Kano-Kaduna railway project gets $254.76m lifeline from Chinese bank

The China Development Bank (CBD) has approved a $254.76 million (€245m) loan to support the ongoing Kano-Kaduna railway project.

The bank, which announced this on its website on Tuesday, said the financial backing is expected to ensure the seamless continuation of the construction work.

The Kano-Kaduna railway, with a total length of 203 kilometres, is a standard-gauge railway. On completion, it will provide direct rail connectivity between Kano and Abuja.

The project will provide residents with a safer and more efficient mode of transport, improving regional connectivity.

In addition to easing transportation, the project is expected to stimulate economic growth by fostering the development of industries along its corridor.

It is also set to create numerous employment opportunities during its construction and subsequent operations.

The Kano-Kaduna railway has been listed as a practical cooperation project under the Third Belt and Road Forum for International Cooperation.

It is being executed by the China Civil Engineering Construction Corporation and financed by the CDB.

The bank said construction is progressing well, noting that it is committed to working closely with the Nigerian government to ensure the disbursement of funds and effective management of the next phases of the project.

The China Exim Bank, who was to be the financier of the project, backed off, while Nigeria announced the CDB as the new financier.

“Going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management,” the CDB noted.

Last year, President Bola Tinubu assured that the Ibadan-Abuja-Kaduna-Kano railway project would be completed to satisfaction.

The Federal Government hopes that the ongoing construction of the Kaduna to Kano rail line will be completed before the end of this year.