The People's Republic of China has approved a landmark $254 million loan to support the Nigerian government’s ambitious infrastructure development program. The loan will be allocated for the construction of the Kano-Kaduna Railway, a major transportation project that promises to enhance regional connectivity, boost trade, and stimulate economic growth in Nigeria.
The approval, which was granted following months of negotiations, marks a significant step in Nigeria's infrastructure modernization under President Bola Ahmed Tinubu's administration. The Kano-Kaduna Railway is a key component of the government's broader vision to revamp the nation's transportation system, ease congestion on roads, and improve trade routes across the northern region of the country.
The loan agreement was signed by the Nigerian Ministry of Finance and China’s Export-Import Bank, marking the beginning of a new phase in bilateral economic cooperation between the two nations. The funding will be utilized to construct modern rail infrastructure linking Kano, a vital economic hub in Nigeria’s northern region, with Kaduna, one of the most important commercial cities in the country.
In a statement, President Tinubu expressed his gratitude to the Chinese government for the continued support and partnership, which he believes will be transformative for the nation’s economy. "This railway project is not just about building infrastructure. It is about laying the foundation for a more connected, prosperous, and sustainable future for all Nigerians," President Tinubu said. "We are committed to modernizing our transport network to foster economic growth, improve access to markets, and reduce transportation costs across the region."
The Kano-Kaduna Railway is expected to enhance the movement of goods and people, thereby boosting local businesses and creating thousands of jobs. Additionally, the project is poised to stimulate growth in the agricultural and manufacturing sectors by improving access to critical supply chains.
The Chinese government has previously supported several infrastructure projects in Nigeria, including the Abuja-Kaduna Railway, and has been a key partner in the development of Africa's rail sector. China's engagement in Nigeria is also seen as part of the broader China-Africa cooperation, which focuses on infrastructure, trade, and investment to boost economic development across the continent.