The China Development Bank (CDB) has approved a loan of $254.76 million (€245 million) to support the construction of Nigeria’s Kano-Kaduna railway project. The loan is aimed at providing financial support for the smooth progress of the project, which is expected to enhance regional connectivity and stimulate economic activity.
The Kano-Kaduna railway, with a total length of 203 kilometers, is a standard-gauge railway that will provide direct rail connectivity between Kano and Abuja. Once completed, the railway will offer residents a safe, efficient, and convenient transportation alternative, significantly enhancing regional connectivity.
According to the CDB, the loan is part of the bank’s commitment to supporting Nigeria’s infrastructure development. The project is being executed by the China Civil Engineering Construction Corporation (CCECC), with financing provided by the CDB.
The CDB emphasized its commitment to continued collaboration with the Nigerian government to ensure the timely disbursement of funds and effective management of subsequent phases of the project. The bank noted that it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.
The loan approval comes after the China Exim Bank withdrew its funding for the project. In 2023, the Minister of Transportation, Saidu Alkali, disclosed that China has committed to funding the Ibadan-Abuja and Kaduna-Kano sections of the Lagos-Kano railway under the Belt and Road Initiative.
The Federal Government has budgeted N44.4 billion for the completion of the Abuja-Kaduna Railway project, Lagos-Ibadan railway, and other railway projects across the country. The government has also announced plans to construct a speed rail from Abuja to Lagos before the end of the year, with two organizations indicating interest in constructing the speed rail through a Public Private Partnership (PPP) agreement.
The Permanent Secretary in the Federal Ministry of Transportation, Mr. Adeleye Adeoye, said the construction of the speed rail would start as soon as the Infrastructure Concession Regulatory Commission (ICRC) completes its due process and gives the ministry the green light.
The completion of the Kano-Kaduna railway project is expected to have a significant impact on the region’s economy and transportation infrastructure. With the loan approval from the CDB, the project is expected to progress smoothly, with completion slated for 2025.
