Enugu Approves N10bn Funding For First Phase Of 135.4km Rail Project

The allocation was disclosed by the Commissioner for Budget and Planning, Chris-Roberts Ozongwu, while presenting a detailed breakdown of the 2026 appropriation to journalists. The rail funding forms part of a wider spending proposal of N1.62 trillion presented by Governor Peter Mbah to the Enugu State House of Assembly on December 2, tagged the “Budget of Renewed Momentum.”

The proposed budget represents a 66.5 per cent increase over the N971 billion revised 2025 budget and is considered the largest in the South-East region. It comprises N1.3 trillion in capital expenditure, accounting for 80 per cent of total spending, while recurrent expenditure stands at N321.2 billion, representing 20 per cent.

Ozongwu explained that the rail project aligns with Governor Mbah’s campaign pledge to establish a multimodal transport system that integrates rail, tram, inland waterways and road infrastructure. He added that the rail line is planned to extend toward neighbouring states to enhance regional connectivity, particularly across the South-East.

In the aviation sector, the state government plans to expand the fleet of its newly launched airline, Enugu Air, from three aircraft to six before the end of the year, with a long-term target of 20 planes by the close of 2026. Ozongwu noted that the airline, which commenced operations in July, has shown strong commercial potential.

Further transport-related investments include a N10 billion equity contribution toward the concession of Akanu Ibiam International Airport, a move consistent with the administration’s objective of transforming Enugu into a regional aviation and logistics hub in West Africa.

The commissioner also revealed that another N10 billion has been allocated for a vehicle manufacturing initiative aimed at assembling automobiles within the state. The programme is expected to produce about 2,100 taxis to support youth empowerment schemes and the operations of the Distress Response Squad, the state’s special security unit.

Ozongwu expressed confidence that the 2026 budget would outperform that of 2025, noting that the government operates with a private sector-oriented mindset. He added that the allocation of over half of the budget to the economic sector and more than 40 per cent to the social sector reflects the administration’s commitment to private sector-led growth and human development.

He assured that the state possesses the technical capacity, human resources and financial strategy to deliver improved performance in the coming year, while encouraging investors to take advantage of what he described as a growing climate of stability and opportunity in Enugu State.