China Development Bank Approves $254.76 Million Loan For Kano-Kaduna Railway Project In Nigeria
The China Development Bank approved a loan of $254.76 million (€245 million) for the Kano-Kaduna railway project in Nigeria that will help the ongoing development of the railway without delays.
The railway project is expected to boost economic activity along its route by supporting the growth of related industries and creating job opportunities for Nigerians during both the construction and operational phases, Punch reported.
The project is a pivotal initiative under the Third Belt and Road Forum for International Cooperation. It is being carried out by the China Civil Engineering Construction Corporation (CCECC) with financing from the China Development Bank (CDB).
The railway, which will be a 203-kilometer standard-gauge line, is designed to connect Kano, a major business center in northern Nigeria, to the capital, Abuja. Once completed, it will provide a safe, efficient, and convenient transport option, improving regional connectivity.
The bank has reported that construction is going smoothly and expressed its commitment to working closely with the Nigerian government to ensure the project continues on schedule and that funds are managed properly in the future phases.
Furthermore, the bank said that it will work closely with Nigerian partners to ensure the smooth release of future loans and proper management after the loans are given.
Last year, Nigeria's Minister of Transportation Saidu Alkali mentioned that China has agreed to fund the Ibadan-Abuja and Kaduna-Kano sections of the Lagos-Kano railway as part of the Belt and Road Initiative.
The minister explained that most of the ongoing rail projects are being funded under an EPC+F model, which requires the federal government to contribute 15% of the funding, with the remaining 85% to be covered by loans.
However, Alkali mentioned that securing loans from banks has been difficult because financial institutions see railway projects as risky and are reluctant to offer funding. As a result, China was asked to help fund some of these projects.
President Bola Tinubu also promised that the Ibadan-Abuja-Kaduna-Kano railway project would be completed to meet the expectations of Nigeria and West Africa.
In 2023, Alkali asked the Kaduna-Kano rail line contractors to review the construction material to ensure that there was no vandalization.