The China Development Bank (CDB) has approved a $254.76 million loan to support Nigeria’s Kano-Kaduna railway project, ensuring the continuity of this critical infrastructure initiative.
Announced on Tuesday, the loan will provide financial stability for the 203-kilometer standard-gauge railway, which links Kano, a northern commercial hub, to Abuja, the nation’s capital. This project is expected to enhance regional connectivity, providing a safe and efficient transport alternative for residents.
Economic and Social Benefits
Beyond improving mobility, the Kano-Kaduna railway is projected to stimulate economic growth along its route, promote industrial development, and create jobs during both construction and operation. The railway is a key component of Nigeria’s involvement in the Third Belt and Road Forum for International Cooperation and is being executed by the China Civil Engineering Construction Corporation (CCECC).
The CDB emphasized its commitment to ensuring timely disbursement of funds and effective management of subsequent phases in collaboration with Nigerian authorities. “Going forward, we will closely coordinate with Nigerian partners to ensure smooth disbursement of loans and effective post-loan management,” the bank noted.
Broader Rail Ambitions
The Kano-Kaduna railway is part of a larger initiative under Nigeria’s transportation master plan. President Bola Tinubu has reaffirmed the government’s commitment to completing the Ibadan-Abuja-Kaduna-Kano railway project to benefit Nigeria and the West African region.
Last year, Nigeria’s Minister of Transportation, Saidu Alkali, disclosed that China has committed to funding the Ibadan-Abuja and Kaduna-Kano railway sections under the Belt and Road Initiative. These projects are being executed under an EPC+F (Engineering, Procurement, Construction, and Financing) model, requiring 15% funding from Nigeria and 85% from loans.
However, securing loans for railway projects has been challenging due to perceived financial risks, prompting Nigeria to turn to China for support.
Speed Rail Development
The Federal Government has also revealed plans for a speed rail connecting Abuja to Lagos, with two organizations expressing interest in a Public Private Partnership (PPP) agreement. Construction is expected to commence after the Infrastructure Concession Regulatory Commission (ICRC) completes its due diligence.
Budgetary Allocations
For 2024, the Federal Government allocated ₦44.4 billion for completing the Abuja-Kaduna Railway, Lagos-Ibadan railway, and other national railway projects.
The ongoing construction of the Kaduna-Kano rail line is expected to be completed by the end of 2025, signaling progress in Nigeria’s transportation infrastructure ambitions.
