The Kaduna-Kano rail Project, estimated to cost $973 million, has faced delays primarily due to difficulties in securing funding.
Abuja, Nigeria – The Nigerian Senate has confirmed the China Development Bank (CDB) as the new financier for the Kaduna-Kano rail modernization project, paving the way for its completion.
This development comes after the withdrawal of the previous lender, China Exim Bank, in 2020 due to challenges stemming from the COVID-19 pandemic.
Dada Olusegun, Special Assistant on Social Media to President Bola Tinubu, disclosed this in a statement, highlighting the government’s commitment to advancing Nigeria’s railway infrastructure.
Revitalizing the Kaduna-Kano Rail Project
The Kaduna-Kano rail project, spanning 203 kilometers, is designed to enhance connectivity between Kano and Abuja. The initiative forms a key segment of the broader Ibadan-Abuja-Kaduna-Kano railway project, which President Tinubu has pledged to complete, building on the efforts of his predecessor, Muhammadu Buhari.
In January, CDB approved a $255 million loan to support the construction of the Kaduna-Kano section. The project is being executed by the China Civil Engineering Construction Corporation (CCECC) and will feature new stations at Rigachukun, Zaria, and Kano. Once completed, it will integrate with the Lagos-Ibadan and Kano-Maradi rail networks, significantly improving regional transportation.
In a statement, the China Development Bank reiterated its commitment to the project, emphasizing its potential to enhance mobility in northern Nigeria. “This railway will offer a safe, efficient, and convenient transportation option, linking Kano, a key northern commercial hub, to the federal capital, Abuja,” the bank noted.
Challenges and Government Efforts
The Kaduna-Kano railway, estimated to cost $973 million, has faced delays primarily due to difficulties in securing funding. The Nigerian government operates most railway projects under the EPC+F (Engineering, Procurement, Construction, and Financing) model, which requires 15% counterpart funding from Nigeria, with the remaining 85% covered by external loans. However, financial institutions have expressed concerns about the risks associated with railway investments, complicating loan approvals.
To address these challenges, the Nigerian government has sought financial support from China under the Belt and Road Initiative. Minister of Transportation Saidu Alkali previously assured that efforts were ongoing to secure the necessary funds for key infrastructure projects.
President Tinubu has reassured Nigerians of his administration’s dedication to completing the railway, emphasizing its significance for both Nigeria and the broader West African region. “The Ibadan-Abuja-Kaduna-Kano railway project will be completed to the benefit of Nigeria and West Africa at large,” he affirmed.
The Federal Government has projected that construction of the Kaduna-Kano rail line will be completed by the end of the year. Additionally, plans are in motion to launch a high-speed rail project between Abuja and Lagos within the same timeframe.
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