Rand Merchant Bank (RMB) has successfully arranged a $1.8 billion financing package for the development of the Kano-Maradi railway, a major cross-border infrastructure project designed to strengthen economic ties between Nigeria and the Niger Republic.
The transaction marks one of the most significant regional transport financing deals in recent years and underscores growing efforts to improve connectivity, trade facilitation and infrastructure development across West Africa.
According to a statement issued by the bank, RMB acted as the Global Coordinator and initial Mandated Lead Arranger for the financing provided to Nigeria’s Ministry of Finance for the development, construction and commissioning of the 374-kilometre railway corridor linking Kano in northern Nigeria to Maradi in the Niger Republic.
The project is expected to serve as a strategic transportation artery, improving the movement of goods and people between both countries while opening new opportunities for commerce, investment and regional integration.
RMB disclosed that it worked closely with the Ministry of Finance over several years to structure and secure funding from a broad range of sources, including development finance institutions and local-currency financiers. The collaborative approach helped deliver a financing framework tailored to the scale and complexity of the project.
Speaking on the transaction, Executive Director and Head of Investment Banking at RMB Nigeria, Chidi Iwuchukwu, described the railway project as a transformative investment for the region.
“This pivotal transaction connects regional entities, supporting trade and development in the region. The RMB team demonstrated its skill in cross-border African transactions, arranging transport assets under EPC+f arrangements for sovereign borrowers,” he said.
The Kano-Maradi railway is widely regarded as a critical infrastructure initiative with the potential to boost economic activity across northern Nigeria and neighbouring Niger. Beyond facilitating trade, the project is expected to diversify transportation options, reduce logistics costs and improve regional supply chain efficiency.
The railway is also aligned with Nigeria’s broader infrastructure and sustainability objectives. Stakeholders believe the project will contribute to efforts aimed at reducing transport-related emissions and supporting the country's long-term environmental targets, including its commitment to cut emissions by 94 per cent by 2050.
RMB highlighted the role of its infrastructure and financing specialists in bringing the transaction to fruition. According to Iwuchukwu, several divisions within the bank worked together to develop a comprehensive funding structure for the project.
“We leveraged our multi-disciplinary capabilities, with the Syndications and Structured Solutions teams working alongside Infrastructure Sector Solutions to deliver a comprehensive funding solution to the Ministry of Finance of Nigeria,” he stated.
The bank also acknowledged the contribution of Mota-Engil Africa, the engineering, procurement and construction contractor responsible for delivering the project. RMB noted that its longstanding relationship with the company played a significant role in facilitating the financing arrangement.
Senior Dealmaker and Head of Infrastructure Finance at RMB Nigeria, Enyinna Anumudu, emphasized the importance of the partnership.
“Mota Engil Africa continues to serve as an important partner to RMB Infrastructure Sector Solutions as the leading EPC contractor on the African continent. RMB has supported Mota Engil across its operations in Africa, as well as on projects where Mota Engil is acting as the EPC and financing contractor for sovereigns such as Nigeria, as is the case with this project,” he said.
RMB further revealed that it collaborated extensively with the Africa Finance Corporation (AFC), a major financing partner and stakeholder in the project. The institution worked alongside other lenders and stakeholders over a three-year period to structure and execute the complex transaction.
Given the scale of the financing, the process involved extensive due diligence, regulatory compliance requirements, Know Your Customer (KYC) procedures and coordination among multiple funding institutions. RMB said it deployed significant resources to manage these processes and ensure successful execution of the deal.
Reflecting on the successful close of the financing arrangement, Iwuchukwu described the project as a milestone for regional infrastructure development and cross-border cooperation.
“RMB is proud to have acted as the Global Coordinator and Initial Mandated Lead Arranger for this landmark transaction. By making this financing available for critical infrastructure and fostering successful collaboration among all parties, we have facilitated transformative, cross-regional trade relationships.”
The Kano-Maradi railway project is expected to play a key role in deepening economic cooperation between Nigeria and the Niger Republic while enhancing regional connectivity and supporting long-term development goals across West Africa.
RMB Nigeria Limited is a member of the FirstRand Group and provides corporate and investment banking services across advisory, funding, trading, corporate banking and principal investing.