Lagos State Government will likely generate at least N240 billion from the metro rail when it becomes fully operational.
In the wee hours of yesterday, Lagos State Government took delivery of about 20 modern coaches and two motors of its red rail. The coaches were reportedly shipped from Milwaukee USA.
In January 2022, Lagos State Governor, Babajide Sanwolu visited the factory of Talgo Inc, a train manufacturer in Milwaukee where the coaches for the red line train were purchased.
It will be recalled that the Lagos metro train is being constructed in two phases, the red line and the blue line metro rail.
The red line part of the project which is scheduled to fully commence operation within the first quarter (Q1) of 2023 will traverse 37 kilometres.
No doubt, apart from the transportation benefit, many businesses will spring up along the rail corridor while old businesses will be positively impacted.
Meanwhile, Investors King’s investigation shows that Lagos State Government will generate about N240 billion every year from both the red and blue lines of the metro rail.
Both the Red and Blue are expected to lift at least 2.2 million passengers daily when they become fully operational. Using an average price of N300 per trip, Lagos State is expected to generate N660 million every day and a culmination of N240.9 billion in one year.
Early this year, Lagos State Governor, Babajide Sanwolu disclosed when featured on a Channels TV program, Sunrise Daily that the train ticket will cost between N200 to N300 per trip.
“Time is money and we need to move millions of people in Lagos from one corridor to another. The vision is to reduce travel time and gridlock on the road”.
“Instead of you staying one hour on the road, it’s going to take you 20 minutes which comes with a lot of benefits. Affordability is critical, it’s not going to be in the thousands. So, you will still be in your regular N200, N300 per journey and that is what we are looking at”. He said.
Lagos Metro Rail is being constructed by China Civil Engineering and Construction Corporation (CECC).
