FG Secures N250bn Funding for Kaduna, Kano Light Rail Projects

The Federal Government has secured N250 billion in funding to kick-start the development of modern light rail systems in Kaduna and Kano States, in a move aimed at strengthening urban mobility and boosting regional development.

The disclosure was made on Monday in Abuja by the Minister of Information and National Orientation, Alhaji Mohammed Idris, during a World Press Conference, according to the News Agency of Nigeria (NAN).

Idris revealed that Kano State will receive N150 billion, while Kaduna State will benefit from N100 billion under the initiative. He emphasized that the administration of President Bola Tinubu is determined to advance critical subnational infrastructure that directly impacts citizens’ lives.

“The Federal Government is actively supporting various subnational infrastructure projects, for instance, the light rail projects in Kano and Kaduna States, for which funding to the tune of N150 billion and N100 billion, respectively, has been secured,” Idris said.

Boosting Local Governance and Fiscal Autonomy

The minister also highlighted broader reforms aimed at strengthening grassroots governance, stressing that local government areas (LGAs) are being fiscally reintegrated to function as true engines of growth and development.

He explained that financial autonomy for LGAs is a key priority for President Tinubu’s administration, ensuring they are more effective in service delivery, community engagement, and infrastructure provision.

According to Idris, the removal of fuel subsidy and ongoing fiscal reforms have led to higher federation allocations to state governments, giving them greater fiscal space to focus on capital projects with less reliance on debt.

What You Should Know

• The Kaduna and Kano light rail projects form part of the Federal Government’s broader push to modernize transportation, improve urban mobility, and drive balanced regional development.
• In July 2025, the Minister of Transportation, Saidu Ahmed Alkali, announced plans to prioritize light rail projects in northern states, beginning with Kaduna and Kano.
• The initiative is to be facilitated through the Ministry of Finance Incorporated (MOFI) and supported by strategic public–private partnerships (PPPs), ensuring that funding, implementation, and long-term management align with national sustainability goals.