China Development Bank Releases $255 Million Loan for Rail Project in Nigeria
- China Development Bank has released the sum of $255 million to Nigeria for the proposed Kano-Kaduna railway project
- The 203-kilometre railway project will connect Kano, FCT and Kaduna and is a part of China's BRI project
- This is only one of several loans originating from China that are to be used for infrastructural development project
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Ahead of a proposed visit from a Chinese diplomat, the China Development Bank (CDB) has released a $254.76 million (245 million euros) loan to Nigeria for a rail project that will connect Kano and Kaduna states.
This loan came just a few days before China's Foreign Minister Wan Yi was scheduled to visit Nigeria for his annual New Year tour of Africa.
According to information from Nigeria’s foreign affairs ministry, President Bola Tinubu and other government officials will meet with the Foreign Minister later this week.
Source: UGC
The Kano-Kaduna rail project
Information on the China Development Bank website states that the loan will provide funding for the construction of a 203-kilometre (126-mile) standard-gauge railway running from Kaduna to Kano.
The entire project is projected to cost almost a billion dollars ($973 million), but it has not made much progress due to the delay in the release of funds.
The railway project will be constructed by the China Civil Engineering Construction Corporation (CCECC), and will eventually merge to be part of the China’s Belt and Road Initiative (BRI).
Once completed, the rail project will connect the commercial capital of the North – Kano state – to Nigeria’s capital city, giving Nigerians a safe and efficient transportation option, CDB said.
The statement said;
“This railway will also promote the development of related industries along the route. The construction and operation of the project will create numerous job opportunities in Nigeria. The Kano-Kaduna railway project has been included in the list of practical cooperation projects for the Third Belt and Road Forum for International Cooperation. This project is being constructed by China Civil Engineering Construction Corporation, with financing support provided by the CDB.”
CDB also pledged to work closely with the Nigerian team on the project to ensure effective progress and speedy disbursement of the loan funds.
Recall that former President Olusegun Obasanjo recently commended China's BRI project, saying it would open Nigeria and Africa up to cross-continental trade.
Chinese Diplomatic team arrive Nigeria
In related news, Legit.ng reported that President Bola Tinubu had received a visiting team from China.
The team, led by Chinese Minister of Foreign Affairs, H.E Yi, arrived at the Presidential Villa, Abuja, and entered a closed-door session with President Tinubu.
As a prelude to this meeting, Nigeria's Minister of Foreign Affairs, Ambassador Yusuf Tuggar, already met with his Chinese counterpart and members of his delegation at the Ministry of Foreign Affairs in Abuja.
The meeting aimed to strengthen bilateral relations between Nigeria and China, focusing on cooperation in key sectors such as trade, investment, health, technology, and infrastructure development.
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Source: Legit.ng
