The China Development Bank (CDB) has approved a loan of $254.76 million (€245 million) to support the ongoing Kano-Kaduna railway project in Nigeria. This development ensures the seamless continuation of construction work on the vital railway line, according to a statement released on the bank’s website on Tuesday.
The 203-kilometre standard-gauge railway will connect Kano, a bustling commercial hub in northern Nigeria, to Abuja, the nation’s capital. Once operational, the railway will enhance regional connectivity, offering a safer and more efficient transportation option for residents.
Beyond improving transport, the project is expected to stimulate economic growth by fostering the development of industries along the railway corridor. It will also create significant employment opportunities during both the construction phase and operational stages.
Key Details
- The railway project is part of the Third Belt and Road Forum for International Cooperation.
- Execution is managed by the China Civil Engineering Construction Corporation (CCECC).
- CDB has pledged to work closely with the Nigerian government to ensure smooth disbursement of funds and effective management of subsequent project phases.
The project initially faced a setback when the China Exim Bank withdrew its funding commitment. The CDB stepped in as the new financier, reaffirming its dedication to supporting Nigeria’s infrastructure development.
The bank stated, “Going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.”
Federal Government’s Commitment
President Bola Tinubu has reiterated the government’s determination to complete the railway project. Last year, he assured Nigerians that the Ibadan-Abuja-Kaduna-Kano railway project would be finished to satisfaction.
Also, In line with this, about N44.4 billion was allocated in this year’s budget to advance the completion of the Abuja-Kaduna railway, Lagos-Ibadan railway, and other rail projects across the country.
Furthermore, The announcement coincides with the upcoming visit of China’s Foreign Minister, Wang Yi, to Nigeria. Scheduled to arrive in Abuja on Wednesday, Yi will engage in high-level discussions aimed at reinforcing the bilateral relationship between Nigeria and China.
The Kano-Kaduna railway project stands as a testament to the deepening partnership between both nations, aligning with Nigeria’s infrastructure goals and China’s global Belt and Road Initiative.
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