The Federal Government yesterday said it had signed a $1.49 billion contract with China Civil Engineering Construction Company (CCECC) to build a railway between Lagos and Ibadan.
The contract has a completion period of 36 months.
Briefing State House correspondents after the weekly Federal Executive Council (FEC) meeting yesterday, Information Minister Labaran Maku said the project is a segment of the railway modernization project from Lagos, Ibadan, Ilorin, Minna and Kano.
Maku said "when completed, it would generate employment for about 5000 Nigerians. Work on the project commenced in 2006 but could not be completed because of lack of funds."
The council also approved a minor variation to the Abuja metro rail project reducing the span of the project and its cost.
FCT Minister Bala Mohammad said, "the scope of the contract for the design and construction of Abuja Rail Mass Transit project (Lots 1&3) from 60.67km to 45.245km (Lots 1A&3), thereby revising the contract from $841.6million to $823.million payable at the prevailing exchange rate.
"The approval was necessary because the Abuja Rail Mass Transit System was an integral part of the FCT Transportation Master Plan designed primarily to convey a large number of commuters and goods between the satellite towns and different phases of the FCT."