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Chinese Bank Approves $254.76 Million Loan for Kano-Kaduna Railway Project

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The China Development Bank (CDB) has approved a loan of $254.76 million (€245 million) to support Nigeria’s Kano-Kaduna railway project.

This 203-kilometer standard-gauge railway will connect Kano, a major commercial hub in northern Nigeria, to Abuja, the nation’s capital. The project aims to provide residents with a safer and more efficient mode of transportation, enhancing regional connectivity. Additionally, it is expected to stimulate economic growth by fostering industrial development along its corridor and creating numerous employment opportunities during both construction and operation phases.

The project is being executed by the China Civil Engineering Construction Corporation (CCECC) and financed by the CDB. Construction is reportedly progressing well, with the CDB emphasizing its commitment to working closely with Nigerian authorities to ensure the smooth disbursement of funds and effective management of subsequent project phases.

This development follows previous challenges in securing financing, notably when the China Exim Bank withdrew from funding the project, leading Nigeria to seek alternative financing from the CDB.

The Kano-Kaduna railway is part of Nigeria’s broader efforts to modernize its railway infrastructure. In 2023, the Chinese government committed to refinancing and completing the Abuja-Kano and Port Harcourt-Maiduguri railway projects, reaffirming its support during a bilateral meeting between Chinese President Xi Jinping and Nigerian Vice President Kashim Shettima in Beijing.

The Nigerian government has allocated approximately N44.4 billion in the 2025 budget to complete the Abuja-Kaduna Railway, Lagos-Ibadan Railway, and other ongoing projects, underscoring its commitment to enhancing the country’s transportation infrastructure.

The Foreign Minister of the People’s Republic of China, Wang Yi, is scheduled to arrive in Abuja on Wednesday for an official visit aimed at strengthening ties between Nigeria and China.

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