The China Development Bank has announced the approval of a $254.76 million (€245m) loan to support the completion of the Kano-Kaduna railway project in Nigeria.
The bank in a statement via its official website said the loan is aimed at providing financial support for the smooth progress of the project, which is expected to improve regional connectivity and promote economic growth in the region.
The 203-kilometre standard-gauge railway will connect Kano, a major commercial centre in northern Nigeria, to Abuja, the country’s capital.
Upon completion, the rail is expected to provide a safer and more efficient means of transportation, while also generating significant employment opportunities during and after its construction.
The project, being executed by the China Civil Engineering Construction Corporation (CCECC), is part of the Third Belt and Road Forum for International Cooperation.
The China Development Bank has pledged to collaborate closely with the Nigerian government to ensure the timely disbursement of funds and effective management of subsequent phases.
“We will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management,” the bank said in a statement.
Nigeria has been a major beneficiary of funding from Chinese financial institutions since joining the Belt and Road Initiative (BRI) in 2018.
The country has received significant funding for various infrastructural projects, including the construction of the Abuja-Kaduna railway, the Lagos-Ibadan railway, and the Abuja Light Rail.
Others include new terminal buildings of the Abuja, Kano, Port Harcourt, Enugu, and Lagos airports, the Lekki Deep Sea Port and the expansion and dualization of the Abuja-Keffi expressway and the Keffi-Akwanga-Lafia-Makurdi road project.
