AfDB endorses $350 million loan for Kano-Maradi rail
…as Nigerian Senate pushes for nationwide rail modernization
By Kunle Sanni
The African Development Bank (AfDB) has approved a $350 million loan to support the construction of a railway connecting Kano, Nigeria, to Maradi in Niger Republic, as confirmed by officials. This project marks a significant stride in Nigeria’s drive to enhance trade and economic ties with neighboring West African nations.
Senator Adamu Aliero, Chairman of the Senate Committee on Land Transport, highlighted the National Assembly’s commitment to President Bola Tinubu’s Renewed Hope Agenda and the Nigerian Railway Corporation’s (NRC) mission of modernizing the nation’s rail infrastructure. His remarks came during an oversight inspection of the NRC’s Lagos-Ibadan standard gauge railway.
In an interview with newsmen, Aliero emphasized the importance of the Nigerian Railway Masterplan, a 25-year strategy launched under former President Olusegun Obasanjo, which aims to fully modernize and rehabilitate Nigeria’s rail network by 2025.
The National Assembly’s recent reviews of strategic rail corridors, including the Abuja-Kaduna and Kano-Maradi lines, reflect ongoing efforts to evaluate and support infrastructure progress.
Aliero stressed the Senate’s determination to ensure the NRC’s success in implementing the modernization plan. “We’ve visited multiple corridors, and this is the third inspection as part of our commitment to supporting the NRC’s objectives,” he said.
In addition to the AfDB’s loan for the Kano-Maradi rail line, Aliero announced that a supplementary budget of N530 billion has been approved for 2024, with the next year’s budget in development.
The supplementary funding will be bolstered by counterpart funding, with 85 percent expected from the China Exim Bank, the International Finance Corporation (IFC), or the AfDB. These funds will be allocated to key modernization and rehabilitation projects across the national railway system.
According to Aliero, the AfDB’s recent approval of $350 million specifically targets the Kano-Maradi line, while the Nigerian President has successfully renegotiated additional funding from the Chinese government for the Ibadan to Kano route.
During the inspection of the Lagos-Abeokuta and Abeokuta-Ibadan sections, the Senate Committee expressed satisfaction with the progress of freight operations between Apapa Ports and the Inland Cargo Depot (ICD) in Ibadan on both the standard and narrow gauge lines. This new infrastructure is expected to facilitate improved logistics and connectivity across Nigeria’s major trade routes.
Aliero, joined by Committee Vice Chairman Senator Benson Friday Kombowei and other Senators, received a guided tour from NRC’s Acting Managing Director, Ben Iloanusi, and senior NRC officials.
“We are very pleased with the facilities,” Aliero stated, noting that the automated ticketing systems have effectively minimized fraud and improved service efficiency. “What we have seen here can compete with systems in Europe and America. The ticketing process, managed by service providers, adheres to the Fiscal Responsibility Act, with revenue shared between the providers and the federal government.”
He also praised the technical services witnessed at the Kajola maintenance facility, managed by Chinese firms CCECC and CRCC. Aliero expressed optimism about the measures in place for skill transfer, which he believes will allow Nigerian engineers to maintain locomotives, coaches, and soon assemble wagons locally.
“This is crucial for job creation and will foster a culture of maintenance among Nigerians. With adequate training, our engineers can match the technical standards of their international counterparts,” he concluded.