The Nigerian Government has announced plans to modernise and expand its ageing railway network - at a cost of $60bn.

The plan, which will run over the next 25 years, was unveiled by Transport Minister Ojo Maduekwe.

Nigeria is the most underdeveloped railway nation in the world

Transport Minister Ojo Maduekwe

He said 80% of the money would come from both local and foreign investors with the government providing the rest.

Nigeria's railways were built by the British over 100 years ago with two lines running from the north of the country to the coastal south.

But successive governments have, since independence in 1960, deprived the railways of much needed investment, resulting in lack of capacity and under-use.

The announcement comes at a time when rail workers are on strike and have just rejected a government pay offer, vowing instead to continue with their industrial action.

Cautious optimism

A Chinese civil aviation firm was contracted by the late dictator General Sani Abacha to regenerate the system.

But the contract received widespread criticism.

The Chinese company had reportedly supplied 400 wagons, 20 rail buses and 150 coaches plus 50 locomotives.

The country could not progress without a functioning rail network, Mr Maduekwe said.

"Nigeria is the most underdeveloped railway nation in the world." A BBC correspondent in Abuja says Nigerians will view the plan with cautious optimism.

She adds that a total rebuilding of the system is required to bring to life an entirely decayed network.