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Nigerian rail projects drive home China’s belt and road commitment to African infrastructure development
- Senior diplomat Wu Peng’s support of projects in Nigeria has reinforced China’s commitment to helping African growth
- But experts say a switch of banks financing a Nigerian rail project points to Beijing’s shift in focus from concessional to commercial lending
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Building railways and bridges in Africa are a key focus for Beijing, after senior diplomat for African affairs Wu Peng announced that China will support infrastructure development in Nigeria, while on a trip to the West African nation last month.
It is a sign that China is still committed to enhancing ties and financially backing growth in African nations. But observers have also said that a change in banks financing a major rail project in Nigeria points to China’s desire to commercialise its overseas lending.
Wu, the Chinese foreign ministry’s director general of African affairs, previously announced the signing of a finance agreement for the Kaduna-Kano railway, a landmark project in the Belt and Road Initiative in Nigeria.
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It came after a promise in October by Chinese President Xi Jinping to finance and complete the Abuja-Kano and Port Harcourt-Maiduguri railway projects during a meeting with Nigerian Vice-President Kashim Shettima on the sidelines of the third Belt and Road Forum in Beijing.
China had agreed to provide 85 per cent financing for the construction of the two railway projects, while Nigeria was to pay the remaining 15 per cent. This money has since been earmarked by Nigeria for the project, according to Shettima’s office.
The funding was originally meant to come from state-owned policy bank China Eximbank, but it pulled the plug back in 2020, citing the Covid-19 pandemic and concerns about Nigeria’s ability to repay the loan.
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