The China Development Bank (CDB) has approved a $254.76 million (€245 million) loan to support the Kano-Kaduna railway project in Nigeria. Announced on Tuesday via the bank’s website, the funding aims to ensure seamless progress on the 203-kilometer standard-gauge rail line, which will link Kano, a commercial hub in northern Nigeria, to Abuja, the nation’s capital.

Once operational, the railway is expected to improve regional connectivity, provide safer and more efficient transportation, and spur economic growth by fostering industrial development along its route. The project will also create significant employment opportunities during construction and operation.

The railway is part of the Third Belt and Road Forum for International Cooperation and is being executed by the China Civil Engineering Construction Corporation (CCECC). Following the withdrawal of China Exim Bank as the initial funder, the CDB stepped in as the primary financier. The bank affirmed its commitment to working closely with the Nigerian government to manage the disbursement of funds and ensure effective project execution.

President Bola Tinubu has reiterated the federal government’s commitment to completing key railway projects, including the Kaduna-Kano line, which is projected to finish by year-end. Additionally, ₦44.4 billion has been allocated in this year’s budget for other rail projects, such as the Abuja-Kaduna and Lagos-Ibadan railways.

In a related development, China’s Foreign Minister Wang Yi is scheduled to visit Abuja on Wednesday. His visit aims to strengthen diplomatic and economic ties between Nigeria and China, focusing on infrastructure and mutual cooperation.