China Development Bank releases $255m for Nigeria rail project

People walk past a booth of China Development Bank during the 2022 China International Fair for Trade in Services (CIFTIS) in Beijing. Source: Reuters/Tingshu Wang

Construction of the Kaduna-to-Kano rail project, which is expected to cost $973 million, has been slowed by funding delays.

China Development Bank said in a statement on its website that the loan would provide financial support for the smooth progress of the 203km standard-gauge railway.

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"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.

Nigeria's parliament first approved China's Exim Bank as financier for the rail project in 2020 but the bank later withdrew.

Belt and road

The Kano-Kaduna railway project is part of China's Belt and Road Initiative and is being constructed by China Civil Engineering Construction Corporation.

It is also expected to ease movement of people and goods in a region, where road travellers face attacks from armed gangs who kidnap for ransom.

China is among Nigeria's largest bilateral lenders, providing loans for roads, rail and power stations.