Chinese Bank Approves Millions of Dollar Loan for Project in Nigeria
- The China Development Bank (CDB) has granted a loan of 245 million euros ($254.76 million) to construct the Kano-Kaduna railway project
- According to a bank statement, the measure was taken to provide financial support for the project's seamless progress
- The project is being constructed by the China Civil Engineering Construction Corporation (CCECC) using funding provided by the CDB
CHECK OUT: Education is Your Right! Don’t Let Social Norms Hold You Back. Learn Online with LEGIT. Enroll Now!
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
A loan of 245 million euros ($254.76 million) has been provided by the China Development Bank (CDB) to build the Kano-Kaduna railway project in Nigeria.
Source: Getty Images
The action was made to give financial support for the project's smooth progress, according to a statement released by the bank on Tuesday, January 8th, 2024
Channels reported that with a total length of 203 kilometers, the Kano-Kaduna railway is standard gauge. After it is finished, Kano and Abuja will have direct rail communication.
“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,” the statement partly said.
Financial assistance
With financial assistance from the CDB, the China Civil Engineering Construction Corporation (CCECC) is building the project.
According to the CDB, it will collaborate closely with the Nigerian side in the upcoming phase to guarantee the loans' continuous disbursement and efficiently oversee the work's completion.
Meanwhile, Legit.ng reported that the federal government of Nigeria was facing international embarrassment after a French court seized three presidential jets following a legal dispute with a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited.
The seizure is linked to a contract dispute with the Ogun state government, which terminated a contract with Zhongshan in 2016 and failed to pay the $74.5 million awarded by an arbitral tribunal.
The Chinese firm has also obtained an order from a U.S. appeals court to seize other Nigerian assets abroad. The Nigerian government has accused Zhongshan of fraud and fraudulent attempts to strip the country of its assets.
The incident has sparked criticism from various quarters, including political figures and the public. It highlights concerns over handling international contracts and the potential impact on Nigeria's diplomatic relations and national image.
Nigerians have however expressed concern over the debts owed to China by the Nigerian government over the years.
Nigerian govt ready to repay China, others
Legit.ng reported that the Debt Management Office (DMO) has assured Nigerians that the federal government will fulfil its domestic and foreign debt obligations in 2025.
The debt office said sufficient budgetary provisions in the N47.9 trillion 2025 Appropriation Bill cover local and foreign debt.
The reassurance follows concerns over Nigeria’s rising debt servicing commitments, with N15.81 trillion earmarked for this purpose in the proposed budget, Punch reports.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
