The Federal Government has earmarked more than ₦240 billion for rail-related projects and programmes in the 2026 Appropriation Bill, highlighting the growing importance of The Federal Government has earmarked more than ₦240 billion for rail-related projects and programmes in the 2026 Appropriation Bill, s infrastructure, urban mobility, and logistics strategy.

An analysis of the budget shows that rail funding is spread across the Nigerian Railway Corporation (NRC), the Federal Ministry of Transport, and major counterpart-funded rail projects, with capital expenditure taking the lead.

At the operational level, the Nigerian Railway Corporation received a total allocation of ₦34.24 billion, comprising ₦11.65 billion for capital projects and ₦22.58 billion for recurrent expenditure.

Capital spending within the NRC focuses largely on train procurement valued at ₦5.97 billion, alongside ₦1.95 billion for railway rehabilitation, ₦560 million for track, bridge, and culvert repairs, and ₦420 million for rail construction works aimed at sustaining existing services and improving safety.

Beyond the NRC, larger rail investments are embedded in the capital budget of the Federal Ministry of Transport. These include ₦29.04 billion for railway modernisation projects, covering ongoing intercity rail corridors such as the Kano–Maradi line.

In addition, the government provided ₦102.30 billion as counterpart funding for the Lagos Green Line Metro Rail (Phase 1), reflecting a strong push towards urban rail development in Lagos.

Further allocations include ₦68.50 billion for consultancy services for proposed rail corridors, including the Lekki–Ijebu Ode, Ore–Kajola, and coastal rail lines.

The funding supports feasibility studies, project structuring, and bankability preparation ahead of future construction and concessions.

Taken together, these provisions put total federal spending and commitments to the rail sector at well over ₦240 billion in 2026, positioning rail as one of the most capital-intensive components of the transport budget.

Budget analysts note that the funding pattern reflects a deliberate strategy to consolidate existing rail assets, advance urban rail systems, and prepare new corridors for private sector participation rather than embarking on widespread new construction simultaneously.

The emphasis on capital spending also highlights the government’s expectation that rail infrastructure will play a growing role in decongesting roads, reducing logistics costs, and supporting long-term economic productivity.