Finance Ministry, Bank Secure $1.8bn Financing for Kano-Maradi Rail Project

The Ministry of Finance has partnered with Rand Merchant Bank (RMB) to secure a $1.8 billion financing package for the development of the Kano-Maradi railway project, which expected to deepen regional trade and economic integration between Nigeria and the Niger Republic.
The bank disclosed that it acted as Global Coordinator and Initial Mandated Lead Arranger for the financing of the 374-kilometre rail line, which will connect Kano in northern Nigeria to Maradi in neighbouring Niger Republic.
According to RMB, the transaction involved mobilising funding from multiple sources, including development finance institutions and local currency financiers, in support of the Ministry of Finance’s efforts to unlock regional trade opportunities and improve transport infrastructure.
Executive Director and Head of Investment Banking at RMB Nigeria, Chidi Iwuchukwu, described the deal as a transformative transaction that would strengthen trade and development across the region.
“This pivotal transaction connects regional entities, supporting trade and development in the region. The RMB team demonstrated its skill in cross-border African transactions, arranging transport assets under EPC+f arrangements for sovereign borrowers,” Iwuchukwu said.
The Kano-Maradi railway project is expected to boost economic growth, enhance regional integration, diversify transportation options and improve connectivity between Nigeria and Niger Republic. It is also projected to stimulate cross-border commerce while contributing to Nigeria’s long-term emissions reduction objectives.
RMB said the transaction was executed through a collaborative effort involving its Syndications, Structured Solutions and Infrastructure Sector Solutions teams, working closely with the Ministry of Finance and other financing partners.
The bank also highlighted its collaboration with the Africa Finance Corporation (AFC), which served as a key stakeholder and financing partner throughout the three-year transaction process.
Senior Dealmaker and Head of Infrastructure Finance at RMB Nigeria, Enyinna Anumudu, noted that Mota Engil Africa, the engineering, procurement and construction contractor on the project, remained a strategic partner in delivering infrastructure projects across the continent.
“Mota Engil Africa continues to serve as an important partner to RMB Infrastructure Sector Solutions as the leading EPC contractor on the African continent. RMB has supported Mota Engil across its operations in Africa, as well as on projects where Mota Engil is acting as the EPC and financing contractor for sovereigns such as Nigeria as is the case with this project,” Anumudu said.
RMB explained that the financing arrangement was particularly complex due to the number of institutions involved and the extensive due diligence, Know Your Customer (KYC) and onboarding requirements demanded by participating lenders.
The bank said it deployed significant resources to coordinate stakeholders and manage the execution process, ultimately achieving financial close on one of the region’s most significant transport infrastructure projects.
Iwuchukwu added that the successful completion of the financing underscores RMB’s commitment to supporting strategic infrastructure development and cross-border trade across Africa.
“RMB is proud to have acted as the Global Coordinator and Initial Mandated Lead Arranger for this landmark transaction. By making this financing available for critical infrastructure and fostering successful collaboration among all parties, we have facilitated transformative, cross-regional trade relationships,” he stated.