The China Development Bank (CDB) has provided a €245 million ($254.76 million) loan to support the construction of the 203-kilometer Kano-Kaduna standard gauge railway project in Nigeria. Once completed, the railway will directly link Kano and Abuja, fostering regional connectivity, economic growth, and job creation along its route.
The China Civil Engineering Construction Corporation (CCECC) is building the railway, with the CDB committed to ensuring smooth disbursement of funds and overseeing project completion. The initiative is listed as part of the Third Belt and Road Forum for International Cooperation’s practical projects.
However, Nigeria faces scrutiny over its financial dealings. A French court recently seized three Nigerian presidential jets following a legal dispute with Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese firm. The dispute stems from a terminated contract with the Ogun State government in 2016 and an unpaid $74.5 million arbitral award. The Chinese firm has also secured orders to seize other Nigerian assets abroad, escalating concerns over Nigeria’s management of international contracts.
Public criticism has intensified over Nigeria’s rising debt to China. Nonetheless, the Debt Management Office (DMO) reassures Nigerians that provisions in the N47.9 trillion 2025 Appropriation Bill will cover both local and foreign debt obligations. With N15.81 trillion allocated for debt servicing, the federal government aims to meet its commitments while addressing concerns over the nation’s growing debt burden.
The developments underscore Nigeria’s challenges in balancing infrastructure investments with fiscal responsibility and maintaining its international reputation.
