Completed Mixed AidData Chinese Aid

China Eximbank provides $500 million preferential buyer’s credit for Phase 1 (Abuja-Kaduna Section) of Nigerian Railway Modernization Project (Linked to Record ID#1844, #60848, #60767, #60850)

$500K USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Nigeria
Country	Nigeria
Start Date	Dec 20, 2010
End Date	Nov 12, 2031
Duration	7,632 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`195`

Grant Description

China Eximbank provides $500 million preferential buyer’s credit for Phase 1 (Abuja-Kaduna Section) of Nigerian Railway Modernization Project On December 20, 2010, China Eximbank and the Government of Nigeria signed a $500 million preferential buyer’s credit (PBC) agreement for Phase 1 (Abuja-Kaduna Section) of the Nigerian Railway Modernization Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2.5%

The final maturity date of the loan is September 21, 2030.

China Eximbank required that the borrower open two bank accounts: an escrow (revenue) account and a sinking fund (debt service reserve) account.

The borrower and Nigeria Railway Corporation (NRC) were required to (a) deposit all railway (project) revenues deposited in an escrow account and (b) maintain a minimum cash balance in a sinking fund (debt service reserve) account.

As of December 31, 2020, Nigeria’s Debt Management Office (DMO) reported that the China Eximbank PBC (loan) had achieved a 100% disbursement rate ($500 million) and the borrower had made interest repayments worth $79.68 million and principal repayments worth $115.38 million to the lender. As such, the loan’s (principal) amount outstanding, as of December 31, 2020, was $384.62 million.

As of 2021, the cash balance of the escrow (revenue) account was NGN 420.46 million ($1,044,002.18).

Phase 1 of the project involved the modernization of a 186.5 km railway section from Abuja (Idu), the country’s federal capital, to Kaduna, the country’s commercial capital.

The railway section is part of a larger 1,313 km standard gauge railway that runs from Lagos to Kano and carries both passenger and cargo. China Civil and Engineering Construction Company (CCECC) was the contractor responsible for implementation. CCECC signed an EPC contract with the Government of Nigeria on October 26, 2009.

Construction began on February 20, 2011. Then, on July 4, 2013, a track-laying ceremony took place. The construction of the railway was completed in December 2014. The railway officially began commercial operations on July 28, 2016. In 2020, Pew Research Center released an analysis of this project.

It found that, during the railway’s construction period, Nigerians living near the railway were less likely than those farther away to express a favorable view of China.

However, approval of China among those nearby rebounded to levels more in line with other Nigerians after the railway’s completion.

📋 Staff Comments

This project is also known as Phase 1 (Idu-Kaduna) of Nigerian Railway Modernization Project or Segment 1 of the Lagos-Kano Railway Project. The Chinese project title is 阿布贾-卡杜纳段（阿卡铁路） or 为尼铁现代化项目分段实施的第一段工程.
In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not record a grace period and it records the maturity length of this loan as 19-years. AidData records the borrowing terms (7-year grace period and 20-year maturity) that are reported by Nigeria’s Debt Management Office (DMO) in its ‘Loans Obtained from China Exim As At December 31, 2020’ publication.

📚 Sources & References

PROGRESS UPDATE OF NIGERIA’S LAGOS-KANO RAILWAY MODERNIZATION PROJECT
Government
China Sign Bilateral Agreement.
The Real Cost of Chinese Railway Construction in Nigeria
Railway Going Nowhere Fast
Nigeria Signs Infrastructure Agreement with Chinese Firm
RAIL
China Railway Builder
Nigeria Sign $8.3 Billion Deal
尼日利亚交通部与中国公司签署修建铁路补充协议
Moises Naim and the $9 Billion Dollar Myth
NIGERIAN METRO RAIL THREAD
China’s Engagement with the Nigerian Oil Sector
Nigeria: FG Signs U.S.$1.49 Billion Rail Contract With China
New railway lines to be executed says Minister
VP Sambo lays track for Abuja-Kaduna fast train
Minister endorses $1.4 billion Lagos – Ibadan rail project
Nigeria to sign off on $3 billion in Chinese loans
Chinese firm lays foundation stone for major light rail project in Nigeria
Chinese President Begins Africa Tour
Nigeria Not On Itinerary
Chinese firm commences track laying in Nigeria's modern railway project
Nigeria borrows $600m from China bank
FG
China Exim Bank Seal $600m Deal on Abuja Light Rail
Galaxy Backbone
PRESENTATION OF FINANCIAL AND OTHER INFORMATION
Abuja-Kaduna Rail Line
A b u j a L i g h t R a i l
Infrastructure Financing Trends in Africa – 2016, 7月26日，尼日利亚铁路现代化项目第一标段阿布贾-卡杜纳铁路举办通车运营典礼。尼总
尼日利亚阿卡铁路正式通车运营
人民日报：尼日利亚有了首条“双线”铁路
Ambassador Xu Jianguo Attends the Contract Signing Ceremony for Railway Project
FOCAC a Major Platform for Belt and Road Cooperation
Abuja-Kaduna rail costs N1.7bn per kilometre
Abuja-Kaduna rail costs N1.7bn per kilometre
FG Prevails On China to Effect Drawdown of U.S.$500 Million Railway Loan
Lagos–Kano Standard Gauge Railway
Status of Loans Obtained from China Exim As At March 31_2020
Hope dims on N170 billion Abuja-Kaduna rail project
Nigeria: FG Prevails On China to Effect Drawdown of U.S.$500 Million Railway Loan
Methodology
Nigerians living near a major Belt and Road project grew more positive toward China after it was completed
中国公司在尼日利亚举行铁路铺轨仪式
尼日利亚铁路现代化项目
GovernmentConcessional-Loan-PreferentialBuyer-sCredit-Brochure-pdf.pdf
中兴通讯承建尼日利亚铁路现代化集成项目
In Nigeria
Chinese Investment Comes With a Downside
Abuja-Kaduna Rail line
Prospects and Challenges
尼日利亚政府从中国进出口银行获得11亿美元贷款
SAIS-CARI China's Debt Cancellation In Africa Database*
February 2017 Base Prospectus
Amaechi explains sovereignty clause in $500m Chinese Railway loan
Amaechi To PDP: Jonathan Also Got Loan From China
COVID-19: We’re waiting for PTF’s directive to resume operations ― Abuja metro rail mgt
Nigeria Remains China's 3rd Largest Trading Partner in Africa - Envoy, 'FG to take delivery of 11 locos soon'
Urgency of the Apapa rail rehab
Investment in transport infrastructure key to economic growth –Group
Open Sinking
Escrow Accounts to Repay Your Debt
China Tells Nigeria
N420.46m Generated from Abuja-Kaduna Rail
Saved in Escrow Account
Says Amaechi
N420.46m Generated from Abuja-Kaduna Rail
Saved in Escrow Account
Says
Chinese loans and the attendant danger
N190bn Debt: Abuja-Kaduna Train Service And Burden Of China Loan
Open Sinking
Escrow Accounts to Repay Your Debt
China Tells Nigeria
Underutilisation, debts hobble over $4.12b rail rehabilitation project
N190bn Debt: Abuja-Kaduna Train Service And Burden Of China Loan
Actual External Debt Service Payments
January - December 2012
Actual External Debt Service Payments
January - December 2013
Actual External Debt Service Payments
January - December 2014
Actual External Debt Service Payments
January - December 2015
Actual External Debt Service Payments
January to December, 2016
Actual External Debt Service Payments
January to December, 2017
Actual External Debt Service Payments
January to December, 2018
Actual External Debt Service Payments
January to December, 2019
Actual External Debt Service Payments
January to December, 2020
Actual External Debt Service Payments
January to December, 2021
Actual External Debt Service Payments
January to December, 2022
Actual External Debt Service Payments
January to December, 2023
Actual External Debt Service Payments
January - March, 2024
Loans Obtained From China Exim
September 30, 2021
Loans Obtained From China Exim
December 31, 2020
Loans Obtained From China Exim
March 31, 2020, 2015 Annual Report and Statement of Accounts, 2016 Annual Report and Statement of Accounts, 2017 Annual Report and Statement of Accounts, 2018 Annual Report and Statement of Accounts, 2019 Annual Report and Statement of Accounts
External Loans Signed But Yet to be Disbursed
December 31, 2020
Riding the Dragon’s Rails: Unpacking the Impacts of Chinese-Built Railway in Nigeria Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.