of a 15-megavolt-ampere (15MVA) power transformer, in a decisive move aimed at improving electricity supply and reducing persistent power outages across the state. The intervention underscores the administration’s willingness to directly address infrastructure bottlenecks that continue to affect households, businesses, and public services.

The approval was announced in Birnin Kebbi by the Secretary to the State Government, Yakubu Bala-Tafida, during a media briefing on recent decisions taken by the state government. According to him, the transformer project is part of broader efforts by the administration of Nasir Idris to ease the economic and social hardship caused by unreliable electricity supply.

Electricity challenges have remained a recurring concern for residents of Kebbi State, with frequent outages disrupting small businesses, increasing operating costs for manufacturers and traders, and affecting the delivery of essential public services such as healthcare and water supply. Bala-Tafida noted that the new transformer is expected to significantly improve load capacity and system stability, particularly in high-demand areas of the state.

What the government is saying
While electricity distribution is the statutory responsibility of the Kaduna Electricity Distribution Company (KAEDCO), the Kebbi State Government said it deemed it necessary to intervene in the interest of its citizens.

“Although power distribution falls under the purview of KAEDCO, the Kebbi State Government considered it expedient to step in and alleviate the suffering of residents caused by persistent and epileptic power supply,” Bala-Tafida said. He explained that the decision reflects the administration’s people-centred approach, especially at a time when energy costs and operational challenges are placing pressure on local economies.

Beyond the one-off N650 million transformer project, the SSG disclosed that the state government also provides monthly financial support of N150 million to KAEDCO. This recurring intervention, he said, is intended to enhance service delivery, support maintenance activities, and ensure a more sustainable electricity supply framework within the state.

Bala-Tafida also appealed to residents to play their part by promptly paying electricity bills and avoiding illegal connections, stressing that improved cooperation between consumers, the government, and the distribution company is critical to sustaining gains in power supply. According to him, enhanced revenue collection will enable KAEDCO to invest more in network upgrades and fault resolution.

Broader development context
The transformer project fits into a wider pattern of public investment by the Kebbi State Government across key social and economic sectors. In October, the state approved N4.05 billion for the rehabilitation of seven General Hospitals, a move aimed at strengthening healthcare delivery and improving access to quality medical services across urban and rural communities.

In the education sector, the government approved N1.4 billion for the procurement of school furniture for public schools, addressing long-standing shortages that have affected learning conditions. To improve data-driven governance, an additional N900 million was approved as a take-off grant for the newly established Kebbi State Bureau of Statistics, with Umar Usman appointed as the substantive Statistician-General.

The state has also announced plans to recruit 500 additional health workers and to absorb 390 staff members previously engaged under the Global Alliance for Vaccines and Immunisation (GAVI) into the state workforce. This is particularly significant for Kebbi, which has long struggled with shortages of healthcare personnel, especially at the level of Primary Healthcare Centres.

Investment and outlook
Governor Idris has consistently linked infrastructure improvements, including power supply, to the state’s broader economic ambitions. In February 2025, he disclosed that the state had attracted over N330 billion in foreign investment targeted at boosting tourism and preserving cultural heritage. Reliable electricity, analysts note, is a critical enabler for such investments, particularly in hospitality, creative industries, and small-scale manufacturing.

By approving the N650 million transformer project and sustaining monthly support to KAEDCO, the Kebbi State Government is signalling a pragmatic approach to development—one that prioritises immediate solutions to pressing challenges while laying the groundwork for long-term economic growth. If effectively implemented, the intervention could ease power-related constraints, lower business costs, and improve overall quality of life for residents across the state.

Kano State Approves N6.9 Billion for Infrastructure, Welfare, and Institutional Reforms

The Kano State Government has approved over N6.9 billion in fresh spending for infrastructure development, social welfare programmes, and governance-related initiatives, reinforcing its commitment to addressing critical development gaps across the state. The approvals were granted at the 36th meeting of the Kano State Executive Council, held at the Government House in Kano, and reflect a broad-based approach that combines physical infrastructure delivery with human capital development and institutional strengthening.

Briefing journalists after the meeting, the Commissioner for Information, Ibrahim Waiya, explained that the approved projects span road construction, drainage systems, water supply, education, entrepreneurship support, anti-corruption initiatives, and legislative reforms. According to him, the decisions underscore the administration’s intention to pursue inclusive development while ensuring that governance structures are modernised to support long-term growth.

A significant share of the approved funds is directed at road infrastructure and related compensation, highlighting the government’s focus on improving mobility and connectivity. The Executive Council approved N859.2 million for compensation payments to property owners affected by a five-kilometre road construction project in Tudun Wada Local Government Area. This measure is aimed at minimising social disruptions, ensuring fairness to affected residents, and enabling smooth execution of the project without prolonged disputes.

In addition, the council approved N2.6 billion for the construction of the Yandodo–Mai-Allo Road, a key transport corridor expected to enhance inter-community connectivity and support economic activity, particularly for traders and farmers who rely on efficient road networks. A further N1.2 billion was approved for the construction of a box culvert, while N896 million was allocated for the reconstruction of a failed culvert in Kiru Local Government Area, where recurring flooding has repeatedly disrupted transportation and economic life.

Urban resilience also featured prominently in the approvals. To address flooding and environmental risks, the council sanctioned N358.5 million for stormwater drainage projects in Kano Municipal. Complementing this, N85.6 million was approved for the extension of water pipelines in Gwale Local Government Area, aimed at improving access to potable water while also reducing flood-related challenges in densely populated neighbourhoods.

Beyond physical infrastructure, the Executive Council approved several initiatives targeted at education, youth empowerment, and public sector accountability. A total of N285 million was approved for classroom construction across the state, reflecting efforts to improve learning environments and accommodate growing enrolment. In addition, N431.7 million was earmarked for graduation ceremonies and empowerment programmes at the state’s Entrepreneurship Institute, reinforcing the government’s focus on skills development and job creation.

Institutional reform also received attention, with N157.7 million approved for the organisation of an anti-corruption workshop designed to strengthen transparency, ethics, and accountability within the public service. According to officials, this initiative aligns with broader efforts to improve governance standards and restore public confidence in state institutions.

On the legislative front, the council authorised the transmission of four bills to the Kano State House of Assembly. These include the Kano State Local Governments Administration Bill 2025, the Kano State Economic Planning and Development Council Bill 2025, the Kano State Education Bill 2025, and a bill to rename the Audu Bako College of Agriculture, Science and Technology, Dambatta. Collectively, the proposed laws are intended to strengthen local governance, improve planning coordination, reform the education sector, and update institutional identities.

The council also approved the implementation of the state’s Public-Private Partnership (PPP) Policy and Manual, signalling a strategic push to attract private sector participation in infrastructure delivery and public service provision.

Why this matters
The approval of over N6.9 billion highlights Kano State’s continued focus on tackling infrastructure deficits while investing in education, entrepreneurship, and governance reforms. Improved roads, drainage, and water infrastructure are expected to boost economic activity, reduce environmental risks, and enhance quality of life, particularly in rapidly growing urban and peri-urban areas.

The latest approvals also build on earlier investment decisions by the Kano State Executive Council. In previous briefings, the government announced approvals of N14.8 billion and over N69 billion for various developmental projects spanning healthcare, education, energy, and humanitarian interventions. Taken together, these cumulative investments signal a sustained and aggressive public investment posture aimed at driving holistic development across multiple sectors, even amid broader national debates on public finance and fiscal sustainability.

Lagos–Calabar Coastal Highway Secures $1.2 Billion UAE-Backed Financing Boost

Nigeria has secured fresh momentum for one of its most ambitious infrastructure projects as the Federal Government announced the successful arrangement of approximately $1.2 billion in financing backed by the United Arab Emirates for the Lagos–Calabar Coastal Highway. The development underscores growing international confidence in Nigeria’s infrastructure drive and provides renewed assurance that construction on the landmark coastal road will continue without disruption.

The announcement was made in a statement from the Presidency on Friday and reported by Bloomberg. According to the disclosure, the newly secured funding will be deployed to support construction work on a 56-kilometre stretch of the highway, a critical segment of the broader project that is expected to redefine transport and logistics along Nigeria’s Atlantic coastline.

When fully completed, the Lagos–Calabar Coastal Highway is projected to run for about 700 kilometres, cutting across several coastal states and linking major commercial, industrial, and tourism hubs in southern Nigeria. The road is envisioned as a high-capacity transport corridor that will ease congestion, reduce travel times, and open up new economic opportunities for coastal communities.

Federal Government’s position

President Bola Tinubu described the financing agreement as a major milestone that guarantees continuity on the project at a time when Nigeria is aggressively seeking to close its infrastructure deficit.

“This is a major achievement, and closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded,” the President said in the statement. He added that the administration remains committed to deploying innovative and diversified financing structures to deliver large-scale infrastructure across the country, without placing excessive strain on public finances.

The President’s remarks align with the Tinubu administration’s broader strategy of leveraging foreign capital, multilateral institutions, and private-sector partnerships to accelerate economic development and modernise Nigeria’s transport network.

Context and financing structure

The latest $1.2 billion facility builds on earlier funding secured for the same project, highlighting its scale and phased execution model. In July, Nigeria had arranged an additional $747 million in financing for another section of the coastal highway, signalling steady progress in mobilising capital for different segments of the road.

That earlier transaction was led by Deutsche Bank, which acted as Global Coordinator and Lead Arranger. The loan syndicate included a mix of international and regional financial institutions, such as First Abu Dhabi Bank, African Export-Import Bank, ECOWAS Bank for Investment and Development, Nexent Bank N.V. (formerly Credit Europe Bank N.V.), and Zenith Bank Plc.

Notably, the facility was fully underwritten by First Abu Dhabi Bank, with risk cover provided by the Islamic Corporation for the Insurance of Investment and Export Credit. This structure reflects increasing Gulf participation in Nigeria’s infrastructure financing landscape, as Middle Eastern lenders and insurers deepen their exposure to African growth projects.

Construction progress and technical standards

Construction of the highway is being handled by Hitech Construction, whose Managing Director, Dany Abboud, recently confirmed that more than 70% of the funded section has already been completed. He also highlighted the use of Continuously Reinforced Concrete Pavement (CRCP) technology, noting that it offers superior durability, lower lifecycle costs, and reduced maintenance compared to conventional asphalt roads.

According to Abboud, adopting CRCP sets a new benchmark for road construction in Nigeria and is expected to deliver long-term value for money, especially for a high-traffic coastal corridor exposed to harsh weather conditions.

Why it matters

The latest UAE-backed financing significantly strengthens funding certainty for one of Nigeria’s largest road projects and sends a positive signal to global investors about the country’s infrastructure programme. Beyond construction, the Lagos–Calabar Coastal Highway is expected to have far-reaching economic impacts—boosting trade logistics, stimulating tourism, supporting coastal real estate development, and enhancing regional integration among southern states.

For the Tinubu administration, the project also represents a flagship symbol of its commitment to growth-enabling infrastructure. If delivered on schedule and to specification, the highway could become a critical artery for Nigeria’s blue economy ambitions and a cornerstone of long-term economic transformation along the Atlantic corridor.

Kano Government Approves N16.2bn Gwarzo Road Contract, N4.4bn Karaye Dualisation in Major Infrastructure Push

The Kano State Government has approved major capital allocations for road infrastructure, committing N16.2 billion to the re-award of the Gwarzo–Tsaure–Tsanyawa Road project and N4.4 billion for the dualisation of a five-kilometre road in Karaye Local Government Area. The approvals underline the administration’s renewed focus on improving road connectivity across both urban and rural parts of the state.

The decisions were announced on Friday by Ibrahim Wayya, Commissioner for Information and Internal Affairs, during a press briefing on the outcome of the 35th State Executive Council (SEC) meeting. The briefing followed deliberations held earlier in the week and was reported by the News Agency of Nigeria.

According to Wayya, the council meeting was presided over by Governor Abba Kabir Yusuf on December 18, 2025, and featured a broad range of approvals spanning infrastructure, education, healthcare, water supply, and security.

Major road projects take centre stage

The re-award of the Gwarzo–Tsaure–Tsanyawa Road at a cost of N16.2 billion emerged as the single largest road project approved at the meeting. The corridor is considered a strategic route linking several communities and facilitating the movement of agricultural produce and commercial goods within Kano State.

In addition, the council approved N4.4 billion for the dualisation of a five-kilometre road in Karaye Local Government Area, making it the second-largest road allocation. The dualisation is expected to ease traffic congestion, improve safety, and support economic activity in the area.

Several other road rehabilitation and upgrade projects were also approved. These include N2.2 billion for the rehabilitation and asphaltic overlay of Murtala Muhammad Way, stretching from Bompai Road to Audu Bako Way. The council further approved N455.1 million and N591.2 million for additional works along key corridors around Airport Gate, Triumph Roundabout, and sections of Murtala Muhammad Way.

Rural roads were not left out. In Albasu Local Government Area, N171.4 million was approved for the rehabilitation of the Panda–Hamdullahi–Albasu–Sakwayen Dutse Road. Similarly, N1.4 billion was allocated for the Dangora–Masama–Dansoshiya feeder road and its link to the Dansoshiya Dam in Kiru Local Government Area. These projects are expected to improve access to farmlands, markets, and social services.

Investments beyond roads

Beyond transportation infrastructure, the SEC approved significant funding for education, health, water, and security-related projects. A total of N1.6 billion was approved to clear outstanding obligations owed to boarding school suppliers, addressing long-standing payment backlogs in the education sector.

An additional N369.9 million was allocated for the rehabilitation of Government Secondary School, Mariri, while N375 million was approved for the procurement of 50,000 crate bags to support students across the state.

In the water sector, the council approved N111.7 million for the rehabilitation of the Gani Earth Dam in Sumaila Local Government Area, alongside N398.2 million for Phase II of the Abba Kabir Yusuf Reach-Out Water Supply Projects. These investments are aimed at improving access to potable water, particularly in underserved communities.

Healthcare also featured prominently, with N318.1 million approved for the renovation and equipping of the Lamba Primary Healthcare Centre in Bichi Local Government Area.

On security, the council sanctioned N483.7 million for the procurement of 300 motorcycles for the Neighbourhood Watch Corps. The personnel were also formally absorbed into the state civil service with permanent and pensionable appointments, a move expected to boost morale and operational capacity.

Other approvals and broader context

Additional approvals included N916.15 million for the construction of a conference centre at the Governor’s Lodge in Kwankwasiyya City, N141.07 million for a Juma’at Mosque in Imawa, Kura Local Government Area, and N103.7 million for the reconstruction of a burnt mosque and Islamiyya school in Rimin Gado. The council also approved N577.3 million to settle outstanding debts owed to KEDCO and N6.8 billion as compensation for 5,015 property owners affected by urban renewal projects.

The latest approvals build on earlier infrastructure commitments by the Kano State Government. In August, the state awarded contracts worth over N40.8 billion for the construction and rehabilitation of 17 township roads across major metropolitan local government areas. Governor Yusuf has also submitted a N1.37 trillion budget proposal for 2026, although it remains unclear whether the newly approved projects will be fully captured within that budget framework.

Overall, the SEC decisions signal an aggressive infrastructure agenda aimed at improving mobility, service delivery, and economic activity across Kano State.

Enugu State Commits N10 Billion Equity Funding to Kick-Start 135.5km Standard-Gauge Rail Project

The Enugu State Government has set aside N10 billion as its initial equity contribution to the first phase of the ambitious 135.5-kilometre standard-gauge rail project, a central feature of the state’s proposed N1.62 trillion 2026 budget. This commitment underscores the state’s drive to reposition its transport infrastructure and enhance economic integration within the South-East region.

The funding disclosure was announced by the Senior Special Assistant on Media to Governor Peter Mbah, Dan Nwomeh, through an official statement shared on his X account on Thursday. According to Nwomeh, the government’s allocation is specifically tied to the first phase of the rail development plan, which forms part of a broader multimodal transport strategy aimed at improving mobility across Enugu and strengthening linkages with neighbouring states.

The proposed 135.5km rail line is designed to complement other evolving transport modes—such as trams, improved road networks, and inland water transportation—creating an integrated system that can support commercial activity, reduce travel bottlenecks, and spur urban development across the state. The statement further explained that the rail line is intended to run up to the boundaries of neighbouring South-East states, effectively positioning it as a regional connector that could ease interstate travel and promote cohesion among the Igbo states.

“The Enugu State Government says it has earmarked the sum of N10 billion in the 2026 budget as the state’s equity contribution to the first phase of the 135.5km standard-gauge rail it plans to build in the state,” the statement read. It added that the termination points at state borders were deliberately planned to encourage seamless continuation of rail infrastructure into surrounding territories.

The rail project features prominently in the extensive infrastructure plans embedded in Governor Peter Mbah’s 2026 budget proposal, presented earlier in December. His administration has repeatedly emphasized that modern transportation systems are essential to achieving Enugu’s economic transformation goals.

Background and Earlier Announcements

Plans for the 135.5-kilometre rail network were first publicly disclosed in April 2025. Speaking on the Enugu Kwenu Programme on Afia TV, the State Commissioner for Transportation, Dr. Obi Ozor, stated that the proposed rail corridor was expected to connect key South-East urban centres to Onne Port in Rivers State. This linkage, he noted, would significantly ease the movement of goods, strengthen regional commerce, and improve supply chain efficiency.

Ozor revealed that a feasibility study for the Enugu rail system and the broader South-East corridor had already been completed. At the time, the state was engaging the Nigerian Railway Corporation (NRC), as well as Chinese firms specializing in rail technology and construction, to explore partnerships for both technical implementation and financing. He also highlighted that the government was in talks with potential investors willing to participate in the capital-intensive project.

The NRC, meanwhile, has its own ongoing plans to revitalise various segments of Nigeria’s long-abandoned rail infrastructure. The corporation has shown openness to collaborative arrangements with state governments, similar to those adopted for the Lagos Blue and Red Line projects.

Concerns and Questions Raised by Experts

Despite the enthusiasm surrounding the project, transportation experts have expressed concerns about some of the technical and logistical details previously announced. One of the major issues relates to distance discrepancies: while the shortest road route between Enugu and Onne Port is roughly 232 kilometres, the state’s planned rail line is quoted at just 135.5 kilometres. Analysts argue that reconciling these figures requires further clarity.

Additionally, legal constraints pose important questions. Under current Nigerian law, state governments do not have unilateral authority to construct rail lines that extend into other states without formal partnerships or federal involvement. This raises concerns about the feasibility of building a corridor that would, by necessity, traverse multiple states.

Further complicating matters is the Commissioner’s earlier suggestion of potential extensions to Onitsha and Ebonyi. Such expansions would add roughly 185 kilometres, bringing the total corridor length to more than 417 kilometres—far exceeding the 135.5km figure repeatedly cited.

Looking Ahead

While these issues will likely require deeper discussion and technical clarification, Enugu State’s N10 billion equity contribution signals a strong intent to push forward with transformative infrastructure investments. If executed effectively, the rail project could reshape mobility, drive regional integration, and position Enugu as a central transport hub in the South-East.

Africa Holds 60% of the World’s Best Solar Resources but Attracts Only 2% of Global Energy Investment – EU

The European Union has raised fresh concerns over the persistent mismatch between Africa’s enormous renewable energy potential and the limited global investment flowing into the continent. Despite possessing 60% of the world’s best solar resources—more than any other region on earth—Africa receives only about 2% of global energy investment, according to a new statement issued by the EU.

The paradox is stark: Africa is the sunniest continent, with vast stretches of high-radiation land ideal for large-scale solar development, yet it continues to lag behind in renewable energy deployment due to structural financial, geographic, and logistical challenges. These include high capital costs, investor risk perceptions, limited access to long-term financing, inadequate transmission infrastructure, and supply chain inefficiencies that complicate equipment delivery and project execution.

The EU emphasised that this imbalance has far-reaching consequences. Currently, an estimated 600 million people—nearly half of Africa’s population—still lack access to electricity. With the continent’s population expected to double by 2050, the demand for affordable and sustainable energy will increase dramatically. Failure to expand clean electricity access could slow economic growth, undermine industrialization, and complicate global climate targets, as Africa is expected to play a central role in the global transition to low-carbon energy pathways.

To tackle these issues, the European Commission announced a major collaborative initiative designed to unlock renewable energy capacity across Africa. Led jointly by European Commission President Ursula von der Leyen and South African President Cyril Ramaphosa, the campaign has already mobilised €15.5 billion in commitments to accelerate Africa’s clean energy transition.

According to von der Leyen, the funds aim to transform the continent’s energy landscape by expanding access to stable, affordable power while supporting emerging industries. She noted that the investments would “turbocharge Africa’s clean-energy transition,” enabling millions of households, businesses, and communities to benefit from reliable, renewable electricity.

The €15.5 billion package is being mobilised through the EU’s Global Gateway programme—a flagship strategy designed to strengthen global infrastructure partnerships. The bulk of the funding comes from the European Union and a coordinated Team Europe effort involving Germany, France, Italy, Denmark, Spain, and the Netherlands. European financial institutions, development banks, and African partners—including the African Development Bank—have also committed to channeling significant resources into renewable energy expansion.

A major part of the campaign focuses on addressing the infrastructure bottlenecks that have historically hindered investment. These include upgrading transmission networks, expanding cross-border electricity trade, financing large-scale solar and wind farms, and supporting the industrial policies needed to stimulate local manufacturing of energy equipment. The initiative also aims to drive industrial decarbonisation, promote green hydrogen development, and enhance climate resilience across African economies.

Once fully implemented, the campaign is expected to deliver up to 26.8 gigawatts of renewable energy and bring electricity access to 17.5 million households that are currently off-grid or underserved. Team Europe partners have also signaled intentions to scale up investments by an additional €4 billion before 2030.

The EU says the partnership represents a long-term commitment to supporting Africa’s energy independence and reducing reliance on fossil fuels. By unlocking the continent’s vast solar resources, European and African leaders believe they can catalyse job creation, boost economic competitiveness, and deliver lasting environmental benefits.

MDGIF Injects N287 Billion Into Gas Infrastructure, Unlocks $500 Million in Additional Funding

Nigeria’s drive to reposition gas at the centre of its industrial and energy transition received a major boost as the Federal Government announced that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has invested more than N287 billion across critical national gas projects. This substantial commitment has not only accelerated infrastructure development but also unlocked $500 million in additional financing through strategic partnerships aimed at expanding the country’s gas value chain.

The disclosure was made by Mr. Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), during the maiden Energy Correspondents Association of Nigeria (ECAN) Conference in Abuja. The event marked four years of implementing the Petroleum Industry Act (PIA)—the transformative legislation designed to modernize Nigeria’s petroleum sector. Ahmed, represented by the Authority’s Legal Adviser and Secretary, Dr. Joseph Tolorunse, outlined the progress achieved since the PIA came into effect.

Strategic Investment to Catalyse Nigeria’s Gas Future

According to Ahmed, the MDGIF’s N287 billion investment was deployed across 62 strategic gas infrastructure projects, implemented in partnership with 16 companies. These projects are designed to stimulate industrial growth, improve nationwide energy access, and enhance gas processing and transportation systems. The scale of the investment reflects the government’s commitment to positioning gas as the country’s primary transition fuel, in line with global decarbonisation trends and Nigeria’s industrialization objectives.

The Authority’s collaboration with the African Export-Import Bank (Afreximbank) has also attracted $500 million in complementary funding. Ahmed noted that such partnerships are key to de-risking sector investments and crowding in private capital for long-term gas development. The MDGIF’s catalytic role, he said, is central to unlocking Nigeria’s vast gas reserves, strengthening industries that depend on reliable energy supply, and positioning the nation as a regional gas hub.

Four Years of Regulatory and Operational Progress Under the PIA

Ahmed highlighted significant achievements recorded since the implementation of the PIA, describing the last four years as a period of regulatory consolidation, improved operational efficiency, and enhanced transparency in the midstream and downstream sector.

Among the key milestones:

18 new regulations have been fully gazetted, providing legal clarity and strengthening the sector’s governance framework.
Several processes within the NMDPRA have been automated to support the Federal Government’s ease-of-doing-business reforms.
Daily crude allocation to domestic refineries has expanded from 20,000 barrels per day in 2023 to over 40,000 barrels per day in 2025 — a critical step toward reducing dependence on imported refined products.

These reforms have had measurable outcomes. For instance, local production of Premium Motor Spirit (PMS) rose sharply from 1.3 billion litres in 2024 to 3.8 billion litres in 2025, demonstrating improved refinery performance and better feedstock supply.

Ahmed also cited major PIA-supported projects, including:

UTM Offshore Floating LNG project
NLNG Train 7 expansion
Ajaokuta–Kaduna–Kano (AKK) gas pipeline
OB3 gas pipeline
Indorama fertilizer complex
Waltersmith modular refinery expansion
Supertech methanol plant

These projects, spanning gas processing, LNG production, petrochemicals, and energy transition infrastructure, are expected to deepen gas utilisation and support industries such as fertilizers, manufacturing, refining, and power generation.

Accelerating Gas Distribution and Refining Capacity

Under the PIA framework, the NMDPRA has also intensified efforts to grow pipeline capacity and expand domestic refining. The Authority has:

Issued 10 gas distribution licences covering 692 km of pipeline network with a combined capacity of 712 million standard cubic feet per day (mmscfd).
Granted 23 refinery establishment licences, expected to add over 850,000 bpd to Nigeria’s refining capacity once fully operational.

These developments indicate a strategic push toward achieving energy security and reducing import dependency.

What You Should Know

Earlier this year, NMDPRA approved licences for three new refineries in Abia, Delta, and Edo States, with a combined capacity of 140,000 barrels per day. These include:

Eghudu Refinery Ltd (Edo State) – 100,000 bpd
MB Refinery and Petrochemicals Ltd (Delta State) – 30,000 bpd
HIS Refining and Petrochemical Co. Ltd (Abia State) – 10,000 bpd

Together, these investments signal aggressive progress in Nigeria’s journey toward becoming a refining and gas-development powerhouse.

Delta Assembly Approves N18.1 Billion Bank Guarantee for Asaba Power Project

The Delta State House of Assembly has approved Governor Sheriff Oborevwori’s request for the re-issuance of an ₦18.1 billion bank guarantee in favour of Bastanchury Power Solutions Nigeria Limited, the developer of the Asaba Independent Power Project (IPP). The approval authorizes the transfer of the bank guarantee from Sterling Bank to Access Bank Plc, signaling a new phase in the state’s efforts to expand its energy infrastructure and strengthen power supply within the capital territory.

The decision was reached during Tuesday’s plenary session following the reading of a formal request from the governor by the Speaker, Rt. Hon. Dennis Guwor. The governor explained that the re-issuance was necessary to facilitate Access Bank’s new partnership with the Delta State Government, particularly in managing the state’s composite Internally Generated Revenue (IGR). According to him, the move is expected to improve financial efficiency, revenue transparency, and project sustainability.

Transition to Access Bank

Governor Oborevwori noted that the state’s existing IGR account had long been tied to the initial bank guarantee issued by Sterling Bank on behalf of Bastanchury Power under the Asaba Independent Power Purchase Agreement (PPA). The new arrangement transfers this financial commitment to Access Bank, which has recently been engaged by the state as its lead banking partner for IGR management.

He explained that Delta State’s obligations under the PPA are twofold.

“The first obligation is the issuance of an ₦18.1 billion Bank Guarantee to cover compensation payments and the buy-out amount stipulated in the agreement, renewable annually,” Oborevwori said.
“The second involves the issuance of a monthly Irrevocable Standing Payment Order (ISPO) of ₦430.7 million, with a 2.5% annual increment to cover capacity, operations, and maintenance costs for the power infrastructure. These payments will be drawn directly from the composite IGR account domiciled with Access Bank.”

The governor emphasized that the re-issuance is purely a financial re-alignment, ensuring the state maintains its contractual obligations under the PPA while benefiting from the improved terms and efficiency that come with the new IGR structure.

Lawmakers Endorse the Request

After the letter was read, the Leader of the House, Hon. Emeka Nwaobi, moved a motion for approval, which was seconded by the Deputy Speaker, Hon. Arthur Akpowowo. The motion received unanimous support through a voice vote, demonstrating bipartisan backing for the governor’s initiative.

In his remarks, the Speaker, Hon. Guwor, commended the state government for its proactive fiscal management and for taking steps to strengthen the power sector, which remains a key driver of industrial and economic growth. He noted that the Asaba Power Project, when fully operational, will significantly improve electricity supply across the capital city and adjoining areas, reducing the state’s dependence on the national grid.

The approval is expected to fast-track the next phase of work on the Asaba Independent Power Project, a key infrastructure initiative designed to boost industrialization, attract investment, and support the state’s Smart Delta Agenda.

Ensuring Continuity and Financial Transparency

Governor Oborevwori reassured lawmakers that the Sterling Bank guarantee would be cancelled immediately after Access Bank issues the new one, ensuring a seamless transition with no duplication of obligations. He also emphasized that the partnership with Access Bank will enable better monitoring and accountability of revenue inflows, allowing the government to meet its financial commitments efficiently.

He stated that the re-issuance aligns with the State Executive Council’s approval of a broader financial restructuring initiative intended to consolidate IGR operations, enhance liquidity, and ensure timely funding of major capital projects.

Broader Fiscal Commitments

The governor’s latest request comes against the backdrop of Delta State’s continued efforts to improve fiscal discipline and transparency. In August, Governor Oborevwori approved the immediate release of ₦10 billion to offset outstanding pension arrears owed to retirees. According to official data, his administration has paid over ₦36 billion to service pensions since assuming office, while maintaining a monthly disbursement of ₦1.4 billion to meet ongoing obligations to pensioners.

This steady financial performance, analysts say, has positioned Delta among Nigeria’s more fiscally responsible states, with a strong balance between infrastructure investment and social welfare spending. The Asaba IPP, in particular, is seen as a cornerstone project capable of transforming Delta’s power landscape, supporting local businesses, and attracting manufacturing investment to the region.

Strategic Importance of the Asaba IPP

The Asaba Independent Power Project is expected to deliver reliable and cost-effective electricity to government institutions, industrial clusters, and residential areas. It is a public-private partnership (PPP) between the Delta State Government and Bastanchury Power Solutions, structured to ensure long-term sustainability through guaranteed payments backed by the state’s IGR.

Upon completion, the project will not only reduce dependence on diesel generators but also cut operational costs for public facilities, promote cleaner energy use, and enhance the ease of doing business within the state capital.

By approving the re-issuance of the ₦18.1 billion bank guarantee, the Delta State Assembly has reaffirmed its support for the governor’s infrastructure agenda — a move expected to accelerate progress on one of the state’s most ambitious power projects to date.