African $60 Billion High-Speed Rail Project Takes Shape
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One of the largest infrastructure projects in Africa has received a new update that could see construction begin soon
Plans for Nigeria's $60 billion high-speed rail project, which would stretch almost 2,500 miles, were submitted to the government on Tuesday.
Newsweek contacted the De-Sadel Consortium, which is working in collaboration with the government on the project, and the Nigerian Federal Ministry of Transport for more information on the project via email.
Why It Matters
Morocco became in 2018 the first country on the continent to implement a high-speed rail project and it plans on expanding it as part of preparations for the 2030 World Cup, which it will co-host. Nigeria's proposal would make it one of the first countries in the region to benefit from this kind of infrastructure.
What To Know
On Tuesday, a consortium of construction companies and developers based in Nigeria, brought the proposal to the nation's secretary to the Government of the Federation.
The project's $60 billion price tag will be funded by the Asian Development Investment Bank, one of the largest international development institutions in the world, backed by China.
The first phase of the project aims to cover four major cities in Nigeria, including Lagos, Abuja, Kano and Port Harcourt.
George Akume, the secretary to the Government of the Federation, said in a statement that the project would be reliant on international investment, like the kind that China provides, but that the technology was desirable.
A view of the Nigerian Railway Corporation train at the Idu Railway Station during the resumption of Abuja-Kaduna train railway operations in Abuja, Nigeria's capital on December 5, 2022
A view of the Nigerian Railway Corporation train at the Idu Railway Station during the resumption of Abuja-Kaduna train railway operations in Abuja, Nigeria's capital on December 5, 2022
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"This is a country that is business friendly especially under the administration of President Bola Tinubu. Though we need reasonable extent of foreign investments but such partnerships would have to be reliable and credible and beneficial to all partners," he said.
"About the proof of funds, this will be critically scrutinised in line with international practice so that we can be sure of the viability of the bullet train project and the timelines. The high speed trains project is a welcome development. We will look at the proof of funds that has been submitted critically and get back to them. We are going to do business with them."
What People Are Saying
Samuel Uko, CEO of the De-Sadel Consortium, said in a statement: "Today is a very great day in the life of this administration. The high-speed rail bullet train project that we have started 10 years ago has gotten a nod from administration. It is this administration that has given us almost 90 per cent of approvals.
"Today, with our partners, I have just presented the official proof of fund for the project. The fund is coming from the Asian Development Investment Bank ad it is to cover the first phase of the project that cuts across four major cities of Nigeria.
"The rail line is from Lagos to Abuja, to Kano, and from Abuja to Port Harcourt. So this is a very great work that the government have done. The federal government of Nigeria, through the ICRC, approved the outline business case. And the next step now was for us to submit the proof of fund to the government, which we just did. So I believe in the shortest possible time, Nigeria will start enjoying a high-speed rail in Nigeria".
What Happens Next
If approved, the first phase of the project, which costs $55 billion, will commence in the next few years. A full timeline of the project has not yet been published.
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Some of these risks and uncertainties could affect all lines of the company's operations generally while others could more heavily affect a particular line of business. Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to: government policies and actions with respect to the global trade environment including increased and proposed tariffs announced by the U.S. government, and retaliatory trade regulations; the uncertainty of the company's ability to sell products domestically or internationally, continue production at certain international facilities, procure raw materials and components, accurately forecast demand and inventory, manage increased costs of production, absorb or pass on increased pricing, accurately predict financial results and industry trends, and remain competitive based on trade actions, policies and general economic uncertainty; the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, harvest yields, available farm acres, acreage planted, soil conditions, prices for commodities and livestock, input costs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer practices due to slower economic growth or a recession and regional or global liquidity constraints; higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for the company's products and solutions; the company's ability to adapt in highly competitive markets, including understanding and meeting customers' changing expectations for products and solutions, including delivery and utilization of precision technology; housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment; political, economic, and social instability of the geographies in which the company operates, including the ongoing war between Russia and Ukraine and the conflicts in the Middle East; worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and consequently the demand for the company's equipment; investigations, claims, lawsuits, or other legal proceedings, including the lawsuit filed by the Federal Trade Commission (FTC) and the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that the company unlawfully withheld self-repair capabilities from farmers and independent repair providers; 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DEERE & COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS For the Nine Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited 20252024 Cash Flows from Operating Activities Net income$ 3,938$ 5,846 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 258 222 Provision for depreciation and amortization 1,668 1,598 Impairments and other adjustments 29 53 Share-based compensation expense 104 159 Credit for deferred income taxes (102) (125) Changes in assets and liabilities: Receivables related to sales (494) (2,446) Inventories (526) 234 Accounts payable and accrued expenses (717) (1,015) Accrued income taxes payable/receivable (147) 31 Retirement benefits (813) (246) Other 266 (172) Net cash provided by operating activities 3,464 4,139Cash Flows from Investing Activities Collections of receivables (excluding receivables related to sales) 19,712 19,143 Proceeds from maturities and sales of marketable securities 359 333 Proceeds from sales of equipment on operating leases 1,408 1,451 Cost of receivables acquired (excluding receivables related to sales) (18,962) (21,113) Acquisitions of businesses, net of cash acquired (89)Purchases of marketable securities (598) (572) Purchases of property and equipment (852) (1,043) Cost of equipment on operating leases acquired (2,009) (2,165) Collections of receivables from unconsolidated affiliates 334Collateral on derivatives – net 127 390 Other (231) (95) Net cash used for investing activities (801) (3,671)Cash Flows from Financing Activities Net payments in short-term borrowings (original maturities three months or less) (2,060) (992) Proceeds from borrowings issued (original maturities greater than three months) 10,707 15,512 Payments of borrowings (original maturities greater than three months) (7,743) (10,792) Repurchases of common stock (1,136) (3,227) Dividends paid (1,282) (1,202) Other (43) (88) Net cash used for financing activities (1,557) (789)Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 108 (6)Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 1,214 (327) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 7,633 7,620 Cash, Cash Equivalents, and Restricted Cash at End of Period$ 8,847$ 7,293See Condensed Notes to Interim Consolidated Financial Statements. 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Of this amount, $53 million was recorded in "Selling, administrative and general expenses" and $8 million in "Cost of sales." This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets. Discrete Tax Items In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary. Banco John Deere S.A. In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become 50% owner of the company's wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company's incremental risk as it continues to grow in the Brazilian market. The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in "Equity in income of unconsolidated affiliates" within the financial services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in "Other assets" and "Other receivables," respectively. BJD was reclassified as held for sale in the third quarter of 2024, resulting in a net loss of $15 million pretax and after-tax due to the establishment of a $53 million valuation allowance on the assets held for sale and a $38 million reversal of allowance for credit losses. In the first quarter of 2025, a gain of $32 million pretax and after-tax was recorded in "Selling, administrative and general expenses" related to a decrease in valuation allowance. This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. No significant gain or loss was recognized upon completion of the transaction. The equity interest in BJD was valued at $362 million at the deconsolidation date. Employee-Separation Programs In the third quarter of 2024, the company implemented employee-separation programs for the company's salaried workforce in several geographic areas, including the United States, Europe, Asia, and Latin America. The programs' main purpose was to help meet the company's strategic priorities while reducing overlap and redundancy in roles and responsibilities. The programs were largely involuntary in nature with the expense recorded when management committed to a plan, the plan was communicated to the employees, and the employees were not required to provide service beyond the legal notification period. For the limited voluntary employee-separation programs, the expense was recorded in the period in which the employee irrevocably accepted a separation offer. The expenses for the three months and nine months ended July 28, 2024 were recorded in millions of dollars as follows: PPASATCFFSTotal Employee-Separation Programs:Cost of sales$ 18$ 9$ 8 $ 35 Research and development expenses 19 6 126 Selling, administrative and general expenses 25 14 11$ 9 59 Total operating profit decrease$ 62$ 29$ 20$ 9 120 Non-operating profit expenses* 4 Total$ 124 * Relates primarily to corporate expenses. Summary of 2025 and 2024 Special Items The following table summarizes the operating profit impact of the special items recorded in millions of dollars for the three months and nine months ended July 27, 2025 and July 28, 2024. Three MonthsNine Months PPASATCFFSTotalPPASATCFFSTotal 2025 Expense (benefit): Impairment$ 28$ 17$ 16 $ 61$ 28$ 17$ 16 $ 61 BJD measurement$ (32) (32) Total expense (benefit) 28 17 1661 28 17 16 (32) 292024 Expense: BJD measurement $ 15 1515 15 Employee-separation programs 62 29 20 9 120 62 29 20 9 120 Total expense 62 29 20 24 135 62 29 20 24 135Period over period change$ (34)$ (12)$ (4)$ (24)$ (74)$ (34)$ (12)$ (4)$ (56)$ (106) (3) The consolidated financial statements represent the consolidation of all the company's subsidiaries. The supplemental consolidating data in Note 4 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without financial services. Equipment operations include the company's production and precision agriculture operations, small agriculture and turf operations, and construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within financial services. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidatedfinancial statements. DEERE & COMPANY (4) SUPPLEMENTAL CONSOLIDATING DATA STATEMENTS OF INCOME For the Three Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited EQUIPMENTFINANCIALOPERATIONSSERVICESELIMINATIONSCONSOLIDATED20252024202520242025202420252024Net Sales and RevenuesNet sales$ 10,357$ 11,387$ 10,357$ 11,387Finance and interest income 133 155$ 1,433$ 1,537$ (140)$ (231) 1,426 1,461 1 Other income 190 246 111 130 (66) (72) 235 304 2, 3, 4 Total 10,680 11,788 1,544 1,667 (206) (303) 12,018 13,152Costs and ExpensesCost of sales 7,578 7,855 (8) (7) 7,570 7,848 4 Research and development expenses 556 567 556 567Selling, administrative and general expenses 999 962 220 318 (2) (2) 1,217 1,278 4 Interest expense 102 91 720 812 (28) (63) 794 840 1 Interest compensation to Financial Services 112 168 (112) (168) 1 Other operating expenses (8) (16) 345 343 (56) (63) 281 264 3, 4, 5 Total 9,339 9,627 1,285 1,473 (206) (303) 10,418 10,797Income before Income Taxes 1,341 2,161 259 194 1,600 2,355Provision for income taxes 274 583 65 42 339 625Income after Income Taxes 1,067 1,578 194 152 1,261 1,730Equity in income (loss) of unconsolidated affiliates (1)11 1 10 1Net Income 1,066 1,578 205 153 1,271 1,731Less: Net loss attributable to noncontrolling interests (18) (3) (18) (3)Net Income Attributable to Deere & Company$ 1,084$ 1,581$ 205$ 153$ 1,289$ 1,7341 Elimination of intercompany interest income and expense. 2 Elimination of equipment operations' margin from inventory transferred to equipment on operating leases. 3 Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets. 4 Elimination of intercompany service revenues and fees. 5 Elimination of financial services' lease depreciation expense related to inventory transferred to equipment on operating leases. DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF INCOME For the Nine Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited EQUIPMENTFINANCIALOPERATIONSSERVICESELIMINATIONSCONSOLIDATED20252024202520242025202420252024Net Sales and RevenuesNet sales$ 28,338$ 35,484$ 28,338$ 35,484Finance and interest income 351 441$ 4,268$ 4,466$ (386)$ (700) 4,233 4,207 1 Other income 580 732 350 341 (211) (192) 719 881 2, 3, 4 Total 29,269 36,657 4,618 4,807 (597) (892) 33,290 40,572Costs and ExpensesCost of sales 20,239 24,226 (24) (21) 20,215 24,205 4 Research and development expenses 1,631 1,664 1,631 1,664Selling, administrative and general expenses 2,761 2,844 632 771 (6) (7) 3,387 3,608 4 Interest expense 282 314 2,206 2,354 (80) (190) 2,408 2,478 1 Interest compensation to Financial Services 306 510 (306) (510) 1 Other operating expenses (47) 76 1,045 1,018 (181) (164) 817 930 3, 4, 5 Total 25,172 29,634 3,883 4,143 (597) (892) 28,458 32,885Income before Income Taxes 4,097 7,023 735 664 4,832 7,687Provision for income taxes 752 1,700 153 145 905 1,845Income after Income Taxes 3,345 5,323 582 519 3,927 5,842Equity in income (loss) of unconsolidated affiliates (4)15 4 11 4Net Income 3,341 5,323 597 523 3,938 5,846Less: Net loss attributable to noncontrolling interests (24) (9) (24) (9)Net Income Attributable to Deere & Company$ 3,365$ 5,332$ 597$ 523$ 3,962$ 5,8551 Elimination of intercompany interest income and expense. 2 Elimination of equipment operations' margin from inventory transferred to equipment on operating leases. 3 Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets. 4 Elimination of intercompany service revenues and fees. 5 Elimination of financial services' lease depreciation expense related to inventory transferred to equipment on operating leases. DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) CONDENSED BALANCE SHEETS (In millions of dollars) Unaudited EQUIPMENTFINANCIALOPERATIONSSERVICESELIMINATIONSCONSOLIDATEDJuly 27Oct 27 July 28July 27Oct 27 July 28July 27Oct 27 July 28July 27Oct 27 July 28202520242024202520242024202520242024202520242024AssetsCash and cash equivalents $ 6,641$ 5,615$ 5,385$ 1,939$ 1,709$ 1,619 $ 8,580$ 7,324$ 7,004Marketable securities 240 125 155 1,167 1,029 9851,407 1,154 1,140Receivables from Financial Services 3,649 3,043 3,951 $ (3,649)$ (3,043)$ (3,951)6 Trade accounts and notes receivable – net 1,335 1,257 1,150 7,064 6,225 8,890 (2,296) (2,156) (2,571) 6,103 5,326 7,469 7 Financing receivables – net 84 78 82 43,846 44,231 43,81443,930 44,309 43,896Financing receivables securitized – net 1 2 2 7,947 8,721 8,2727,948 8,723 8,274Other receivables 2,013 2,193 1,821 867 427 494 (54) (75) (45) 2,826 2,545 2,270 7 Equipment on operating leases – net 7,512 7,451 7,1187,512 7,451 7,118Inventories 7,713 7,093 7,696 7,713 7,093 7,696Property and equipment – net 7,680 7,546 7,058 33 34 347,713 7,580 7,092Goodwill 4,209 3,959 3,960 4,209 3,959 3,960Other intangible assets – net 926 999 1,030 926 999 1,030Retirement benefits 3,092 2,839 3,047 92 83 80 (2) (1) (1) 3,182 2,921 3,126 8 Deferred income taxes 2,471 2,262 2,192 44 43 35 (306) (219) (329) 2,209 2,086 1,898 9 Other assets 2,357 2,194 2,236 1,211 715 675 (9) (3) (8) 3,559 2,906 2,903Assets held for sale 2,944 2,965 2,944 2,965Total Assets $ 42,411$ 39,205$ 39,765$ 71,722$ 73,612$ 74,981$ (6,316)$ (5,497)$ (6,905)$ 107,817$ 107,320$ 107,841Liabilities and Stockholders' Equity LiabilitiesShort-term borrowings $ 461$ 911$ 983$ 14,146$ 12,622$ 14,311 $ 14,607$ 13,533$ 15,294Short-term securitization borrowings 2 1 7,610 8,429 7,8687,610 8,431 7,869Payables to Equipment Operations3,649 3,043 3,951$ (3,649)$ (3,043)$ (3,951)6 Accounts payable and accrued expenses 12,795 13,534 13,880 3,146 3,243 3,141 (2,359) (2,234) (2,624) 13,582 14,543 14,397 7 Deferred income taxes 393 434 420 402 263 390 (306) (219) (329) 489 478 481 9 Long-term borrowings 8,789 6,603 6,592 35,640 36,626 36,10044,429 43,229 42,692Retirement benefits and other liabilities 1,767 2,250 2,048 71 105 109 (2) (1) (1) 1,836 2,354 2,156 8 Liabilities held for sale 1,827 1,803 1,827 1,803Total liabilities 24,205 23,734 23,924 64,664 66,158 67,673 (6,316) (5,497) (6,905) 82,553 84,395 84,692Redeemable noncontrolling interest 84 82 84 84 82 84Stockholders' EquityTotal Deere & Company stockholders' equity 25,175 22,836 23,062 7,058 7,454 7,308 (7,058) (7,454) (7,308) 25,175 22,836 23,062 10 Noncontrolling interests 5 7 3 5 7 3Financial Services' equity (7,058) (7,454) (7,308)7,058 7,454 7,30810 Adjusted total stockholders' equity 18,122 15,389 15,757 7,058 7,454 7,30825,180 22,843 23,065Total Liabilities and Stockholders' Equity $ 42,411$ 39,205$ 39,765$ 71,722$ 73,612$ 74,981$ (6,316)$ (5,497)$ (6,905)$ 107,817$ 107,320$ 107,8416 Elimination of receivables / payables between equipment operations and financial services. 7 Primarily reclassification of sales incentive accruals on receivables sold to financial services. 8 Reclassification of net pension assets / liabilities. 9 Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions. 10 Elimination of financial services' equity. DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF CASH FLOWS For the Nine Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited EQUIPMENTFINANCIALOPERATIONSSERVICESELIMINATIONSCONSOLIDATED20252024202520242025202420252024Cash Flows from Operating ActivitiesNet income$ 3,341$ 5,323$ 597$ 523$ 3,938$ 5,846Adjustments to reconcile net income to net cash provided by operating activities:Provision for credit losses 18 10 240 212 258 222Provision for depreciation and amortization 965 932 804 773$ (101)$ (107) 1,668 1,598 11 Impairments and other adjustments 61(32) 53 29 53Share-based compensation expense 104 159 104 159 12 Distributed earnings of Financial Services 1,066 250 (1,066) (250) 13 Provision (credit) for deferred income taxes (242) (49) 140 (76) (102) (125)Changes in assets and liabilities:Receivables related to sales (66) 106 (428) (2,552) (494) (2,446) 14, 16 Inventories (423) 391 (103) (157) (526) 234 15 Accounts payable and accrued expenses (646) (924) 69 212 (140) (303) (717) (1,015) 16 Accrued income taxes payable/receivable (89) 13 (58) 18 (147) 31Retirement benefits (770) (241) (43) (5) (813) (246)Other 123 (109) 182 44 (39) (107) 266 (172) 11, 12, 15 Net cash provided by operating activities 3,338 5,702 1,899 1,754 (1,773) (3,317) 3,464 4,139Cash Flows from Investing ActivitiesCollections of receivables (excluding receivables related to sales) 20,178 19,826 (466) (683) 19,712 19,143 14 Proceeds from maturities and sales of marketable securities 27 56 332 277 359 333Proceeds from sales of equipment on operating leases 1,408 1,451 1,408 1,451Cost of receivables acquired (excluding receivables related to sales) (19,189) (21,395) 227 282 (18,962) (21,113) 14 Acquisitions of businesses, net of cash acquired (89)(89) Purchases of marketable securities (133) (220) (465) (352) (598) (572)Purchases of property and equipment (851) (1,041) (1) (2) (852) (1,043)Cost of equipment on operating leases acquired (2,148) (2,377) 139 212 (2,009) (2,165) 15 Decrease in investment in Financial Services11(11) 17 Increase in trade and wholesale receivables (807) (3,255) 807 3,255 14 Collections of receivables from unconsolidated affiliates 189145334 Collateral on derivatives – net 4123 390 127 390Other (75) (88) (156) (8)1 (231) (95)Net cash used for investing activities (928) (1,282) (580) (5,445) 707 3,056 (801) (3,671)Cash Flows from Financing ActivitiesNet proceeds (payments) in short-term borrowings (original maturities three months or less) 294 81 (2,354) (1,073) (2,060) (992)Change in intercompany receivables/payables (660) 558 660 (558)Proceeds from borrowings issued (original maturities greater than three months) 2,188 115 8,519 15,397 10,707 15,512Payments of borrowings (original maturities greater than three months) (863) (1,061) (6,880) (9,731) (7,743) (10,792)Repurchases of common stock (1,136) (3,227) (1,136) (3,227)Capital returned to Equipment Operations(11)11 17 Dividends paid (1,282) (1,202) (1,066) (250) 1,066 250 (1,282) (1,202) 13 Other (25) (37) (18) (51) (43) (88)Net cash provided by (used for) financing activities (1,484) (4,773) (1,139) 3,723 1,066 261 (1,557) (789)Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 96 12 12 (18) 108 (6)Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 1,022 (341) 192 14 1,214 (327)Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 5,643 5,755 1,990 1,865 7,633 7,620Cash, Cash Equivalents, and Restricted Cash at End of Period$ 6,665$ 5,414$ 2,182$ 1,879$ 8,847$ 7,29311 Elimination of depreciation on leases related to inventory transferred to equipment on operating leases. 12 Reclassification of share-based compensation expense. 13 Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations operating activities. 14 Primarily reclassification of receivables related to the sale of equipment. 15 Reclassification of direct lease agreements with retail customers. 16 Reclassification of sales incentive accruals on receivables sold to financial services. 17 Elimination of change in investment from equipment operations to financial services. 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