China development bank steps in to fund Kaduna-Kano rail project, completion expected by year-end

The Nigerian Senate has announced the China Development Bank (CDB) as the new financier for the Kaduna-Kano rail modernization project, paving the way for the long-delayed infrastructure to finally reach completion. This development follows the withdrawal of the previous financier, China Exim Bank, in 2020 due to challenges linked to the COVID-19 pandemic.

The Kaduna-Kano railway, a 203-kilometer standard-gauge line, is a critical segment of Nigeria’s broader Ibadan-Abuja-Kaduna-Kano railway project. Once completed, the rail line will connect Kano, a major economic hub in northern Nigeria, to Abuja, the nation’s capital. The project is expected to boost regional connectivity and provide residents with a safer and more efficient mode of transportation.

In January 2025, CDB approved $255 million in funding for the project, which is being executed by the China Civil Engineering Construction Corporation (CCECC). The railway will feature new stations in Rigachukun, Zaria, and Kano and will integrate with other key rail lines such as Lagos-Ibadan and Kano-Maradi. This strategic alignment aims to enhance access across Nigeria and neighboring regions.

In a statement reaffirming its support, the China Development Bank highlighted the transformative potential of the project. “Once completed, it will provide direct rail connectivity between Kano and Abuja, offering local residents a safe, efficient, and convenient mode of transportation,” the bank noted.

The $973 million Kaduna-Kano rail project has faced significant delays due to funding challenges. Under the Engineering, Procurement, Construction, and Financing (EPC+F) model used for such projects, Nigeria’s federal government is required to provide 15% counterpart funding while securing 85% through loans. However, financial institutions have been cautious about lending due to perceived risks associated with large-scale railway projects.

Despite these hurdles, President Bola Tinubu has reiterated his administration’s commitment to completing this vital infrastructure. Speaking on the broader Ibadan-Abuja-Kaduna-Kano railway initiative, Tinubu assured Nigerians that the project would be delivered to benefit both Nigeria and West Africa.

“The Ibadan-Abuja-Kaduna-Kano railway project will be completed to the satisfaction of Nigeria and West Africa at large,” he said.

In addition to completing the Kaduna-Kano rail line by year-end, the Federal Government has announced plans to commence work on a high-speed rail project connecting Abuja to Lagos within the same timeframe. These initiatives are part of Nigeria’s efforts to modernize its transportation infrastructure under Tinubu’s administration.

The Kaduna-Kano railway is expected not only to improve mobility but also to stimulate economic growth by creating jobs and facilitating trade across key regions in Nigeria. With renewed funding in place and construction ongoing, hopes are high that this long-awaited project will soon become a reality.

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