The 2025 budget proposal of the Federal Ministry of Transportation has sparked significant controversy due to its allocation of N146.14 billion, representing 57% of its total budget of N256.73 billion, to the Lagos Green Line Rail Project. This substantial allocation has raised concerns about the prioritization of a single state project over other critical national transportation needs and fueled allegations of favoritism towards Lagos State by the Tinubu administration. Critics argue that this disproportionate allocation will hinder the ministry’s ability to address pressing transportation infrastructure challenges across the country, particularly the dire state of road networks.
The funding mechanism for the Lagos Green Line Rail Project has further intensified the controversy. The funds are slated to be transferred from the Federal Ministry of Finance Incorporated (MOFI) to the Ministry of Transportation. MOFI’s mandate is to invest in Nigeria’s future, raising questions about the appropriateness of using its resources for a state-specific project. Critics argue that MOFI should raise its own counterpart funding from the market rather than relying on the Ministry of Transportation’s budget. The decision to use MOFI for this project and the lack of similar funding mechanisms for other states have fueled accusations of unequal treatment and raised concerns about transparency in the allocation of federal resources.
Public policy analysts have voiced strong criticism of the budgetary allocation. Waziri Adio, for example, questioned the justification for using the Ministry of Transportation’s budget to provide counterpart funding for a MOFI-overseen project. He also highlighted the disproportionate size of the allocation compared to the ministry’s overall capital budget and questioned the rationale behind prioritizing this specific project over other pressing national transportation needs. Furthermore, he raised concerns about the precedent this sets for other states seeking federal funding for similar projects. The lack of clear explanations for these decisions has exacerbated public skepticism and fueled accusations of biased resource allocation.
Beyond the Lagos Green Line allocation, other aspects of the Ministry of Transportation’s budget have drawn criticism. The allocation of N1 billion for the procurement of vehicles, including a Land Cruiser and a Toyota Prado, has been deemed excessive and insensitive given the country’s economic challenges. Similarly, allocations for performance management systems, annual press conferences, and the digitization of agreements, totaling hundreds of millions of Naira, have been questioned in light of the more pressing infrastructure needs across the country. These allocations appear to prioritize administrative expenses over crucial infrastructure development, further fueling public discontent.
The Ministry’s budget also includes allocations for office construction, monitoring and evaluation of capital projects, sporting equipment, and e-governance initiatives. While these initiatives may have some merit, their prioritization in the face of critical infrastructure deficits has drawn criticism. The allocation of N100 million for monitoring and evaluation of capital projects raises concerns about duplication of expenses, as another N100 million has already been earmarked for the same purpose. This apparent redundancy raises questions about budgetary efficiency and the judicious use of public funds.
Lagos State Governor Babajide Sanwo-Olu has defended the Green Line project, emphasizing its transformative potential for the state’s transportation landscape. He highlighted the project’s capacity to carry over 500,000 passengers daily, its role in connecting key areas of Lagos, and its potential to stimulate economic growth. He further emphasized the collaboration with MOFI and China Harbour Engineering Company in financing and operating the project. While acknowledging the benefits touted by the governor, critics argue that prioritizing Lagos projects at the expense of national transportation needs undermines equitable development and exacerbates regional disparities. The focus on a single state’s transportation infrastructure raises concerns about a balanced approach to national development and the equitable distribution of resources across all states.