China Bank Loans Nigeria $254.76M for Kano-Kaduna Railway Project

The China Development Bank (CDB) has approved a loan of $254.76 million (€245 million) to support the ongoing construction of the Kano-Kaduna railway project in Nigeria. The announcement, made on Tuesday via the bank’s official website, emphasizes that this financial support will ensure the uninterrupted progress of the project.

The CDB stated, “The bank has recently granted a loan of €245 million ($254.76 million) to the Kano-Kaduna railway project, providing vital financial assistance for its smooth advancement.”

This railway, a 203-kilometer standard-gauge line, will connect Kano, a major commercial hub in northern Nigeria, to Abuja, the nation’s capital. Upon completion, the project will offer a safer, more efficient transportation option for residents and enhance regional connectivity.

The Kano-Kaduna railway is also expected to drive economic growth by encouraging industrial development along its route. Furthermore, the project will create numerous jobs during both its construction and subsequent operation phases.

Construction is progressing smoothly, and the China Development Bank has reiterated its commitment to collaborating with the Nigerian government to ensure the timely release of funds and effective management of the project’s next stages.

Initially, the China Exim Bank was set to finance the project but later withdrew, with the CDB stepping in as the new financial backer. The CDB emphasized its ongoing partnership with Nigerian authorities to facilitate the continued disbursement of loans and ensure proper post-loan oversight.

Last year, Nigerian President Bola Tinubu assured that the Ibadan-Abuja-Kaduna-Kano railway project would be completed successfully. The Federal Government is optimistic that the ongoing Kaduna-Kano rail segment will be finished by year-end.

A total of N44.4 billion has been allocated in the 2024 budget for the completion of key railway projects, including the Abuja-Kaduna and Lagos-Ibadan rail lines.