The China Development Bank has approved a loan of €245 million ($254.76 million) to support the ongoing construction of the Kano-Kaduna railway project in Nigeria.
A statement on the bank’s website, released on Tuesday, confirmed the approval, which will help ensure the smooth continuation of the project.
The release stated, “China Development Bank released on Tuesday that the bank has recently granted a loan of 245m euros ($254.76m) to the Kano-Kaduna railway project in Nigeria, providing financial support for the smooth progress of the project.”
The railway project, which spans 203 kilometers, will connect Kano, a major commercial hub in northern Nigeria, to Abuja, the nation’s capital. Once operational, it is expected to offer residents a safer, more efficient mode of transport, enhancing regional connectivity.
Beyond improving transportation, the project is anticipated to stimulate economic growth by promoting industrial development along its route.
Additionally, it is expected to generate numerous job opportunities both during construction and in its ongoing operation.
The Kano-Kaduna railway is one of the key projects under the Third Belt and Road Forum for International Cooperation. It is being executed by the China Civil Engineering Construction Corporation and financed by the China Development Bank.
Construction is reportedly progressing well, and the CDB has emphasized its commitment to working closely with the Nigerian government to ensure effective fund disbursement and management for future phases of the project.
Initially, the China Exim Bank was set to finance the project, but Nigeria later announced that the CDB would take over the financing role.
The CDB has assured continued coordination with Nigerian partners to ensure smooth loan disbursement and the effective management of the post-loan phase.
In 2024, President Bola Tinubu expressed confidence that the Ibadan-Abuja-Kaduna-Kano railway project would be completed to satisfaction.
The Nigerian government is optimistic that the ongoing work on the Kaduna to Kano rail line will be finished by the end of this year.
For this year, a budget of N44.4 billion has been allocated for the completion of several railway projects, including the Abuja-Kaduna Railway and Lagos-Ibadan railway.
Meanwhile, China’s Foreign Minister, Wang Yi, is set to visit Abuja on Wednesday for an official engagement. During his visit, Yi, a member of the Political Bureau of the Central Committee of the Communist Party of China, will participate in discussions aimed at strengthening the diplomatic relationship between Nigeria and China.
