Nigeria’s Gas Anchors $1tn Rail Corridor to Power Africa’s Energy Access

Nigeria is positioning its vast natural gas resources at the centre of a bold continental energy push as it joins Ethiopia to drive a new cross-border gas supply network aimed at easing Africa’s persistent energy shortages.

The two countries have launched a large-scale infrastructure proposal designed to reshape regional energy access, industrial growth and environmental outcomes, with rail transport promoted as a practical alternative to politically and technically complex cross-border gas pipelines.

Unveiled in Addis Ababa, the Gas-by-Rail Economic Corridor Initiative sets out plans for a continent-wide freight rail system to transport liquefied natural gas across Sub-Saharan Africa, while reducing dependence on woodfuel and other high-emission energy sources.

Estimated to cost between $500 billion and $1 trillion, the initiative ranks among the most ambitious infrastructure proposals ever advanced in Africa. Its backers describe it as a private-sector-driven response to the continent’s chronic infrastructure funding gap, which development institutions estimate at $68 billion to $100 billion annually.

Advertisement

By focusing on commercially viable energy and freight demand, the promoters argue the project can attract long-term capital, limit pressure on public finances, and unlock new industrial opportunities across multiple regions.

Nigeria’s participation underscores its strategic role as Africa’s largest natural gas holder and a leading LNG supplier. Under the proposed corridor model, gas produced in Nigeria and other producing countries would be liquefied, densified and transported by rail to inland markets that remain beyond the reach of pipelines or coastal import terminals.

Supporters of the project say this flexibility could speed up gas adoption in landlocked countries and in regions where insecurity, terrain, or weak infrastructure have stalled pipeline development, while strengthening Nigeria’s position as a regional energy hub.

The initiative also aligns with broader continental priorities under the African Continental Free Trade Area. By lowering energy and transport costs, the rail corridor is expected to support regional value chains, boost intra-African trade and reduce the high cost of moving goods across borders.

Advertisement

Project proponents estimate that the construction and operation of the network could generate more than 70 million jobs by 2050, spanning engineering, manufacturing, operations and related services.

Promoted by Ethiopia’s Ministry of Transport and Logistics in partnership with Nigeria-based Insight Dynamic Resources, the proposal envisions a 73,500-kilometre rail network linking 40 countries.

Sponsors describe the system as a “virtual pipeline” that would move densified LNG by rail, bypassing the political, security and engineering challenges that have historically delayed or derailed transnational gas pipeline projects in Africa.