The federal government of Lagos has awarded the contract for the upgrading of the Lagos-Ibadan railway to Chinese firm CCECC Nigeria.
The double-track railway modernisation project is valued at over $1. 5 billion and covers a distance of some 157 km between Lagos and the Oyo State capital further north.
The project is to be partly-financed by the Chinese government, through a $1 billion China EXIM Bank loan, with the Lagos government expected to pay the balance of over $500 million.
The Chinese construction firm pledged to deliver the project within the agreed two years. The firm said that, when finished, it would take less than an hour to go between Lagos and Ibadan, and that the system would have a capacity of 1,000 passengers.
Lagos transport minister Idris Umar said he was optimistic that the new rail link would mean an increase in economic activity for the two cities.