Roland Iwuchukwu
China Development Bank has reportedly released a $254.76 million loan to Nigeria for a railway project.
The railway project is the one designed to link two northern States of Kano and Kaduna, the bank said, ahead of a visit by China’s top Diplomat this week.
As part of his annual New Year tour of Africa, China’s Foreign Minister Wang Yi will arrive in Nigeria on Wednesday and meet President Bola Tinubu and senior government officials on Thursday, Nigeria’s foreign affairs ministry said.
Construction of the Kaduna-to-Kano rail project, which is expected to cost $973 million, has been slowed by funding delays.
China Development Bank said in a statement on its website that the loan would provide financial support for the smooth progress of the 203-kilometre (126-mile) standard-gauge railway.
“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,” the bank said.
The National Assembly first approved China’s Exim Bank as financier for the rail project in 2020 but the Bank however backed off.
The Kano-Kaduna railway project is part of China’s Belt and Road Initiative and is being constructed by China Civil Engineering Construction Corporation.
It is also expected to ease movement of people and goods in a region, where road travellers face attacks from armed gangs who kidnap for ransom.
China is among Nigeria’s largest bilateral lenders, providing loans for roads, rail and power stations.