The Traffic

Eastern Rail Rebirth: $3B Secured as Senate Approves Tinubu’s $21B Global Loan Package

The long-awaited revival of Nigeria’s Eastern Rail Corridor is finally on track — and it's arriving with a $3 billion boost. As part of a sweeping $21 billion foreign loan package approved by the Senate on Tuesday, a significant slice is now earmarked for restoring the historic rail line stretching from Port Harcourt to Maiduguri.

The corridor, spanning Nigeria’s South-East to the North-East, has for years been neglected — its rusted tracks and abandoned stations a ghostly echo of what was once a key artery of regional commerce. That’s set to change.

“This is the first time I’m seeing $3 billion dedicated to the Eastern rail line,” said Senator Victor Umeh of Anambra Central with visible enthusiasm. “That alone justifies my total support for this loan package.”

The rail upgrade forms part of President Bola Ahmed Tinubu’s ambitious $21.19 billion external borrowing plan for the 2025–2026 fiscal period — a comprehensive financial toolkit that also includes €4 billion, ¥15 billion, a $65 million grant, ₦757 billion in domestic bonds, and a further $2 billion to be raised through foreign-currency-denominated instruments in the local market.

This marks one of Nigeria’s boldest multi-year borrowing strategies, covering infrastructure, agriculture, security, energy, housing, and digital innovation.

The Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko, presented the detailed loan plan, which was first submitted to the National Assembly back in May. Legislative recesses and documentation delays at the Debt Management Office (DMO) slowed down its processing — but it’s now full steam ahead.

“The 2025 budget already includes these borrowings,” said Senator Solomon Adeola, Chairman of the Senate Committee on Appropriations. “This approval ensures all revenue lines are in place to fund every component of the budget.”

Senator Mohammed Musa added clarity, noting that the disbursement will not be immediate but staggered across six years. He defended the borrowing strategy as standard global practice, not an economic gamble.

“Every growing economy taps into credit,” Musa explained. “What we’re doing here mirrors the global blueprint for infrastructure-led growth.”

Senator Tokunbo Abiru, who heads the Senate Committee on Banking, Insurance, and Other Financial Institutions, emphasized that these loans are concessional — structured under favorable terms — and fully compliant with Nigeria’s legal borrowing framework.

“We’ve ensured these loans align with both the Fiscal Responsibility Act and the Debt Management Act,” Abiru said. “They’re not just sustainable — they’re tied directly to projects that matter.”

With legislative approval secured, the focus now shifts to execution. If delivered as promised, the Eastern Rail Corridor could become a symbol of equitable development and economic revitalization — reconnecting major cities and breathing life into communities long forgotten by modern infrastructure plans.

In the bigger picture, this $3 billion allocation is more than a rail project — it’s a statement that Nigeria is finally looking east with intent, and this time, it’s arriving with steel, steam, and substance.

By Haruna Yakubu Haruna