The China Development Bank (CDB) confirms the approval of a $254.76 million loan to advance the Kano-Kaduna railway project in Nigeria. This funding is critical for the continued development of the 203-kilometer standard-gauge line, designed to link Kano, a major commercial hub in northern Nigeria, to Abuja, the federal capital.
The Kano-Kaduna railway is set to provide residents with a safer, faster, and more efficient mode of transportation, significantly improving regional connectivity. The project is also expected to drive economic activity along its route, fostering industrial growth and creating numerous job opportunities during its construction and operation phases.
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 initiative highlights Nigeria’s commitment to leveraging strategic partnerships to develop sustainable infrastructure, boost economic growth, and improve mobility for its citizens.
 confirms the approval of a $254.76 million loan to advance the Kano-Kaduna railway project in Nigeria. This funding is critical for the continued development of the 203-kilometer standard-gauge line, designed to link Kano, a major commercial hub in northern Nigeria, to Abuja, the federal capital.){kind=link}