Nigeria’s Senate has approved China Development Bank as the new financier for the country’s Kaduna-to-Kano rail project at a revised cost of $973 million after another Chinese lender withdrew from the project in 2020, lawmakers said on Tuesday.
“Rescind its decision on the financier and harmonized terms and approve the change of Financier from China Exim Bank to China Development Bank; and Approve relevant conditions provided in the harmonized term sheet listed below:
“Segment Kaduna-Zarai-Kano Financier China Development Bank Type of Loan Commercial Loan Maturity 15 Years Currency Euro Interest Rate 2.7 percent + 6 months Euribor Commitment Fee 0.4 percent Upfront Fee 0.5 percent,” according to a statement on the Senate Twitter handle on Tuesday.
On January 28, Nigeria signed a Memorandum of Understanding (MoU) with the Republic of Niger on the Kano-Maradi rail line construction.
The MoU was signed by the Minister of Transportation, Mu’azu Jaji Sambo, and the Minister of Transportation of the Republic of Niger, Alma Oumarou, who represented his country, in Abuja accentuate the importance of the rail constructions.