Faith Nyasuguta
The China Development Bank has announced a $254.76 million loan to Nigeria to fund the construction of a railway line connecting Kano and Kaduna, two major cities in the country’s northern region. This funding comes as China’s Foreign Minister Wang Yi visits Nigeria as part of his annual New Year tour of Africa. Wang is expected to meet with President Bola Tinubu and other senior officials during his trip.
The Kaduna-Kano railway project, launched in July 2021 by former President Muhammadu Buhari, is a significant part of Nigeria’s larger Lagos-Kano railway modernization plan. It aims to bolster the region’s economy by facilitating efficient movement of goods and passengers, reducing transportation costs, and improving access to markets.
A Promising Initiative with Challenges
The $973 million project promises to transform transportation in northern Nigeria by directly connecting Kano to Abuja, Nigeria’s capital. “Once completed, it will provide local residents with a safe, efficient, and convenient mode of transportation,” the China Development Bank stated.
However, the project has faced significant delays due to funding issues. Initially, Nigeria’s parliament approved China’s Exim Bank to finance the project in 2020, but the bank later withdrew its support. The China Development Bank has since stepped in to fund the initiative, while the construction is being handled by the China Civil Engineering Construction Corporation (CCECC).
Part of China’s Belt and Road Initiative
China’s involvement in Nigeria’s railway modernization aligns with its Belt and Road Initiative (BRI), a global infrastructure program aimed at enhancing economic cooperation. Critics, however, have raised concerns about the initiative, viewing it as a form of neo-colonialism that burdens participating countries with excessive debt.
In September, Nigeria and China committed to deepening their economic ties, signing agreements on nuclear energy, media exchanges, and infrastructure development under the BRI framework. This collaboration was further emphasized during a summit showcasing Chinese-African cooperation, where Chinese President Xi Jinping and Nigerian President Tinubu announced the elevation of their relationship to a “comprehensive strategic partnership.”
Strengthened Bilateral Ties
During the Forum on China-Africa Cooperation summit, President Xi highlighted the importance of Nigeria as a major developing country in strengthening Global South relations. “China and Nigeria, as major developing countries, strengthening strategic coordination will inject fresh impetus into China-Africa relations and spearhead common progress among Global South countries,” Xi said.
President Tinubu expressed optimism about the partnership, noting its potential to boost Nigeria’s economic development, stability, and security. “We are reforming our economy diligently through tax and tariff reviews and other measures to attract investments,” Tinubu stated. He also encouraged Chinese companies to expand investments in agriculture, manufacturing, and energy, emphasizing the importance of these collaborations for poverty reduction.
China’s Influence in Africa
Africa remains a focal point for China’s global infrastructure push under the Belt and Road Initiative. Chinese companies have signed contracts worth over $700 billion across the continent over the past decade, according to Beijing’s Ministry of Commerce.
This railway project indicates China’s commitment to strengthening its strategic partnerships in Africa, while offering Nigeria an opportunity to modernize its transportation infrastructure and stimulate economic growth. As construction proceeds, the collaboration between the two nations could set the stage for further bilateral development initiatives.
RELATED:
