The China Development Bank (CDB) has approved a $255 million loan to Nigeria for the construction of a new railway linking Kano and Kaduna. This project aims to improve connectivity between northern Nigeria and the capital, Abuja, via a modern 203-kilometre standard-gauge railway line. The funding aligns with the Nigerian government’s infrastructure development goals under its Economic Recovery and Growth Plan (ERGP).
The railway is being built by the China Civil Engineering Construction Corporation (CCECC), which has a history of managing similar large-scale projects in Nigeria. With a total project cost of $973 million, the approved loan forms a crucial portion of the financing, with the Nigerian government expected to provide the remaining funds. Upon completion, the railway is expected to handle significant cargo and passenger traffic, easing pressure on the nation’s roads.
This initiative is part of China’s ambitious Belt and Road Initiative (BRI), which seeks to foster global trade connectivity through infrastructure development. Nigeria has been one of Africa’s biggest beneficiaries of Chinese investments under the BRI framework. In addition to the Kano-Kaduna railway, China has supported projects like the Abuja-Kaduna and Lagos-Ibadan rail lines.
Critics, however, have raised concerns about Nigeria’s rising debt to China, urging the government to ensure transparency in loan agreements. According to a report by the Debt Management Office, Nigeria’s debt to China stood at over $4 billion as of late 2024, sparking debates over the country’s ability to service such obligations.
Once operational, the railway is expected to generate employment opportunities and boost economic activities in northern Nigeria. By reducing travel time and improving safety, it will enhance the overall ease of doing business, particularly for industries dependent on timely transportation.
