The Senate of Nigeria has just announced China Development Bank as the new Kaduna-Kano Rail Project Financier. This major announcement signals that the project is headed for completion.

This announcement comes in following the withdrawal of the previous financier, China Exim Bank. China Exim Bank withdrew from the railway project in the year 2020. This was as a result of issues related to Covid-19 pandemic, according to a statement that was issued by Special Assistant to President Bola Tinubu, Dada Olusegun.

Project Factsheet

Length: 203 kilometers

Route: Connects Kaduna to Kano, enhancing linkage between northern Nigeria and the federal capital, Abuja

Gauge: Standard gauge

Stations: New stations planned at Rigachukun, Zaria, and Kano

Funding and financial arrangements:

• Total Project Cost: Approximately $973 million
• Primary Financier: China Development Bank
• Recent Funding: In January 2025, the China Development Bank approved a loan of $254.76 million to support the project’s advancement
• Previous Financier: China Exim Bank was initially involved but withdrew in 2020 due to challenges related to the COVID-19 pandemic

Construction and development

• Contractor: China Civil Engineering Construction Corporation (CCECC)
• Construction Commencement: July 2021
• Current Progress: As of January 2025, the project has achieved more than 22% completion

Significance

• Economic Growth: The railway is expected to stimulate economic activities along its route, promoting industrial development and creating job opportunities
• Transportation Efficiency: Provides a safer, faster, and more efficient alternative to road travel between Kaduna and Kano, thereby improving the movement of people and goods
• Regional Connectivity: Enhances access to Abuja and integrates with other rail lines, such as the Lagos-Ibadan and Kano-Maradi railways, strengthening Nigeria’s transportation network

Challenges and considerations

• Funding Delays: The project has experienced delays primarily due to funding challenges, including the withdrawal of the initial financier and the need to secure alternative funding sources
• Security concerns: The region has faced security issues, which could impact construction timelines and operational safety

The Kaduna-Kano railway project is a 203-kilometer standard gauge railway line. This ambitious railway project is designed to connect Kano to the capital of Nigeria, Abuja.

Kaduna-Kano Rail Project Financier Approves Funds for the Project

In January, China Development Bank approved $255 million funding for the Kaduna-Kano section of the railway. This project is currently under construction and is being built by the China Civil Engineering Construction Corporation (CCECC).

This rail project is inclusive of new stations at Rigachukun, Zaria, and Kano. It is expected to link with the Lagos-Ibadan and Kano-Maradi railway lines. This will therefore enhance the general access to Abuja.

The overall cost of this project is estimated at $973 million. Additionally, the Federal Government made an announcement that the construction works on the Kaduna-Kano railway line is expected to be finished by the end of this year. The government also expressed another ambitious plans that will foresee the commencement of a high-speed rail line from Abuja to Lagos within the same time frame.