The China Development Bank has approved a loan of $254.76 million (€245 million) for Nigeria’s Kano-Kaduna railway project, marking a significant boost to the ongoing infrastructure development in the country.
The loan, announced by the bank on Tuesday, is expected to provide essential financial support for the completion of the standard-gauge rail line, which spans 203 kilometers.
The railway will link Kano, a major commercial center in northern Nigeria, to Abuja, the nation’s capital. Once completed, the project is expected to improve regional connectivity, providing a safer, more efficient, and convenient transportation option for residents.
Beyond enhancing mobility, the Kano-Kaduna railway is set to stimulate economic growth along its route. The project is anticipated to boost local industries and generate job opportunities during both its construction and operational phases.
The railway project is part of the broader Belt and Road Initiative, a global development strategy championed by China. Construction is being carried out by the China Civil Engineering Construction Corporation, with funding provided by CDB.
The bank has expressed confidence that the project is progressing smoothly and has committed to continued collaboration with the Nigerian government to ensure the timely release of funds and efficient management of the project’s next phases.
Looking ahead, the CDB plans to work closely with Nigerian partners to ensure smooth disbursements of future loans and the effective oversight of the project post-completion.
The Kano-Kaduna railway project is a key part of Nigeria’s broader efforts to improve its rail network. Last year, Nigeria’s Minister of Transportation, Saidu Alkali, revealed that China had committed to financing the Ibadan-Abuja and Kaduna-Kano sections of the Lagos-Kano railway as part of the Belt and Road Initiative.
Many of these railway projects are being funded under an EPC+F (Engineering, Procurement, Construction, and Financing) model, with 15% counterpart funding from Nigeria’s federal government and the remaining 85% to be sourced through loans. Alkali also noted the challenges in securing funding from other banks due to perceived risks associated with railway projects, which has led Nigeria to seek assistance from China.
In a recent update, President Bola Tinubu assured that the Ibadan-Abuja-Kaduna-Kano railway project would be completed to the satisfaction of Nigeria and West Africa as a whole. The federal government has also committed to completing the Kaduna-Kano rail line by the end of this year.
The government is also planning to construct a high-speed rail line from Abuja to Lagos, with two organizations expressing interest in a Public-Private Partnership arrangement to fund the project. The construction is expected to begin once the Infrastructure Concession Regulatory Commission completes its due process.
The Federal Government has earmarked N44.4 billion for the completion of the Abuja-Kaduna, Lagos-Ibadan, and other railway projects across the country.
