China Railway coy signs $6.68 billion deal with Nigeria

China Railway coy signs $6.68 billion deal with Nigeria

The railway unit of China’s state-owned construction company said it has signed a $6.68 billion railway project with Nigeria.

The company said in an official statement that the:

“China Civil Engineering Group Co., Ltd. has diplomatic relations with Nigeria. The Ministry signed a supplementary implementation agreement No. 4 between Lagos and Kano Railway (Ibadan to Kaduna The section contains feeders from Oshobo to Adu-Ekiti, which is the No. 1 railroad modernization project in Nigeria 4 tenders.”

“The main line of the project (Ibadan-Kaduna segment) is 616.14 km in length, with a new double-track Railway; The spur section is 80.88 km long and a new single-track railway is built. Line design speed 150 km/h, project duration is 48 months.”

“The contract amount is about 6.681 billion U.S. dollars, equivalent to RMB 42.328 billion, accounting for approximately 2017 operating income under the PRC Accounting Standards 6.22% of the total.”

This is one of the few deals China and some of its state enterprises will be signing with Africa’s largest economy as the country aims to close its infrastructure gap.

A few weeks ago, Nigeria signed a Yuan currency swap deal with China worth about $2 billion.