OGUN - Government of Nigeria's southwestern Ogun state on Monday signed agreements with a Chinese company for the construction of a railway line that will link major cities in the state and expected to eventually extend to neighboring states.

The project undertaken by China Civil Engineering Construction Corporation (CCECC) is valued at $3.5 billion, according to Ogun state governor Ibikunle Amosun.

Trains can travel fast on the light-rail line in the future, which will reduce the pressure on the highways in the state, Amosun said at the signing ceremony, adding that it will boost local economy and improve people's lives.

The governor said it is imperative to improve transportation network in the state due to a possible "significant rise" in population in the coming years.

The line will have major stop-over at Abeokuta, Ota, Ilaro, Ijebu-Ode, Owode, Idiroko, Agbara, and Sagamu.

Speaking with Xinhua on the sidelines of the ceremony, Chairman of CCECC, Cao Baogang, assured that the company "would offer a high-tech rail system that would boost the economy of the state."

Cao added that local workers will be trained before the completion of the project in order to join the management of the railway line afterwards.

Consul-General of the Chinese Consulate in Lagos, Liu Kan, who attended the event, said China is cooperating with Nigeria in its development in various sectors, and added China's commitment to strengthening bilateral ties.