The China Development Bank (CDB) has announced the approval of a $254.76 million (€245 million) loan for the Kano-Kaduna railway project in Nigeria. The announcement, made on Tuesday, underscores China’s commitment to supporting critical infrastructure development under its Belt and Road Initiative.
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The Kano-Kaduna railway is a 203-kilometer standard-gauge line designed to link Kano, a major commercial hub in northern Nigeria, with Abuja, the nation’s capital. Once completed, the railway is expected to provide a safe, efficient, and convenient transportation alternative for residents, boosting regional connectivity and mobility.
Beyond transportation, the project is expected to stimulate economic activity along its route, foster industrial growth, and create thousands of jobs during both construction and operational phases.
The railway project is being executed by the China Civil Engineering Construction Corporation (CCECC) and financed by the China Development Bank. According to CDB, construction progress has been smooth so far, with the bank emphasizing its dedication to timely loan disbursement and effective management of subsequent project phases.
In a statement, CDB reiterated its commitment:
“Going forward, we will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.”
The Kano-Kaduna railway is part of the broader Lagos-Kano railway modernization project, a key initiative under Nigeria’s rail development agenda. Last year, Nigeria’s Minister of Transportation, Saidu Alkali, highlighted China’s role in funding other major rail projects, including the Ibadan-Abuja and Lagos-Kano sections. These projects operate under an EPC+F model, which requires 15% funding from the Nigerian government, with 85% financed through loans.
President Bola Tinubu has also assured Nigerians that the railway will be completed to meet national and regional needs, with the government targeting the completion of the Kaduna-Kano rail line by the end of the year.
The Federal Government has ambitious plans to expand the rail network, including the construction of a speed rail linking Abuja to Lagos. Two organizations have reportedly expressed interest in the project under a Public-Private Partnership (PPP) arrangement. The Infrastructure Concession Regulatory Commission (ICRC) is currently reviewing the proposal, with construction expected to commence once due processes are finalized.
In the 2024 budget, the Federal Government allocated N44.4 billion for completing various rail projects, including the Abuja-Kaduna and Lagos-Ibadan railways.
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