A $245 million (254.76 million) loan has been approved by the China Development Bank (CDB) to help Nigeria’s Kano-Kaduna railway project.
The funding is anticipated to guarantee the smooth continuation of the construction project, according to information posted on its website on Tuesday.
“China Development Bank announced on Tuesday that the bank has recently granted a loan of 245 million euros ($254.76 million) to the Kano-Kaduna railway project in Nigeria, providing financial support for the smooth progress of the project,” the website stated.
The 203-kilometer, standard-gauge railway would connect Abuja, the capital of Nigeria, with Kano, a major commercial hub in the country’s north.
It will improve regional connections by giving locals a safer and more effective form of transportation once it is operating.
The project is anticipated to promote economic growth by encouraging the establishment of industries within its corridor, in addition to making transit easier.
Additionally, it is expected to provide a large number of job opportunities both during construction and during its operation.
A practical cooperation project under the Third Belt and Road Forum for International Cooperation is the Kano-Kaduna railway.
The CDB is providing funding, and the China Civil Engineering Construction Corporation is carrying out the project.
The construction is going nicely, the bank said. The CDB reaffirmed that it would continue to collaborate closely with the Nigerian government to guarantee the distribution of funds and efficient administration of the project’s subsequent stages.
After the China Exim Bank withdrew its funding commitment, Nigeria announced the CDB as the project’s new lender.
“It will work closely with Nigerian partners going forward to ensure the seamless disbursement of subsequent loans and effective post-loan management,” the CDB stated.
In the previous year, President Bola Tinubu promised that the railway project between Ibadan, Abuja, Kaduna, and Kano would be finished to his satisfaction.
Before the end of this year, the Federal Government wants to have the Kaduna-Kano rail line up and running.
This year, approximately N44.4 billion has been allocated for the completion of several railway projects throughout the nation, including the Lagos-Ibadan and Abuja-Kaduna railway projects.
Wang Yi, the People’s Republic of China’s foreign minister, is expected to make an official visit to Abuja on Wednesday.
Yi, a member of the Central Committee of the Communist Party of China’s Political Bureau, will hold talks to deepen Nigeria-China relations while in the country.
