The China Development Bank (CDB) has announced the approval of a €245 million ($254.76 million) loan to support the ongoing Kano-Kaduna railway project in Nigeria.
In a statement released on its website Tuesday, the bank confirmed the financial backing would facilitate the uninterrupted continuation of the railway’s construction. The CDB stated, “The bank has recently granted a €245 million ($254.76 million) loan to the Kano-Kaduna railway project in Nigeria, providing financial support for the smooth progress of the project.”
The 203-kilometer standard-gauge railway will connect Kano, a major commercial hub in northern Nigeria, to Abuja, the nation’s capital. Once operational, it is expected to offer a safer and more efficient mode of transportation, enhancing regional connectivity.
Beyond improving transportation, the project is anticipated to stimulate economic growth by encouraging industrial development along the railway corridor and generating numerous job opportunities during both construction and operation phases.
The Kano-Kaduna railway is one of the key projects under the Third Belt and Road Forum for International Cooperation. The project is being executed by the China Civil Engineering Construction Corporation (CCECC) and financed by the China Development Bank.
The CDB confirmed that construction is progressing well and reiterated its commitment to collaborating with the Nigerian government for the effective management and timely disbursement of funds throughout the project’s next phases.
Initially, the China Exim Bank was set to finance the project but later withdrew, with the CDB stepping in as the new financier. The bank stated, “Going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.”
In addition to this development, President Bola Tinubu has expressed confidence that the Ibadan-Abuja-Kaduna-Kano railway project will be completed to full satisfaction. The Federal Government aims to complete the Kaduna-Kano rail line by the end of this year, with N44.4 billion allocated in the 2025 budget for the completion of the Abuja-Kaduna, Lagos-Ibadan, and other rail projects across the country.
Additionally, China’s Foreign Minister Wang Yi is scheduled to visit Abuja on Wednesday for an official trip, underscoring the growing cooperation between the two nations.
