The Nigerian government has successfully secured the sum of $225 million from China to finance its railway project.
The China Development Bank (CDB) announced the disbursement of the fund on Wednesday for the construction of a 203-kilometer Kano-Kaduna railway project, according to a report by Reuters.
The project aims to connect the northern city of Kano with Nigeria’s capital, Abuja, offering a safer and more efficient mode of transportation.
The loan will provide much-needed financial support for the $973 million railway project, which has faced delays due to funding challenges. Initially approved by Nigeria’s parliament in 2020 under financing from China’s Exim Bank, the project stalled after the Exim Bank withdrew its support.
“Once completed, it will provide direct rail connectivity between Kano, an important northern city in Nigeria, and the country’s capital Abuja, offering residents a safe, efficient, and convenient mode of transportation,” the bank said.
The railway has also been listed as a key collaboration project under China’s Belt and Road Initiative, with construction being handled by the China Civil Engineering Construction Corporation (CCECC).
According to CDB, project is expected to boost economic activities in northern Nigeria, promote industrial development, and create jobs along its route.
“This railway will also promote the development of related industries along the route. The construction and operation of the project will create numerous job opportunities in Nigeria,” the bank said. d the railway will provide a secure mode of transportation for people and goods.
What to know
The project was first launched in 2021 by former President Muhammadu Buhari as part of Nigeria’s broader Lagos-Kano railway modernization program. However, progress has been slowed by funding delays.
The railway is expected to ease the movement of goods and people, reducing costs and enhancing trade in the region.
The Nigerian government has committed to working closely with the CDB to ensure smooth project execution and continued loan disbursements.
“Currently, the project is progressing smoothly. The next phase will focus on continued disbursement of loans and effective management”, the bank added.
