From Adanna Nnamani, Abuja
The China Development Bank (CDB) has approved a $254.76 million (€245 million) loan to support the Kano-Kaduna railway project. The funding, announced on Tuesday, is a major boost for the ongoing construction of the 203-kilometer standard-gauge railway designed to connect Kano, a major northern commercial hub, to Abuja, Nigeria’s capital.
According to the CDB, the loan will ensure the project’s timely completion by addressing financial constraints that might otherwise cause delays. The bank emphasized its commitment to working closely with Nigerian partners to disburse funds smoothly and manage subsequent project phases effectively.
“Going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management,” the bank stated.
Once completed, the Kano-Kaduna railway will offer residents a safe, efficient and convenient transportation option, significantly improving regional connectivity. The project is expected to stimulate economic activity along its route, fostering industrial growth and creating jobs during both construction and operation.
The railway is a flagship project under China’s Belt and Road Initiative and is being executed by the China Civil Engineering Construction Corporation (CCECC).
The Nigerian Minister of Transportation, Saidu Alkali, highlighted that the project is part of a broader strategy to modernize the country’s rail infrastructure under an EPC+F model, which combines engineering, procurement, construction, and financing.
Alkali noted China’s pivotal role in funding other critical railway projects in Nigeria, including the Ibadan-Abuja and Kaduna-Kano sections of the Lagos-Kano railway. However, he acknowledged the challenges in securing funding for rail infrastructure, as many financial institutions view such projects as high-risk investments. Consequently, China has become a crucial partner in advancing these initiatives.
President Bola Tinubu has reiterated his commitment to completing the Ibadan-Abuja-Kaduna-Kano railway to benefit not just Nigeria but the West African region. He assured that the government is working to meet its obligations under the EPC+F model, which requires 15% counterpart funding from the Nigerian government while loans cover the remaining 85%.
In addition to the Kano-Kaduna railway, Nigeria’s Federal Government has ambitious plans to develop a high-speed rail line connecting Abuja and Lagos. Permanent Secretary of the Ministry of Transportation, Mr. Adeleye Adeoye, revealed that two organizations have expressed interest in constructing the speed rail through a Public-Private Partnership (PPP). The project is awaiting approval from the Infrastructure Concession Regulatory Commission (ICRC).
The Federal Government has allocated N44.4 billion in its budget for 2025 to complete several railway projects, including the Abuja-Kaduna railway and the Lagos-Ibadan railway. Officials have assured that the Kaduna-Kano rail line will be completed before the end of the year.
Economic analysts note that with projects like these, Nigeria is on the path to transforming its rail infrastructure, bolstering economic growth, improving mobility and strengthening regional trade networks.