Need for Legislative Oversight of the Proposed $200bn Integrated Gas, Power and High-Speed Rail Project

Abstract

Nigeria is currently reviewing a proposed $200 billion Integrated Gas, Power and High-Speed Rail Project submitted by De-Sadel (Nig.) Limited in partnership with China Liancai Petroleum Investment Holdings Limited. The project is designed to deliver a nationwide infrastructure transformation, including a 4,000-kilometre high-speed rail network connecting major economic corridors such as Lagos, Abuja, Kaduna, Kano, and Port Harcourt, alongside large-scale gas powered electricity generation and transmission infrastructure estimated at 3,500MW in phase one and up to 8,500MW in total. The proposal also includes associated fibre optic infrastructure and real estate development around rail corridors. In response to the scale and complexity of the proposal, the Federal Government has constituted a multi-agency technical committee comprising key Ministries, Departments, Agencies, and security institutions, including the Ministries of Transportation, Petroleum Resources, Finance, Justice, Environment, as well as NERC, CBN, EFCC, NFIU, DSS, NIA, and the Infrastructure Concession Regulatory Commission (ICRC). The committee is tasked with conducting due diligence on financial viability, technical capacity, regulatory compliance, sovereign exposure, and security implications prior to any Federal Executive Council approval. While the project presents significant potential for national transformation, it raises critical governance and accountability concerns. Key issues include uncertainty around the financial exposure to the Federal Government, particularly potential sovereign guarantees or contingent liabilities associated with the proposed funding structure. The integrated multi-sector design also introduces implementation complexity, increasing risks of coordination failures, cost overruns, and project fragmentation. Questions remain regarding the technical and financial capacity of the project promoters, as well as the transparency of procurement processes and concession arrangements. Furthermore, the absence of early-stage legislative visibility increases the risk of insufficient oversight over long-term fiscal commitments. Given the scale of the proposed investment and its implications for public finance, infrastructure delivery, and national development planning, the National Assembly has a critical role in ensuring transparency, accountability, and value for money. Early legislative engagement is necessary to mitigate risks of unsustainable debt exposure, strengthen PPP governance, and ensure alignment with Nigeria’s fiscal and development frameworks. Accordingly, the National Assembly, through its relevant Committees on Works, Transportation, Aviation, Gas, Finance, National Planning, Public Accounts, and Anti-Corruption and Financial Crimes, may consider the following actions: ● Convene a joint legislative briefing involving the Federal Government technical committee, ICRC, CBN, NERC, Federal Ministry of Finance, and project promoters to present full project details, financing structure, and implementation plans. ● Require full disclosure of the project’s financial architecture, including funding sources, sovereign guarantees, contingent liabilities, and repayment assumptions. ● Undertake legislative due diligence on the proposed PPP/concession framework to ensure compliance with Nigeria’s fiscal responsibility and PPP regulatory frameworks. ● Mandate independent technical and economic feasibility assessments to validate cost assumptions, projected returns, and overall viability. ● Strengthen oversight of inter-agency coordination to ensure regulatory harmonisation and prevent duplication or governance gaps. ● Enforce public interest safeguards covering tariffs, land acquisition, environmental compliance, local content participation, and social impact considerations. ● Require periodic reporting to the National Assembly on project milestones, funding status, and risk exposures once implementation begins.