Link to article: https://www.reuters.com/business/autos-transportation/china-development-bank-releases-255-mln-nigeria-rail-project-2025-01-08/
A loan of $254.76 million has been given to Nigeria for a railroad project that aims to connect the two cities of Kano and Kaduna. China’s foreign minister is expected to meet with the Nigerian president and government officials tomorrow as part of his annual tour of Africa for the New Year. The whole railroad project is projected to cost $973 million with its construction slowed due to funding delays. China Development Bank stated that the loan would give financial support for an unproblematic progress of the railway that is to be 126 miles. The railway will connect Kano (an important northern city in Nigeria) and the country’s capital, Abuja. This will give residents a safe and effective way of transportation in the country. It will simplify the movement of goods and people in the area which is often faced with armed gangs. This project is being built by China Civil Engineering Construction Corporation and is apart of China’s Belt and Road Initiative.
Of course, China is not conducting this project in Nigeria, with a good amount of resources and finance, just out of love for the country. Rather, this is China’s use of soft power in the region through their aid and therefore subtle Chinese influence. Lesser developed countries like Nigeria tend to latch onto more developed countries as a cause of the effects of post-colonialism dependency. Nigeria will happily take this support to advance their country. China’s involvement in Nigeria is reflected in its elevated efforts to deploy their influence in parts of sub-saharan Africa. This project will likely improve the safety of northern Nigeria and help with their movement towards development.
The China Development Bank uses this project as a statement of their place as a major global financer for development projects also while China uses it as an example of their support for the region. This railway project is strengthening ties between China and Nigeria benefiting both their relations and economies. Nigeria will continue their endeavors towards improving and modernizing their infrastructure. Businesses and companies in Nigeria can view this as an opportunity for growth further helping Nigeria’s economy. There are potential risks though that Nigeria and China may be worried about like Nigeria’s failure to pay off the loans. Using a liberalist perspective, this project can be seen as an example of cooperation and interdependence that mutually benefits both sides. Because of this collaboration, strife towards long term peace seems more possible with the predicted stability.