The China Development Bank has announced a $254.76 million loan to Nigeria for the construction of a railway project connecting the northern states of Kano and Kaduna.
This financial support comes ahead of a visit to Nigeria by China’s top diplomat, Foreign Minister Wang Yi, who is expected to meet with President Bola Tinubu and other senior government officials during his annual New Year tour of Africa, Reuters reported.
The Kaduna-Kano railway project was initially launched by former President Muhammadu Buhari in July 2021 in Kano State, as part of the larger Lagos-Kano railway modernization initiative.
The railway line is expected to provide a much-needed boost to the region’s economy by facilitating the movement of goods and people, reducing the cost of transportation and improving access to markets.
“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.
However, the $973 million project has faced delays due to funding challenges. Nigeria’s parliament initially approved China’s Exim Bank as the financier for the Kano-Kaduna railway project in 2020, but the bank later withdrew its support.
The project is now being financed by the China Development Bank and is being constructed by the China Civil Engineering Construction Corporation (CCECC).
China’s involvement in Nigeria’s railway modernization program is part of its broader Belt and Road Initiative, which seeks to improve infrastructure and promote economic cooperation between China and other countries.
The initiative has been criticized by some as a form of neo-colonialism, with concerns raised about the high levels of debt that participating countries may incur.
