Construction company secures contract in US$2bn rail project in Nigeria

Mota-Engil, a construction company based in Portugal, has announced that it has secured an €840 million ($920.05 million) contract to provide and finance railway rolling stock in Nigeria. This agreement strengthens Mota-Engil’s presence in Africa and contributes to its order book in the region, according to Reuters.

The contract is said to be a significant component of a larger rail construction project valued at US$2 billion (Photo: AdobeStock)

The contract is said to be a significant component of a larger rail construction project valued at US$2 billion, which aims to connect Nigeria with its neighbouring country, Niger, in the northern region.

The 284km railway track will run between Kano, the capital of the northern state of Kano, and Maradi, the second largest city in Niger and a centre of that country’s developing oil industry. It will also run east from Kano to Dutse, the capital of Jigawa State.

In a statement, Mota-Engil emphasized that this contract underscores the Nigerian government’s commitment to enhancing regional connectivity and promoting economic development in the northern part of the country. It also highlights the capacity of the Mota-Engil Group to support these development efforts in Africa.

In addition to this railway project, Mota-Engil, along with two Chinese ventures, was previously shortlisted by the Lagos state government in Nigeria for a US$2.5 billion bridge project in November.

The rail construction initiative is part of the government’s broader plan to build an extensive railway network across Nigeria, addressing the longstanding issue of inadequate transport infrastructure that has hindered economic growth for many years.