Chinese Bank Boosts Kano-Kaduna Railway with $254M Lifeline

By Achimi Muktar

In a major boost to Nigeria’s infrastructure development, the China Development Bank (CDB) has approved a $254.76 million (€245 million) loan to support the ambitious Kano-Kaduna railway project. The funding promises to ensure the seamless continuation of construction on the transformative rail line.

Revealing the development on its website, the CDB stated, “The 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 project—a 203-kilometer standard-gauge railway—aims to connect Kano, the economic hub of northern Nigeria, to Abuja, the nation’s capital. Upon completion, the rail line is expected to revolutionize transportation in the region, offering safer, faster, and more efficient travel options.

Economic and Social Benefits

Beyond improving regional connectivity, the railway is set to spark economic growth by stimulating industrial development along its corridor. Additionally, it will create substantial employment opportunities during construction and subsequent operations, providing much-needed relief to the local workforce.

The Kano-Kaduna railway is part of a broader agenda under the Third Belt and Road Forum for International Cooperation, a flagship initiative between China and its global partners. The project is being executed by the China Civil Engineering Construction Corporation (CCECC) and financed by the CDB.

Challenges and Recovery

The CDB stepped in to fund the project after the China Exim Bank backed out, leaving a financing gap. President Bola Tinubu has reiterated his administration’s commitment to completing the railway, which is integral to the broader Ibadan-Abuja-Kaduna-Kano railway project.

Last year, Tinubu assured Nigerians of his determination to see the railway to its successful conclusion. This year alone, the Federal Government has allocated N44.4 billion toward completing railway projects, including the Abuja-Kaduna and Lagos-Ibadan lines.

Strengthening Sino-Nigerian Ties

In a related development, Wang Yi, Foreign Minister of the People’s Republic of China and a member of the Political Bureau of the Communist Party of China, is scheduled to visit Abuja. His visit aims to solidify the partnership between the two nations, focusing on deepening economic and diplomatic ties.

As construction progresses, the CDB has reaffirmed its commitment to working closely with Nigeria to ensure timely loan disbursement and effective management of subsequent project phases.

This funding not only underscores China’s commitment to Nigeria’s infrastructure growth but also highlights the potential for transformative regional development. Could this be the breakthrough Nigeria’s railway system has been waiting for? Share your thoughts!