Kaduna-Kano rail: Senate names China Development Bank as new financier
The Nigerian Senate has confirmed the China Development Bank as the new financier for the Kaduna-Kano rail modernisation project, marking a significant step towards its completion.
This development comes after the withdrawal of China Exim Bank as the initial financier in 2020, a decision attributed to complications arising from the COVID-19 pandemic. The announcement was made by Dada Olusegun, Special Assistant to President Bola Tinubu on Social Media.
The Kaduna-Kano railway, a 203-kilometre standard-gauge line, is a crucial component of Nigeria’s railway expansion strategy, aimed at linking Kano with the nation’s capital, Abuja. President Bola Tinubu has reaffirmed his dedication to ensuring the successful completion of the wider Ibadan-Abuja-Kaduna-Kano railway project, building upon the progress initiated by his predecessor, Muhammadu Buhari, in transforming the country’s rail infrastructure.
In January, the China Development Bank approved $255 million in funding for the Kaduna-Kano section, which is currently under construction by the China Civil Engineering Construction Corporation (CCECC).
This segment includes the establishment of new stations at Rigachukun, Zaria, and Kano. The railway will integrate with the Lagos-Ibadan and Kano-Maradi lines, improving accessibility to Abuja and reinforcing Nigeria’s transport network.
The China Development Bank reiterated its support for the project, underlining its potential to significantly improve regional connectivity. In a statement, the bank noted that upon completion, the railway would establish a direct link between Kano, a key northern city, and Abuja, providing residents with a safer, more efficient, and convenient mode of transport.
The $973 million initiative has faced delays primarily due to funding constraints. Last year, Minister of Transportation Saidu Alkali explained that China remains committed to supporting both the Kaduna-Kano and Ibadan-Abuja segments of the Lagos-Kano railway as part of the Belt and Road Initiative.
Most railway projects in Nigeria operate under the EPC+F model (Engineering, Procurement, Construction, and Financing), which requires the federal government to contribute 15 per cent of the funding, while the remaining 85 per cent is sourced through external loans. However, securing these loans has proven challenging, as financial institutions remain cautious about the risks associated with large-scale railway projects.
The Minister further elaborated that the Nigerian government has actively engaged with China to obtain financing for these critical infrastructure developments. Responding to public concerns, President Tinubu reassured Nigerians that the railway project would reach completion and serve as a vital asset for both Nigeria and the broader West African region.
“The Ibadan-Abuja-Kaduna-Kano railway project will be completed to meet the expectations of Nigeria and the entire West African sub-region,” the President affirmed.
The Federal Government has recently projected that construction on the Kaduna-Kano rail line will be finalised by the end of this year. Additionally, plans have been outlined to commence work on a high-speed rail project linking Abuja and Lagos within the same timeframe.
