China Fuels Nigeria's Rail Ambitions with $254 Million Loan

China Development Bank has granted Nigeria a loan of $254.76 million for a railway project linking Kano and Kaduna. This funding aims to advance the $973 million project, facilitating safe and efficient travel. The project is part of China's Belt and Road Initiative, enhancing connectivity amidst regional security concerns.

The China Development Bank has approved a loan of $254.76 million to Nigeria, aimed at financing a railway project that will connect the northern states of Kano and Kaduna, announced ahead of China's Foreign Minister Wang Yi's visit to Nigeria this week. Scheduled to meet President Bola Tinubu and senior officials, Yi's visit coincides with efforts to bolster Nigeria's infrastructure development under China's Belt and Road Initiative.

The Kaduna-Kano railway project, expected to cost $973 million in total, has faced delays due to funding shortages. The newly approved loan is intended to ensure the construction of the 203-kilometre standard-gauge railway progresses smoothly. Initially proposed to be funded by China's Exim Bank in 2020, the project hit a setback when Exim Bank withdrew its financial support.

With the railway promising to enhance transportation safety and efficiency between Kano and Abuja, local residents eagerly anticipate its completion. Additionally, the project seeks to improve the region's security dynamics by providing a safer option compared to road travel, which is often threatened by armed bandits. China remains one of Nigeria's largest bilateral partners, significantly investing in infrastructure such as roads, rail, and power stations.

(With inputs from agencies.)