In a significant move to bolster Nigeria’s infrastructure and stimulate economic growth, the Federal Government has secured N250 billion in funding for light rail projects in Kaduna and Kano states. This landmark announcement, made by the Minister of Information and National Orientation, Mohammed Idris, during a world press conference in Abuja on Monday, September 29, 2025, comes as part of President Bola Tinubu’s ambitious agenda to transform the nation’s infrastructure landscape and promote balanced development across all regions. The announcement was strategically timed ahead of Nigeria’s 65th Independence Anniversary, underscoring the administration’s commitment to delivering tangible progress as the country marks this historic milestone.
The funding allocation, which comprises N150 billion for Kano and N100 billion for Kaduna, is a testament to the government’s focus on enhancing transportation infrastructure, a critical component of economic growth and social cohesion. These light rail projects are expected to revolutionize urban mobility, reduce congestion, and facilitate seamless connectivity within these two northern states, which are pivotal economic hubs in their respective regions. By prioritizing such transformative infrastructure, the Tinubu administration aims to address longstanding challenges in transportation while fostering inclusive development that benefits both urban and rural communities.
A Commitment to Balanced and Inclusive Development
During the press conference, Minister Idris emphasized that the light rail projects are emblematic of the administration’s broader vision for equitable development. “These projects underscore the administration’s commitment to balanced, inclusive development, with capital distribution across all zones,” he stated. This approach ensures that no region is left behind in the government’s development agenda, a principle that has been central to President Tinubu’s governance philosophy since taking office. By channeling significant resources into Kaduna and Kano, two states with substantial economic and demographic weight, the government is strategically investing in areas that can catalyze growth not only locally but also regionally.
Kaduna, a major industrial and commercial center in northern Nigeria, and Kano, a historic trading hub with a vibrant economy, stand to benefit immensely from these projects. The light rail systems will enhance intra-city connectivity, making it easier for residents to commute, access markets, and engage in economic activities. Improved transportation infrastructure is also expected to attract investment, spur job creation, and stimulate small and medium-scale enterprises, which are the backbone of Nigeria’s economy. By prioritizing these states, the government is signaling its intent to empower regional economic hubs to drive national growth.
Fiscal Autonomy and Increased Allocations for States
A key enabler of these infrastructure projects is the increased financial autonomy granted to sub-national governments, a direct outcome of the Tinubu administration’s economic reforms. Minister Idris highlighted that the removal of the fuel subsidy, a bold and contentious policy decision, has significantly boosted allocations to states from the Federation Account. This policy shift has freed up substantial resources, enabling state governments to fund critical projects without relying heavily on borrowing. “Sub-national governments now receive increased allocations from the Federation Account due to the removal of fuel subsidy, allowing states to fund more projects with less debt burden,” Idris explained.
The removal of the fuel subsidy, implemented in 2023, was a cornerstone of President Tinubu’s economic reform agenda. While it initially sparked public debate due to its impact on fuel prices, the policy has yielded significant fiscal dividends, allowing the government to redirect savings into priority sectors such as infrastructure, agriculture, and social welfare. The increased Federation Account allocations have empowered states to take greater responsibility for their development agendas, aligning with the administration’s goal of decentralizing economic growth and fostering grassroots development.
This enhanced fiscal autonomy is particularly significant for local governments, which Idris described as “growth drivers” in Nigeria’s federal structure. By providing local governments with greater financial resources, the administration is enabling them to undertake projects that directly impact their communities, from road construction to healthcare and education initiatives. This approach not only strengthens local governance but also ensures that development is felt at the grassroots level, where it matters most.
Recapitalization of the Bank of Agriculture: A Boost for Food Security
In addition to the light rail projects, Minister Idris announced a historic recapitalization of the Bank of Agriculture (BOA) with an unprecedented N1.5 trillion, marking the largest single investment in agricultural financing in Nigeria’s history. This bold move is aimed at transforming the agricultural sector, which remains the backbone of Nigeria’s economy, employing millions of citizens and contributing significantly to the country’s GDP. The recapitalization will enable the BOA to provide affordable credit to farmers, agribusinesses, and cooperatives, addressing one of the most persistent challenges in the sector: access to finance.
Agriculture in Nigeria has long been plagued by structural challenges, including limited access to capital, outdated farming practices, and inadequate infrastructure. The recapitalization of the BOA is a strategic intervention designed to address these issues and unlock the sector’s vast potential. By providing farmers with the financial resources needed to invest in modern equipment, high-yield seeds, and advanced farming techniques, the government aims to boost agricultural productivity, enhance food security, and reduce Nigeria’s dependence on food imports.
The N1.5 trillion injection into the BOA is expected to have far-reaching implications for rural economies, where agriculture is the primary source of livelihood. By empowering smallholder farmers and agribusinesses, the government is fostering inclusive growth that benefits millions of Nigerians, particularly in rural areas where poverty rates remain high. Furthermore, the recapitalization aligns with the administration’s broader goal of diversifying the economy away from oil, a priority that has gained urgency in light of global energy transitions and fluctuating oil prices.
Establishment of the Federal Ministry of Livestock Development
Another significant announcement made by Minister Idris was the establishment of the Federal Ministry of Livestock Development, a new institution dedicated to unlocking opportunities in Nigeria’s livestock sector. This move reflects the government’s recognition of the livestock industry’s potential to drive economic growth, create jobs, and enhance food security. Nigeria’s livestock sector, which includes cattle, poultry, and fisheries, is a critical component of the agricultural economy, yet it has historically been underexploited due to limited investment and policy focus.
The creation of a dedicated ministry signals the government’s commitment to addressing the challenges facing the livestock sector, including conflicts between farmers and herders, inadequate infrastructure, and limited access to modern breeding and processing technologies. By establishing the Ministry of Livestock Development, the administration aims to provide targeted support to stakeholders in the sector, from pastoralists to large-scale livestock producers. This includes investments in veterinary services, feed production, and processing facilities, as well as initiatives to promote peaceful coexistence between herders and farmers.
The livestock sector holds immense potential for Nigeria, not only in terms of domestic food production but also for export markets. With a growing population and increasing demand for protein-rich foods, the sector could become a major driver of economic growth and foreign exchange earnings. The establishment of the ministry is a proactive step toward harnessing this potential, ensuring that the livestock industry contributes meaningfully to Nigeria’s economic diversification and development goals.
A Call to Action for All Tiers of Government
Minister Idris concluded his remarks with a call to action for all tiers of government, emphasizing that the initiatives announced are part of a collective effort to drive comprehensive economic growth and development. “With these initiatives, no tier of government has any excuse not to fully pull its weight in the collective task of comprehensive economic growth and development,” he declared. This statement reflects the administration’s expectation that state and local governments will leverage their increased fiscal autonomy and federal support to deliver transformative projects that benefit their constituents.
The Tinubu administration’s focus on infrastructure, agriculture, and livestock development aligns with its broader vision of creating a prosperous and inclusive Nigeria. By investing in critical sectors and empowering sub-national governments, the administration is laying the foundation for sustainable growth that transcends regional and political divides. The light rail projects in Kaduna and Kano, the recapitalization of the Bank of Agriculture, and the establishment of the Ministry of Livestock Development are not isolated initiatives but part of a cohesive strategy to transform Nigeria’s economy and improve the lives of its citizens.
Broader Implications for Nigeria’s Development
The announcement of these initiatives comes at a pivotal moment in Nigeria’s history, as the country prepares to celebrate its 65th Independence Anniversary. Over the past six decades, Nigeria has faced numerous challenges, from economic volatility to infrastructure deficits and security concerns. However, the Tinubu administration’s proactive approach to governance, characterized by bold reforms and strategic investments, signals a renewed commitment to addressing these challenges and positioning Nigeria as a leading economy in Africa.
The light rail projects in Kaduna and Kano are particularly significant in the context of Nigeria’s urbanization trends. With rapid population growth and increasing migration to urban centers, cities like Kaduna and Kano face mounting pressure on their transportation systems. Congested roads, unreliable public transport, and long commute times have long hindered productivity and quality of life in these cities. The introduction of light rail systems will not only alleviate these challenges but also position Kaduna and Kano as modern, efficient urban centers capable of competing on a global stage.
Moreover, the focus on agriculture and livestock development reflects the administration’s recognition of the need to address food security and rural poverty. Nigeria’s population, projected to reach 400 million by 2050, places immense pressure on the country’s food systems. By investing in agriculture and livestock, the government is taking proactive steps to ensure that Nigeria can feed its growing population while creating economic opportunities for millions of citizens.
Challenges and Opportunities Ahead
While the announced initiatives are ambitious and promising, their success will depend on effective implementation and sustained political will. Infrastructure projects, particularly large-scale ones like light rail systems, are often complex and require meticulous planning, transparent procurement processes, and robust oversight to avoid delays and cost overruns. The government will need to work closely with state authorities, private sector partners, and international stakeholders to ensure that the projects are delivered on time and within budget.
Similarly, the recapitalization of the Bank of Agriculture and the establishment of the Ministry of Livestock Development will require strong institutional frameworks to maximize their impact. The BOA, for instance, must ensure that its lending processes are transparent, accessible, and targeted at genuine farmers and agribusinesses. The Ministry of Livestock Development, meanwhile, will need to navigate the complex dynamics of Nigeria’s livestock sector, including addressing farmer-herder conflicts and promoting sustainable practices.
Despite these challenges, the opportunities presented by these initiatives are immense. The light rail projects could serve as a model for other states, encouraging them to invest in modern transportation infrastructure. The agricultural and livestock interventions, if successful, could transform Nigeria into a regional powerhouse in food production and agribusiness. Most importantly, these initiatives have the potential to improve the lives of ordinary Nigerians, from urban commuters to rural farmers, by creating jobs, enhancing mobility, and ensuring access to affordable food.
Conclusion
The Federal Government’s announcement of N250 billion in funding for light rail projects in Kaduna and Kano, alongside the recapitalization of the Bank of Agriculture and the establishment of the Ministry of Livestock Development, marks a significant milestone in Nigeria’s development journey. These initiatives reflect the Tinubu administration’s commitment to inclusive growth, fiscal empowerment, and economic diversification. As Nigeria celebrates its 65th Independence Anniversary, these projects serve as a beacon of hope, demonstrating the government’s resolve to build a prosperous and equitable nation.
By investing in infrastructure, agriculture, and livestock development, the administration is addressing some of Nigeria’s most pressing challenges while laying the groundwork for sustainable progress. The success of these initiatives will depend on effective implementation, collaboration across all tiers of government, and the active participation of the private sector and citizens. As Nigeria moves forward, these bold steps signal a brighter future, one where economic opportunities are accessible to all, and no region is left behind in the pursuit of national development.
