The China Development Bank (CDB) has officially approved a loan of $254.76 million (€245 million) to support the ongoing Kano-Kaduna railway project in Nigeria.
In a statement posted on its website Tuesday, the CDB confirmed that this financial backing will ensure the uninterrupted continuation of the construction efforts.
The announcement read, “The China Development Bank has recently granted a loan of 245 million euros ($254.76 million) to the Kano-Kaduna railway project in Nigeria, guaranteeing the seamless advancement of the development.”
The railway, a 203-kilometer standard-gauge line, will link Kano, a key commercial center in northern Nigeria, with Abuja, the nation’s capital.
Upon completion, the railway is expected to offer a safer and more efficient transportation option for local residents and improve regional connectivity.
Beyond enhancing transportation, the project is also expected to stimulate economic growth by encouraging industrial development along the railway corridor. It will generate substantial employment opportunities during both the construction phase and the operational period.
The Kano-Kaduna railway project is a major cooperative initiative under the Third Belt and Road Forum for International Cooperation and is being executed by the China Civil Engineering Construction Corporation (CCECC), with financial backing from the China Development Bank.
The CDB stated that construction is progressing smoothly, reaffirming its commitment to working closely with the Nigerian government to ensure effective fund disbursement and management during the upcoming phases of the project.
Originally, the China Exim Bank was set to finance the project but withdrew, leading to the CDB stepping in as the new financier. The bank further stated, “We will closely coordinate with our Nigerian counterparts to ensure the smooth disbursement of subsequent loans and the effective management of the post-loan process.”
In related developments, President Bola Tinubu affirmed last year that the Ibadan-Abuja-Kaduna-Kano railway would meet high standards upon completion, with the Federal Government aiming to finish the Kaduna-Kano section by the end of the year.
This year, an allocation of approximately N44.4 billion has been made to complete various railway projects, including the Abuja-Kaduna and Lagos-Ibadan rail lines.
