China Eximbank pledges to fund $6.7 billion for Nigerian Railway Modernization Phase IV (from Ibadan to Kaduna)

On February 20, 2018, The Federal Executive Council (FEC), presided over by President Muhammadu Buhari, on Wednesday approved 6.7 billion dollars for the construction of Ibadan-Kaduna standard gauge railway project. It is noted that since the Nigerians wanted to upgrade this part of the rail since 2006, but nothing concrete came until 2018. The new addition was the Oshogbo to Ado-Ekiti subdivision (Chinese name for the full project: 尼铁现代化项目(拉各斯至卡诺)第 4 号补充实施协 议伊巴丹至卡杜纳段含奥逊伯至阿杜 - 埃基蒂支线) . It is also reported that China Eximbank has agreed to fund the entirety of the project. The Federal Government of Niger has forward loan request documents to China Eximbank in March 2018. According to the Minister of Transportation, Rotimi Amaechi, the government is optimistic that China will release the loan this year so that work can commence on the project. Since it is unclear whether Eximbank has released the loan, the loan amount is estimated to be $6.7 billion. It is noted another report estimated it to be $5.678 billion. On May 16, 2018, China Civil Engineering Construction (中国土木工程集团) signed the EPC contract ($6.681 billion) with Nigeria. It is unclear whether construction has started.

Additional details

China Eximbank has repeatedly delayed the release of loans for Nigeria railway projects, so it is unclear how long funds will take to be officially committed to and/or disbursed.

Number of official sources

1

Number of total sources

8