Nigeria sets $11bn for Lagos-Calabar coastal rail

Nigeria's Federal Executive Council has given the green light to the commencement of the Lagos-Calabar coastal railway project, a significant development expected to transform transportation infrastructure in the country. The project, set to be completed within six years, aims to connect all coastal cities in Nigeria through a modern rail network. CNBC Africa recently spoke with Buka Kyari, former Chairman of the Nigerian Economic Summit Group, to unpack the implications of this ambitious initiative and delve into other pressing economic issues facing the nation. Kyari expressed enthusiasm for the coastal rail project, highlighting its potential to stimulate economic growth along the corridor and underscored the importance of a well-connected national rail network. He emphasized the need for efficient delivery of the project within the allocated $11 billion budget to maximize its impact. The approval of the Lagos-Calabar rail project signals a significant step towards addressing Nigeria's infrastructure deficit and boosting regional connectivity. Kyari also addressed concerns around Nigeria's upcoming Eurobond issuance, which is aimed at funding the country's growing deficit. While acknowledging the need for increased capital expenditure, he stressed the importance of enhancing revenue collection efficiency to mitigate rising debt servicing costs. Kyari emphasized the potential for revenue growth through tax reforms, citing successful models from Eastern European countries that significantly increased tax revenues by simplifying tax structures and improving compliance. He urged Nigerian authorities to explore similar strategies to enhance revenue generation and achieve sustainable fiscal stability. As Nigeria navigates complex economic challenges, strategic investments in infrastructure and revenue optimization will be critical for driving long-term sustainable growth and development.