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Nairametrics
Home Sectors Real Estate and Construction

Nigeria secures $350 million from AfDB for Kano-Maradi Rail Project 

Caleb Obiowo by Caleb Obiowo
October 28, 2024
in Real Estate and Construction, Sectors
Nigeria secures $350 million from AfDB for Kano-Maradi Rail Project 
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The Federal Government of Nigeria has secured $350 million from the African Development Bank (AfDB) to fund the construction of the Kano-Maradi rail project, which will connect Kano to Maradi in Niger Republic.

The Chairman of the Senate Committee on Land Transport, Senator Adamu Aliero, made this disclosure on Monday during an oversight visit to the Nigeria Railway Corporation (NRC) headquarters in Lagos, as reported by the News Agency of Nigeria (NAN).

Aliero stated that the Kano-Maradi rail project is part of the government’s broader efforts to modernize Nigeria’s railway network and enhance regional trade links.

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“The Chairman, Senate Committee on Land Transport, Sen. Adamu Aliero,  says the African Development Bank has released $350 million to the Federal Government for construction of a rail line from Kano to Maradi,” the NAN report read in part.

He also highlighted that President Bola Tinubu’s recent visit to China focused on finalizing negotiations for 85% of the financing needed to upgrade and rehabilitate the nation’s rail infrastructure.

Aliero disclosed that the supplementary budget recently passed by the National Assembly allocated over N530 billion as counterpart funding for these modernization efforts. The remaining 85% of the funds will be sourced from institutions such as China Exim Bank, the International Finance Corporation, and AfDB.

What you should know 

The Federal Government has intensified efforts to modernize rail transportation across Nigeria, focusing on the timely completion of major rail projects.

  • One of the flagship initiatives is the 283.75 km Kano-Maradi railway, launched during the administration of former President Muhammadu Buhari. This strategic rail line will span Kano, Jigawa, and Katsina states, extending into Maradi in Niger Republic, creating a vital corridor for regional trade and connectivity.
  • In 2020, the Federal Executive Council approved $1.96 billion for the project, reflecting its significance in enhancing transportation infrastructure. The railway is designed to streamline freight and passenger movement by integrating with existing road networks, promoting local economic growth, trade facilitation, and social development.
  • In 2021, the federal government solidified its partnership with Portuguese construction giant Mota-Engil through a Memorandum of Understanding (MoU) to build the Standard Gauge rail line.
  • The $1.8 billion contract—the largest in Mota-Engil’s history—covers the design, construction, supply, and financing of rolling stock for the railway.

In May 2024, Minister of Transportation Saidu Alkali announced that the first segment, the Kano-Daura section, will be completed by 2025. Two months later, Portugal’s Ambassador to Nigeria, Jorge Adao Martins Dos Santos, confirmed that the entire project remains on track to be completed within two years, with Portuguese firms leading the construction.


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Tags: African Development BankKano-Maradi rail projectMota-Engil
Caleb Obiowo

Caleb Obiowo

Caleb Obiowo is a graduate of Urban and Regional Planning from the University of Uyo. At Nairametrics, he covers transport and logistics in Nigeria, along with real estate, construction, and aviation. He focuses on delivering clear, easy-to-understand stories and often digs deeper into industry issues through conversations with key players.

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