The China Development Bank has approved $254.76 million loan for the Kano-Kaduna railway project in Nigeria. The bank announced the loan approval on its website on Tuesday, noting that the loan will ensure a quick completion of the rail project without delay.
The bank noted that “going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.”
Also, the bank said that the railway project construction is moving smoothly, emphasising its commitment to continued collaboration with the Nigerian government to ensure the timely disbursement of funds and effective management of subsequent phases of the project.
The Kano-Kaduna rail project is a key initiative under the Third Belt and Road Forum for International Cooperation. It is executed executed by the China Civil Engineering Construction Corporation (CCECC), with funding provided by the China Development Bank.
The project is designed to enhance regional connectivity with a safe, efficient and convenient system of transportation. Also, it is expected to promote economic activity along its route while creating job opportunities in the construction and operational phase.
The Kano-Kaduna project is captured under the 2025 budget alongside other infrastructure projects all of which are allocated N44.4 billion. However, with a huge budget deficit and a growing debt portfolio, the government might not be able to meet up with its obligation.
To avoid a looming financial crisis, the government recently announced how it plans to finance the budget deficit and meet up with its projection for the new year.
