Nigeria secures new financier for Kaduna-Kano rail project

• Published On: 16 March 2025 at 19:31

The Nigerian Senate has announced the China Development Bank as the new financier for the Kaduna-Kano rail modernisation project, paving the way for its completion.

This development follows the withdrawal of the previous financier, China Exim Bank, in 2020 due to complications caused by the COVID-19 pandemic. Dada Olusegun, President Bola Tinubu's Special Assistant for Social Media, confirmed the funding shift in an official statement.

The Kaduna-Kano railway is a 203-kilometer standard-gauge line that connects Kano to Nigeria's capital, Abuja. The railway project is an important component of the larger Ibadan-Abuja-Kaduna-Kano line, a critical infrastructure initiative aimed at improving transport and trade in Nigeria.

In January, the China Development Bank approved $255 million in funding for the Kaduna-Kano rail project, which is currently being built by the China Civil Engineering Construction Corporation. The project will include new stations in Rigachukun, Zaria, and Kano, as well as connections to the Lagos-Ibadan and Kano-Maradi rail lines, which will improve regional connectivity.

The China Development Bank reaffirmed its support for the project, citing its potential to improve regional transportation. "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," according to the lender.

The $973 million Kaduna-Kano rail project has been delayed due to funding issues. Transportation Minister Saidu Alkali previously stated that China is funding the Kaduna-Kano and Ibadan-Abuja segments of the Lagos-Kano railway through the Belt and Road Initiative.

The majority of these projects use the EPC+F model (Engineering, Procurement, Construction, and Financing), which requires 15% counterpart funding from Nigeria's federal government and 85% secured through loans. However, financial institutions have been cautious due to concerns about the high risks associated with railway projects.

Despite these challenges, President Bola Tinubu has reiterated his commitment to completing the Ibadan-Abuja-Kaduna-Kano railway project, which builds on former President Muhammadu Buhari's efforts to modernise Nigeria's railway infrastructure.

"The Ibadan-Abuja-Kaduna-Kano railway project will be completed to the satisfaction of Nigeria and West Africa at large," Mr. Tinubu stated.

The Federal Government plans to complete the Kaduna-Kano rail line by the end of this year. In addition, plans are in place to start a high-speed rail project connecting Abuja and Lagos within the same time frame.