Sunday, February 16, 2025

China Approves $254.76m Loan for Kano-Kaduna Railway

Nigeria’s long-awaited Kano-Kaduna railway project has received a major boost. The China Development Bank (CDB) has approved a $254.76 million loan to fast-track construction.

Once completed, the 203-kilometer railway will connect Kano, the commercial hub of northern Nigeria, to Abuja, the nation’s capital. Residents can expect safer, faster, and more convenient travel, transforming regional connectivity.

The railway promises more than improved mobility. It is expected to create thousands of jobs and spur economic growth in industries along the route. “This project will drive local development and benefit millions,” said Saidu Alkali, Nigeria’s Minister of Transportation.

Funded under China’s Belt and Road Initiative, the project is part of broader efforts to improve Nigeria’s infrastructure. The China Civil Engineering Construction Corporation (CCECC) is handling construction, with the CDB emphasizing its commitment to timely fund disbursement.

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A spokesperson for the bank stated, “We remain dedicated to working closely with Nigeria to ensure the project’s success.”

Challenges and Progress

Securing funding for railway projects has been challenging. Financial institutions view such investments as high-risk, delaying progress. However, China stepped in to support the Ibadan-Abuja and Kaduna-Kano railways, requiring Nigeria to provide 15% counterpart funding.

President Bola Tinubu recently reaffirmed his commitment to completing these projects, calling them vital for Nigeria and West Africa. The Federal Government aims to finish the Kaduna-Kano line by year-end and has plans for a speed rail from Abuja to Lagos.

The government allocated ₦44.4 billion for ongoing rail projects, including the Lagos-Ibadan and Abuja-Kaduna lines. Two organizations have expressed interest in the speed rail, awaiting regulatory approvals.

As construction advances, residents eagerly anticipate the economic and social benefits the rail system will deliver. For Kano and Kaduna, this could be the dawn of a new era.

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