The China Development Bank (CDB) has approved a loan of $254.76 million (€245 million) to support Nigeria’s Kano-Kaduna railway project for uninterrupted progress in its construction.
In a statement on its website on Tuesday, the bank noted, “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 standard-gauge railway, spanning 203 kilometers, will connect Kano, a major commercial hub in northern Nigeria, to the nation’s capital, Abuja. Upon completion, it is expected to offer residents a safer and more efficient transportation option while improving regional connectivity.
Beyond transportation, the project is anticipated to drive economic growth by promoting industrial development along its route. Additionally, it is set to generate numerous employment opportunities during both the construction phase and subsequent operations.
The Kano-Kaduna railway is among the key projects listed 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 CDB.
The CDB highlighted that construction work is progressing well and affirmed its dedication to collaborating with the Nigerian government to facilitate loan disbursements and manage the upcoming phases effectively.
It added: “Going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.”
The CDB stepped in as financier after the China Exim Bank withdrew its funding for the project.
President Bola Tinubu previously assured that the Ibadan-Abuja-Kaduna-Kano railway project would be completed satisfactorily.
The Federal Government has allocated N44.4 billion in this year’s budget for the completion of the Abuja-Kaduna Railway project as well as other railway initiatives, including the Lagos-Ibadan railway.