Obasanjo stated this at the Iddo terminus of the Nigerian Railway Corporation while inaugurating the $449m Iddo - Ijoko Light Rail Mass Transit Project being coordinated by the Lagos Mega City Development Authority.  The President explained that his administration established the LMCDA when it realised that the Lagos State Government alone could not solve the various problems confronting the former capital of Nigeria.

He said Lagos, which was fast assuming the status of a mega city, already had sanitation problem and chaotic traffic situation, among others, which required an urgent solution.  The situation, according to him, informed his decision to involve Ogun State in the tripartite project that would effectively address the environmental and infrastructural problems affecting the city.

He said the Federal Government would contribute 45 per cent of the cost of executing the project while Lagos and Ogun states would contribute 40 and 15 per cent respectively.  Already, Obasanjo said the Federal Executive Council had ratified a proposal from the LMCDA to put in place modalities to raise fund from the Nigerian Stock Exchange to finance the project.

He also said his administration was doing everything possible to ensure the passage of a bill by the National Assembly that would give legal backing to the LMCDA and expressed the hope that the incoming administration would continue with the project.

The President also said the project would cover Ijoko and Kajola in Ogun State, because most Lagos workers live there.  He appealed to local and foreign investors to take advantage of the project being a viable one that would yield instant returns on investment.

Also speaking on the occasion, chairman of the LMCDA, Prof. Akin Mabogunje, noted that the World Bank sponsored Lagos Area Metropolitan Transport Authority was also working under the project to provide light rail transit for the people of Alimosho and Okokomaiko.

The Governor of Ogun State, Otunba Gbenga Daniel, said the current regional approach remained the best solution to the many problems confronting Lagos.