China Development Bank grants $254.76m loan to Nigeria’s Kano-Kaduna railway, boosting transport, connectivity, and economic growth.

[dropcap]T[/dropcap]he China Development Bank (CDB) has announced the approval of a $254.76 million (€245 million) loan to finance the Kano-Kaduna railway project in Nigeria.

The loan, disclosed on Tuesday via the bank’s official website, aims to facilitate the seamless continuation of construction work on the critical transport corridor.

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The Kano-Kaduna railway is a standard-gauge line spanning 203 kilometres, designed to connect Kano, a commercial hub in northern Nigeria, to Abuja, the nation’s capital.

Upon completion, the railway is expected to enhance regional connectivity by offering residents a safer and more efficient mode of transportation.

In addition to improving transport infrastructure, the project is poised to stimulate economic growth by fostering industrial development along its corridor.

Construction activities and the subsequent operations of the railway are projected to create numerous employment opportunities for local communities.

This initiative forms part of the practical cooperation projects under the Third Belt and Road Forum for International Cooperation, underscoring China’s commitment to infrastructure development in partner countries.

The China Civil Engineering Construction Corporation is executing the project, with funding provided by the China Development Bank after the China Exim Bank withdrew as the financier.

The CDB highlighted its commitment to closely coordinating with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.

The bank reiterated its intention to work alongside the Nigerian government to expedite the project’s progress and ensure its timely completion.

Last year, President Bola Tinubu reaffirmed his administration’s dedication to completing the Ibadan-Abuja-Kaduna-Kano railway project.

The Federal Government has allocated approximately ₦44.4 billion this year for the completion of various railway initiatives, including the Abuja-Kaduna and Lagos-Ibadan railways.

In a related development, China’s Foreign Minister, Wang Yi, is scheduled to visit Abuja on Wednesday to discuss strengthening bilateral relations between Nigeria and China.

Wang Yi’s visit signals China’s ongoing support for Nigeria’s infrastructure and economic development ambitions.

This loan agreement and the progress of the Kano-Kaduna railway underline the importance of international cooperation in addressing infrastructure gaps and fostering sustainable development in Africa.

Source: Read more at punchng.com