Nigeria secures $1.3bn funding for rail link to Niger
Wednesday March 13 2024
Abuja-Kaduna train resumes services in Abuja, Nigeria on December 5, 2022. PHOTO | REUTERS
Nigeria has secured $1.3 billion in funding to complete a railway project connecting Kano, the largest city in the north, to Maradi in neighbouring Niger, the Transport Ministry said on Wednesday.
The railway line will build on existing economic and social ties to boost trade and cultural cooperation between the two countries.
Funding will come from a consortium led by the China Civil Engineering Construction Company (CCECC), which will contribute 85 percent of the total, the Transport Ministry said in a statement.
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The remaining 15 percent will be covered by the Nigerian government alongside institutions like the Africa Export-Import Bank and African Development Bank (AfDB).
"The securing of $1.3 billion signifies a monumental step forward in the completion of this critical infrastructure," Transport Ministry spokesperson Jamilu Ja'afaru said.
In July, Portugal's largest builder Mota-Engil signed a $919 million contract to supply and finance railway rolling stock for the project.
Nigeria's government has sought to rebuild the impoverished north of the country, parts of which have been ravaged for the past decade by Islamist insurgents.
The project is part of a government plan to build rail networks across Nigeria to address the poor transport infrastructure that has stymied economic growth for decades.