The Nigerian Senate has announced the China Development Bank as the new financier for the Kaduna-Kano rail modernization project, setting the stage for its completion.

This development follows the withdrawal of the previous financier, China Exim Bank, in 2020 due to complications arising from the COVID-19 pandemic. Dada Olusegun, Special Assistant to President Bola Tinubu on Social Media, confirmed the funding shift in an official statement.

The Kaduna-Kano railway, spanning 203 kilometers, is a standard-gauge line designed to connect Kano to Nigeria’s capital, Abuja. The railway project is a crucial segment of the broader Ibadan-Abuja-Kaduna-Kano line, a key infrastructure initiative aimed at improving transportation and trade across Nigeria.

In January, the China Development Bank approved $255 million in funding for the Kaduna-Kano rail project, which is currently under construction by the China Civil Engineering Construction Corporation (CCECC). The project will feature new stations at Rigachukun, Zaria, and Kano and will integrate with the Lagos-Ibadan and Kano-Maradi rail lines, further enhancing connectivity across the region.

Reaffirming its support for the project, the China Development Bank highlighted its potential to improve regional transportation. “Once completed, it will provide direct rail connectivity between Kano, an important northern city in Nigeria, and the country’s capital, Abuja, offering local residents a safe, efficient, and convenient mode of transportation,” the bank stated.

The $973 million Kaduna-Kano rail project has faced delays due to funding challenges. Transportation Minister Saidu Alkali previously noted that China is supporting the Kaduna-Kano and Ibadan-Abuja segments of the Lagos-Kano railway under the Belt and Road Initiative.

Most of these projects follow the EPC+F model (Engineering, Procurement, Construction, and Financing), requiring 15% counterpart funding from Nigeria’s federal government, with 85% secured through loans. However, financial institutions have been hesitant due to concerns about the high risks associated with railway projects.

Despite these challenges, President Bola Tinubu has reiterated his commitment to completing the Ibadan-Abuja-Kaduna-Kano railway project, continuing the work initiated by former President Muhammadu Buhari to modernize Nigeria’s railway infrastructure.

“The Ibadan-Abuja-Kaduna-Kano railway project will be completed to the satisfaction of Nigeria and West Africa at large,” Tinubu emphasized.

The Federal Government has set a target for the Kaduna-Kano rail line to be completed by the end of this year. Additionally, plans are in place to commence a high-speed rail project connecting Abuja to Lagos within the same timeframe.