Nigeria has obtained $1.3 billion in financing to complete a railway project that will link Kano, the largest city in the north, with the city of Maradi in neighboring Niger, the local media reported on Tuesday, citing the transport ministry.
"The securing of $1.3 billion signifies a monumental step forward in the completion of this critical infrastructure, which is poised to strengthen the socioeconomic ties between Nigeria and the Niger Republic," transport ministry spokesperson Jamilu Ja'afaru said, as cited by the local media.
The road is aimed to improve regional trade, foster community development and facilitate cultural interchange, according to the report.
"This rail link, a key component of President Tinubu’s Renewed Hope Agenda, is set to enhance regional trade, community development, and cultural exchange, aligning with the administration’s unwavering commitment to national development and a more interconnected African continent," Ja'afaru was quoted as saying.
A consortium headed by the China Civil Engineering Construction Company will provide the money for this project, contributing 85% of the total expenditure, as reportedly stated by the transport ministry.
The Nigerian government, along with organizations such as the African Export-Import Bank and the African Development Bank, would cover the remaining 15%, the media revealed.
According to another local report, the Federal Government of Nigeria convened a meeting with a consortium of financial institutions, that have indicated their willingness to provide the necessary funds for the successful execution of the rail project.
Thus, the Minister of Transportation, Saidu Alkali, reportedly assured the group that his management team would provide all the paperwork and explanations required to persuade potential investors to finance the project.
Moreover, Alkali promised the investors a favorable return on investment and a safe environment in collaboration with the nation's transportation industry, the media said.
Mohammed Abdul-Razaq, senior vice president of the Africa Finance Corporation, reportedly revealed that the team had interactive engagements with the Ministers of Finance, Environment, Mines, and Steel Development as part of the due diligence process and had just returned to Abuja after visiting the project sites to verify the received reports, the media said.
Lastly, Fidet Okhiria, Managing Director of the Nigeria Railway Corporation, reportedly stated that the federal government would install a digital security system on the Kano-Maradi rail track. Once installed along the rail lines, it will allow security personnel to identify and respond to impacts on the rail lines.
At the end of last month, Tanzania also inked a $91.76 million financing agreement with the African Development Bank to kick-start the construction of a modern railway infrastructure that will connect Tanzania with its neighboring nations, Burundi and the Democratic Republic of Congo.
The project is an essential part of the wider Standard Gauge Railway network, which extends from the port of Dar es Salaam to enable connectivity with other nations via the major traffic corridor.