The China Development Bank (CDB) has confirmed the approval of a $254.76 million loan to support the Kano-Kaduna railway project in Nigeria. This funding is essential for the ongoing construction of the 203-kilometer standard-gauge line, which will connect Kano, a key commercial center in northern Nigeria, to Abuja, the nation’s capital.
Residents will have a safer, quicker, and more effective method to travel thanks to the Kano-Kaduna railway, which will also greatly increase regional connectivity. Along its path, the project is anticipated to stimulate economic activity, promote industrial expansion, and generate a large number of job opportunities both during construction and operation.
As part of the Belt and Road Initiative, this railway project is managed by the China Civil Engineering Construction Corporation (CCECC) and financed by the CDB. The bank emphasizes its ongoing collaboration with Nigerian authorities to ensure prompt disbursement of funds and smooth implementation of the project.
The project follows an EPC+F (Engineering, Procurement, Construction, and Financing) model, with 15% of funding provided by the Nigerian government and the remaining 85% sourced through external loans. Challenges in securing financing from other sources prompted Nigeria to seek China’s assistance for the development of its rail network.
Expanding Nigeria’s Rail Infrastructure
The Kano-Kaduna railway is part of broader efforts to modernize Nigeria’s railway system:
- Ibadan-Abuja-Kaduna-Kano Rail Network: China commits to funding these segments under the Belt and Road Initiative, with assurances from President Bola Tinubu on their completion.
- Speed Rail from Abuja to Lagos: Plans are underway for this project, with two organizations expressing interest in executing it through a Public-Private Partnership (PPP). The government awaits approval from the Infrastructure Concession Regulatory Commission (ICRC) to commence construction.
- Budget Allocation for Rail Projects: The Federal Government earmarks N44.4 billion in the 2025 budget to complete the Abuja-Kaduna Railway, Lagos-Ibadan Railway, and other ongoing projects.
The Federal Government remains focused on completing the Kaduna-Kano railway by the end of 2025. Efforts are also in progress to expand Nigeria’s rail network, enhancing the country’s transportation infrastructure and economic prospects.
This program demonstrates Nigeria’s dedication to using strategic alliances to build sustainable infrastructure, accelerate economic expansion, and enhance citizen mobility.
