The Nigerian government and a Chinese company have entered into an agreement for the construction of a Standard Gauge Railway Line.

The rail will run from south west to the north west region.

The $6.68 billion contract for the Ibadan–Kaduna Segment of the Lagos–Kano Standard Gauge Railway Line was signed on Tuesday by the Minister of Transport, Rotimi Amaechi, on behalf of the Nigerian government.

Nigeria and china company sign $6.68b Rail Project
The Minister Of Transport, Mr Chibuike Amechi and representative of the China company

The project would be handled by the China Civil Engineering Construction Corporation.

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The contract is a major milestone in the reform of the rail system in Nigeria that is near total collapse due to poor maintenance.

The signing of the contract was announced by the Presidency on its Twitter handle.

However, the time frame for the project was not announced.