Chinese bank approves €245m loan for Kano-Kaduna railway project
By Uzair Adam
The China Development Bank (CDB) has approved a €245 million ($254.76 million) loan to fund the Kano-Kaduna railway project in Nigeria.
In a statement released on its official website on Tuesday, the bank confirmed that the financial package is intended to ensure the smooth continuation of the railway’s construction.
The statement read, “China Development Bank has recently granted a loan of €245 million ($254.76 million) to the Kano-Kaduna railway project in Nigeria, providing financial support for the smooth progress of the project.”
The 203-kilometre standard-gauge railway line will connect Kano, a major commercial hub in northern Nigeria, to the federal capital, Abuja.
Once completed, the railway will enhance regional connectivity, offering residents a safer and more efficient mode of transportation.
In addition to improving mobility, the project is expected to drive economic growth by promoting industrial development along its corridor.
It will also generate significant employment opportunities during its construction and subsequent operations.
The Kano-Kaduna railway is recognized as a key cooperation project under the Third Belt and Road Forum for International Cooperation. Construction is being executed by the China Civil Engineering Construction Corporation, with financing from the CDB.
Previously, the project was slated for funding by the China Exim Bank, which later withdrew its financial commitment. The CDB subsequently stepped in as the new financier.
The bank reaffirmed its commitment to collaborating closely with the Nigerian government to ensure timely disbursement of funds and effective management of subsequent project phases.
“Going forward, [the CDB] will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management,” the statement added.
President Bola Tinubu had earlier assured Nigerians that the broader Ibadan-Abuja-Kaduna-Kano railway project would be completed satisfactorily.
The Federal Government has allocated N44.4 billion this year to complete the Abuja-Kaduna Railway project, the Lagos-Ibadan railway, and other rail infrastructure initiatives.
Meanwhile, the Foreign Minister of China, Wang Yi, is expected in Abuja on Wednesday for an official visit.
During his stay, Yi, a member of the Political Bureau of the Communist Party of China, will engage in discussions to further strengthen bilateral relations between Nigeria and China.