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

byChibuzor Isichei
January 8, 2025
in Business, Tech
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The China Development Bank (CDB) has officially approved a €245 million ($254.76 million) loan to support the ongoing Kano-Kaduna railway project in Nigeria. The announcement, made public on Tuesday, highlights the bank’s commitment to ensuring the continued progress of the construction.

The CDB stated, “On Tuesday, the China Development Bank confirmed it has recently extended a €245 million ($254.76 million) loan to the Kano-Kaduna railway project in Nigeria, offering crucial financial support to facilitate the smooth progression of the initiative.”

The project involves the development of a standard-gauge railway line spanning 203 kilometers, linking Kano—an important commercial hub in northern Nigeria—with Abuja, the nation’s capital. Once operational, the railway will provide a safer, more efficient mode of transportation, enhancing regional connectivity.

Beyond improving transport efficiency, the project is expected to foster economic growth by stimulating industrial development along its route. It will also generate substantial job opportunities both during construction and in the railway’s operational phase.

The Kano-Kaduna railway is a key cooperation project under the Third Belt and Road Forum for International Cooperation. Execution of the project is being carried out by the China Civil Engineering Construction Corporation (CCECC), with financing provided by the CDB.

According to the bank, construction is progressing as planned. The CDB has reaffirmed its commitment to collaborating with the Nigerian government to ensure the timely disbursement of funds and the effective management of the next phases of the project.

Originally, the China Exim Bank was slated to finance the project, but it later withdrew, paving the way for the CDB to step in as the primary financier. The CDB has pledged to work closely with Nigerian partners to manage future loan disbursements and ensure the project’s successful completion.

In related developments, President Bola Tinubu assured last year that the Ibadan-Abuja-Kaduna-Kano railway project would be completed to satisfaction, with plans for the Kaduna-Kano section to be finalized by the end of 2025. The Nigerian government has allocated N44.4 billion this year to ensure the completion of several railway projects, including the Abuja-Kaduna and Lagos-Ibadan lines.

Additionally, the Chinese Foreign Minister, Wang Yi, is set to visit Abuja on Wednesday for an official trip. During his visit, Yi, a member of the Political Bureau of the Communist Party of China, will engage in talks aimed at strengthening bilateral relations between Nigeria and China.


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