The China Development Bank (CDB) has confirmed the approval of a $254.76 million (€245 million) loan to advance the Kano-Kaduna railway project in Nigeria.
In an announcement posted on its official website Tuesday, the CDB emphasized that this financial support will facilitate the uninterrupted progression of the construction work.
The statement on the website read, “The China Development Bank has recently approved a loan of 245 million euros ($254.76 million) to the Kano-Kaduna railway project in Nigeria, ensuring the continued smooth operation of the development.”
The railway project, a 203-kilometer standard-gauge line, will connect Kano, a prominent commercial hub in northern Nigeria, with Abuja, the nation’s capital.
Once completed, the railway is expected to provide a safer, more efficient mode of transportation for local residents, while enhancing regional connectivity.
In addition to improving transportation, the project is anticipated to drive economic growth by promoting the establishment of industries along the railway corridor. It will also generate significant employment opportunities both during construction and in the subsequent operational phase.
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Listed as a key cooperative initiative under the Third Belt and Road Forum for International Cooperation, the Kano-Kaduna railway project is being carried out by the China Civil Engineering Construction Corporation (CCECC), with financial backing from the China Development Bank.
According to the CDB, the construction is progressing smoothly, with the bank reaffirming its dedication to collaborating closely with the Nigerian government to ensure proper fund disbursement and efficient management during the next stages of the project.
The China Exim Bank was initially slated to finance the project but withdrew, leading to the CDB stepping in as the new financier. The CDB further commented, “We will work in close coordination with our Nigerian counterparts to ensure that subsequent loans are disbursed smoothly, and that post-loan management is effectively handled.”
In line with the ongoing infrastructure development, last year, President Bola Tinubu assured that the Ibadan-Abuja-Kaduna-Kano railway would be completed to high standards. The Federal Government has set its sights on completing the Kaduna-Kano rail section by year-end.
A budget of approximately N44.4 billion has been allocated this year for the completion of various railway projects, including the Abuja-Kaduna and Lagos-Ibadan rail lines.
Meanwhile, the Foreign Minister of the People’s Republic of China, Wang Yi, is expected to arrive in Abuja on Wednesday for an official visit. Yi, who is a member of the Political Bureau of the Central Committee of the Communist Party of China, will engage in talks aimed at further strengthening the relationship between Nigeria and China.
