By Maryam Shuaibu
The Kano-Maradi Railway Project has secured a major financial boost after Rand Merchant Bank (RMB) announced the successful arrangement of a $1.8 billion funding package for the cross-border rail infrastructure linking Nigeria and the Niger Republic.
RMB said it acted as the Global Coordinator and initial Mandated Lead Arranger for the financing provided to Nigeria’s Ministry of Finance for the development, construction and commissioning of the 374-kilometre railway line.
According to the bank, the project involved mobilising funds from multiple sources, including development finance institutions and local currency financiers.
The Kano-Maradi railway is one of West Africa’s most significant transport infrastructure projects. It is expected to strengthen trade, improve regional integration and enhance connectivity between Nigeria and neighbouring Niger Republic.
Speaking on the transaction, the Executive Director and Head of Investment Banking at RMB Nigeria, Chidi Iwuchukwu, described the deal as a major milestone for regional development.
“This pivotal transaction connects regional economies and supports trade and development across the region,” he said.
Mr Iwuchukwu noted that the project highlights RMB’s experience in structuring complex cross-border infrastructure transactions across Africa.
He added that the bank’s syndications, structured solutions and infrastructure finance teams worked together to deliver a comprehensive funding package for the Nigerian government.
Boost for trade and regional integration
The Kano-Maradi railway project is expected to facilitate the movement of goods and people while reducing transportation costs across the region.
Analysts say the rail corridor could significantly improve trade flows between Nigeria and Niger Republic, creating new economic opportunities for businesses and communities along the route.
The project is also expected to support Nigeria’s long-term environmental goals by promoting rail transportation as a cleaner alternative to road transport.
According to RMB, the railway will contribute to broader efforts aimed at reducing emissions while improving transport efficiency.
The Senior Dealmaker and Head of Infrastructure Finance at RMB Nigeria, Enyinna Anumudu, said the bank worked closely with Mota-Engil Africa, the engineering, procurement and construction contractor handling the project.
He described Mota-Engil as a key partner in the delivery of major infrastructure projects across the continent.
Mr Anumudu also noted that RMB collaborated with the Africa Finance Corporation throughout the financing process.
According to him, the transaction required extensive coordination among multiple institutions and stakeholders over a three-year period.
The bank said it deployed significant resources to manage due diligence processes, regulatory requirements and lender onboarding procedures necessary to complete the deal.
Mr Iwuchukwu said RMB remains proud of its role in facilitating the financing package, describing the transaction as a catalyst for regional trade and economic transformation.
The Kano-Maradi railway project is expected to play a strategic role in strengthening economic ties between Nigeria and Niger Republic while supporting broader regional development goals.