The China Development Bank (CDB) has approved a $254.76 million (€245 million) loan to support the construction of the Kano-Kaduna railway project in Nigeria. Announced on Tuesday, the funding will help complete the 203-kilometer standard-gauge railway, which aims to connect Kano, a major northern commercial hub, with Abuja, Nigeria’s capital.
The CDB highlighted that the loan would address financial constraints that could cause delays, ensuring the timely completion of the project. The bank also emphasized its commitment to working closely with Nigerian partners to disburse funds and manage subsequent project phases effectively.
Once completed, the railway will improve regional connectivity, providing a safe, efficient, and convenient transportation option for residents. The project is expected to stimulate economic activity, foster industrial growth, and create jobs during both construction and operation.
This railway is part of China’s Belt and Road Initiative and is being executed by the China Civil Engineering Construction Corporation (CCECC). Nigerian Minister of Transportation, Saidu Alkali, noted that this project is part of a broader strategy to modernize the country’s rail infrastructure through an EPC+F model, combining engineering, procurement, construction, and financing.
Alkali also acknowledged China’s pivotal role in funding other critical rail projects in Nigeria, despite the challenges in securing funding due to the high-risk nature of such projects. He stressed that China remains a key partner in advancing these initiatives.
President Bola Tinubu reaffirmed the government’s commitment to completing the Ibadan-Abuja-Kaduna-Kano railway, benefiting Nigeria and the West African region. He assured that Nigeria would fulfill its counterpart funding obligations under the EPC+F model.
Additionally, the Nigerian government has ambitious plans for a high-speed rail line connecting Abuja and Lagos, with two organizations expressing interest in the project. This initiative is awaiting approval from the Infrastructure Concession Regulatory Commission (ICRC).
The Federal Government has allocated N44.4 billion in the 2025 budget to complete several railway projects, including the Abuja-Kaduna railway and the Lagos-Ibadan railway. Officials have also confirmed that the Kaduna-Kano rail line will be completed by the end of the year.