The China Development Bank (CDB) has approved a $254.76 million (€245 million) loan to support the Kano-Kaduna railway project in Nigeria, ensuring continued progress on the crucial infrastructure.
The bank announced the loan approval on its website on Tuesday, stating, “China Development Bank has recently granted a loan of 245 million euros ($254.76 million) to the Kano-Kaduna railway project in Nigeria, providing financial support for the smooth progress of the project.”
The Kano-Kaduna railway, a standard-gauge line spanning 203 kilometers, is designed to connect Kano, one of northern Nigeria’s major commercial hubs, with the capital city, Abuja. Once operational, the railway is expected to provide a safer and more efficient means of transport, enhance regional connectivity, and promote economic growth along its corridor.
The railway project is anticipated to spur industrial development along its route and generate significant employment opportunities during its construction and operations. Highlighting its importance, the project has been recognized as a key practical cooperation initiative under the Third Belt and Road Forum for International Cooperation.
The China Civil Engineering Construction Corporation is responsible for executing the project, with financing now being handled by the CDB following the withdrawal of the initial financier, the China Exim Bank.
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A spokesperson for the CDB affirmed its commitment to Nigeria, saying, “Going forward, [the bank] will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.”
The Nigerian government has expressed optimism about the railway’s completion. Last year, President Bola Tinubu assured Nigerians that the Ibadan-Abuja-Kaduna-Kano railway would meet expectations. The government aims to complete the Kaduna to Kano section by the end of this year, with N44.4 billion allocated for this and other railway projects, including the Lagos-Ibadan railway.
The project’s financing aligns with broader efforts to strengthen ties between Nigeria and China. The Chinese Foreign Minister, Wang Yi, is set to visit Abuja on Wednesday to discuss bilateral cooperation. Yi, a member of the Political Bureau of the Central Committee of the Communist Party of China, will engage in high-level talks during his official visit.
The Kano-Kaduna railway is not just an infrastructure project but a vital link for Nigeria’s economic transformation. Once completed, it promises to reshape transportation and commerce, making life easier for millions of Nigerians.