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Reading: China Development Bank approves $254.76m loan for Kano-Kaduna railway
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The News God > Blog > News > China Development Bank approves $254.76m loan for Kano-Kaduna railway
News

China Development Bank approves $254.76m loan for Kano-Kaduna railway

Alfred Abaah
Last updated: January 9, 2025 6:58 pm
Alfred Abaah - News Editor
January 9, 2025
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3 Min Read
Nigeria Railway
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The China Development Bank CDB has approved a significant loan worth 254.76 million dollars for the construction of the 203-kilometer Kano-Kaduna railway in Nigeria. This project, set to revolutionize the country’s transportation infrastructure, is a vital part of Nigeria’s national efforts to improve connectivity and boost economic development across the northern region.

The Kano-Kaduna railway is expected to significantly enhance the mobility of both goods and people between Kano, the largest city in northern Nigeria, and Kaduna, an important commercial and cultural center. This railway will also link Abuja, Nigeria’s capital, to the broader northern trade corridor, facilitating faster and more efficient transportation for both passengers and freight. The project is expected to ease the flow of goods, particularly agricultural products, and connect industries along the railway route, promoting further economic growth.

The loan, approved by China’s largest development finance institution, is part of the larger China-Nigeria cooperation under the Belt and Road Initiative BRI. The Chinese-funded project will be executed by the China Civil Engineering Construction Corporation CCECC, which has extensive experience in large-scale infrastructure projects across Africa.

The railway is anticipated to provide significant job opportunities for Nigerians during its construction and operation. Thousands of local workers will be employed in the construction phase, while the completed railway will create additional opportunities in transportation, logistics, and trade sectors. The project is also expected to encourage the growth of industries along the railway route, as it will open new markets for manufacturers and exporters in northern Nigeria.

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Nigeria’s government has welcomed the loan as a critical investment in its infrastructure, noting that this project is a strategic step in the country’s plans to modernize its transport systems. It is hoped that this development will increase the efficiency of transportation networks, reduce travel times, and ease the burden on existing roads and highways, which are often congested and in poor condition.

The approval of the loan is seen as a testament to the growing relationship between China and Nigeria, both of which view this project as an important milestone in their economic and infrastructural cooperation. Following the success of previous railway projects funded by China, this new initiative is expected to make a lasting impact on Nigeria’s development.

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