China Development Bank has announced a loan of $254.76 million to Nigeria for a railway initiative connecting the northern states of Kano and Kaduna. This announcement comes just before a visit to Nigeria by China's top diplomat this week.
As part of his annual New Year tour of Africa, China's Foreign Minister Wang Yi is scheduled to arrive in Nigeria on Wednesday, with meetings planned with President Bola Tinubu and other senior officials on Thursday, according to Nigeria's foreign affairs ministry.
The construction of the Kaduna-to-Kano rail project, which has an estimated total cost of $973 million, has faced delays due to funding issues. In a statement on its website, China Development Bank indicated that the loan aims to facilitate the timely advancement of the 203-kilometre (126-mile) standard-gauge railway.
"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.
Nigeria's parliament initially sanctioned China's Exim Bank as the financial backer for the rail project in 2020; however, the bank subsequently retracted its involvement.
The Kano-Kaduna railway initiative is a component of China's Belt and Road Initiative and is being developed by the China Civil Engineering Construction Corporation.
This project aims to facilitate the transportation of people and goods in an area where road users are often targeted by armed groups that engage in kidnapping for ransom.
China ranks as one of Nigeria's foremost bilateral lenders, extending financial support for infrastructure projects including roads, railways, and power facilities.