The China Development Bank has approved a $254.76 million loan to Nigeria for the construction of the Kaduna-Kano railway, part of the country’s larger railway modernization efforts under the Lagos-Kano initiative.
This development is a significant milestone in China’s involvement in Nigeria’s infrastructure development and its Belt and Road Initiative (BRI).
The Kaduna-Kano railway project was launched in July 2021 by then-President Muhammadu Buhari in Kano State.
It is envisioned as a critical link in Nigeria’s transportation network, connecting Kano, a major northern city, with Abuja, the nation’s capital. Once completed, the railway is expected to enhance regional economic activity by facilitating the movement of goods and people, lowering transportation costs, and improving market access.
“This railway will provide safe, efficient, and convenient transport for local residents while driving economic growth in the region,” stated the China Development Bank.
The $973 million project initially faced delays due to funding challenges. In 2020, Nigeria’s parliament approved financing from China’s Exim Bank, but the bank later withdrew its support.
The project’s financing has since shifted to the China Development Bank, with construction being undertaken by the China Civil Engineering Construction Corporation (CCECC).
The announcement coincides with an upcoming visit by China’s Foreign Minister Wang Yi to Nigeria. During his New Year tour of Africa, Minister Wang is expected to meet with President Bola Tinubu and other senior government officials to strengthen diplomatic and economic ties.
China’s involvement in the Kaduna-Kano railway is part of its broader BRI strategy, aimed at enhancing global infrastructure connectivity and economic cooperation.
While the initiative has spurred development in many regions, it has also drawn criticism over concerns of excessive debt burdens on participating countries.
The Kaduna-Kano railway project represents a vital step in Nigeria’s quest for improved infrastructure and economic integration.
Despite past delays, the new financing arrangement offers renewed hope for the project’s timely completion, promising transformative impacts on regional transportation and economic growth.
As Nigeria continues its railway modernization journey, the successful implementation of projects like this will be crucial in fostering sustainable development and reducing logistical bottlenecks in the country.
