The China Development Bank (CDB) has approved a €245 million ($254.76 million) loan to support the construction of Nigeria’s Kano-Kaduna railway project.
In a statement published on its official website on Tuesday, the bank confirmed the loan approval, describing it as vital financial support to ensure the smooth progress of the ongoing construction work.
The bank stated, “China Development Bank released on Tuesday that the bank has recently granted a loan of 245m euros ($254.76m) to the Kano-Kaduna railway project in Nigeria, providing financial support for the smooth progress of the project.”
The Kano-Kaduna railway, a 203-kilometre standard-gauge line, is expected to link Kano, a major commercial hub in northern Nigeria, to Abuja, the nation’s capital.
Once completed, the rail line aims to provide a safer, faster, and more efficient mode of transportation, enhancing regional connectivity and economic activities along the corridor.
In addition to improving transportation, the project is projected to stimulate industrial development and create significant employment opportunities during construction and subsequent operations.
The project, classified as a practical cooperation initiative under the Third Belt and Road Forum for International Cooperation, is being executed by the China Civil Engineering Construction Corporation and financed by the CDB.
Following a shift in financiers, the China Exim Bank, originally earmarked to fund the project, withdrew, leading to CDB’s intervention as the new financier.
The bank said it is committed to working closely with Nigeria to oversee the disbursement of funds and manage subsequent phases effectively.
It added, “Going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.”
The Kano-Kaduna railway is regarded as a critical component of Nigeria’s broader rail modernization plan aimed at improving infrastructure, boosting trade, and reducing transportation costs.
President Bola Tinubu had previously assured Nigerians that the Ibadan-Abuja-Kaduna-Kano railway network would be completed as planned, reaffirming the Federal Government’s commitment to infrastructure development.
Government records show that approximately N44.4 billion has been allocated in the 2025 budget for the completion of the Abuja-Kaduna railway, Lagos-Ibadan rail line, and other railway projects nationwide.
The railway initiative aligns with Nigeria’s long-term strategy to diversify its economy, improve logistics, and attract foreign investment.
As part of ongoing bilateral engagements, China’s Foreign Minister, Wang Yi, is expected to arrive in Abuja on Wednesday for an official visit. The visit is set to focus on strengthening economic and diplomatic ties between both nations.
Analysts have welcomed the development, noting that the CDB’s financial backing will not only accelerate construction but also enhance investor confidence in Nigeria’s infrastructure sector.
However, concerns remain over the sustainability of external borrowings and the potential impact of debt servicing obligations on Nigeria’s fiscal health.
