Enugu allocates N10 billion equity funding to first phase of 135.5km rail project

The Enugu State Government has allocated N10 billion as its equity contribution to the first phase of the planned 135.5-kilometre standard-gauge rail project in the N1.62 trillion 2026 budget.

The disclosure was made in a statement issued by the Senior Special Assistant on Media to Governor Peter Mbah, Dan Nwomeh, via his official X account on Thursday.

According to the statement, the allocation is linked to the first phase of the rail line, which is part of the government’s plan to establish a multimodal transport system designed to improve movement within Enugu and provide connections to neighbouring South-East states.

The 135.5km rail line is expected to complement other transport modes, including tram, road, and inland waterways, enhancing mobility and supporting economic activity across the state.

“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 in part. 

It added, “The rail project is also designed to terminate at doorsteps of the neighbouring states for easy continuation to enhance connectivity, especially among the South East States.” 

The statement further noted that the project was part of the broader infrastructure priorities embedded in the state’s 2026 budget, which Governor Mbah presented earlier in December.

What you should know 

Months earlier, in April 2025, the Enugu State Government first announced plans for the 135.5-kilometre standard-gauge rail line. The Enugu State Commissioner for Transportation, Dr. Obi Ozor, shared during an interview on the Enugu Kwenu Programme aired on Afia TV that the line was expected to link key South-East cities to Onne Port in Rivers State.

• At the time, he noted that a feasibility study for the Enugu rail network and South-East corridor had been completed. Ozor added that the government was collaborating with the Nigerian Railway Corporation (NRC) and Chinese companies on rail infrastructure, while engaging investors for financing.
• The NRC, in its wider efforts to expand Nigeria’s rail network, has several plans to revive long-abandoned railway infrastructure and work with state governments to establish local rail lines, similar to Lagos State’s Red and Blue Lines projects.

Experts in the field, however, have raised questions about the planned project based on the details provided by Ozor.

• The shortest road distance between Enugu and Onne Port is roughly 232km, but the proposed standard-gauge rail line is quoted as 135.5km, making it unclear how the line could connect the two locations.
• Under the current Nigerian legal framework, a state-owned entity cannot construct a railway in another state, raising questions about how Enugu could develop a line passing through several other states without their involvement.
• In addition, the proposed extensions to Onitsha and Ebonyi add approximately 185km, bringing the total to around 417km, far more than the 135.5km mentioned by the Commissioner.

Enugu allocates N10 billion equity funding to first phase of 135.5km rail project  - Nairametrics