Nigeria Secures $254.76M Railway Loan From China

Ahead of China’s top diplomat’s visit to the West African nation this week, China Development Bank announced that it has granted a $254.76 million loan to Nigeria for a railway project connecting the two northern states of Kano and Kaduna.

According to Nigeria’s foreign affairs ministry, China’s Foreign Minister Wang Yi will arrive in Nigeria on Wednesday as part of his yearly New Year tour of Africa and meet with President Bola Tinubu and senior government officials on Thursday.

Funding delays have slowed the construction of the $973 million Kaduna-to-Kano rail project.

According to a statement posted on its website, the loan will help ensure that the 203-kilometer (126-mile) standard-gauge railway is built smoothly.

“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.

The Nigerian parliament initially authorised China’s Exim Bank to finance the rail project in 2020, but the bank subsequently pulled out.

A component of China’s Belt and Road Initiative, the Kano-Kaduna railway project is being built by China Civil Engineering Construction Corporation.

Additionally, in an area where armed gangs attack road passengers and abduct them for ransom, it is anticipated to facilitate the flow of people and products.

China is one of the biggest bilateral lenders to Nigeria, offering loans for power plants, railroads, and highways.

CNBC Africa