China Development Bank (CDB) has approved the first tranche of a $255 million loan for the Nigerian government’s Kaduna-Kano railway project.
China Development Bank (CDB) said it will provide crucial financial backing to ensure the smooth construction of the transportation initiative.
The railway is on the list of practical cooperation deliverables released during the third Belt and Road Forum for International Cooperation in 2023.
CDB said the railway project has been making steady progress, so far, adding that going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.
Construction of the Kaduna-to-Kano rail project, which is expected to cost $973 million, has been slowed by funding delays.
China Development Bank said in a statement on its website that the loan would provide financial support for the smooth progress of the 203-kilometre (126-mile) standard-gauge railway.
“Once completed, it will provide direct rail connectivity between Kano, an important northern city in Nigeria, and the country’s capital Abuja, offering local residents a safe, efficient, and convenient mode of transportation,” the bank said.
Nigeria’s parliament first approved China’s Exim Bank as financier for the rail project in 2020 but the bank later withdrew.
The Kano-Kaduna railway project is part of China’s Belt and Road Initiative and is being constructed by China Civil Engineering Construction Corporation.
It is also expected to ease movement of people and goods in a region, where road travellers face attacks from armed gangs who kidnap for ransom.
China is among Nigeria’s largest bilateral lenders, providing loans for roads, rail and power stations.
