Nigeria’s Ministry of Transportation has obtained $1.3bn in funding to complete its northern rail link between Kano, the country’s second largest city after Lagos, and Maradi, the second largest city in Niger.

Local news site Arise reports that the money will fund the completion of the 284km standard-gauge line.

The project broke ground in 2021 and is expected to cost around $2bn. As well as linking Nigeria and Niger, it will run east from Kano to Dutse, the capital of Jigawa State, and interconnect to a $6.7bn link between Kano and Lagos.

Some 85% of the latest loan will be contributed by China Civil Engineering Construction, which is building the line; the remainder will come from the federal government.

China Civil Engineering is building the line on an “EPC + F” basis, which means it will handle the engineering, procurement and construction, as well as the bulk of the financing.

The rolling stock for the project will be provided by Portuguese contractor Mota-Engil, which signed a $916m deal in July.

Jamilu Ja’afaru, an official at the transport ministry, said a recent visit by Tang Zhigang, chair of the China Export and Credit Insurance Corporation board, “bolstered optimism” that it would lay the groundwork for future prosperity between Nigeria and Niger.

He said: “The Kano-Katsina-Jibiya-Maradi rail line is a testament to our shared history and ambition for economic advancement. It will create a lasting legacy of wealth and opportunities for Nigeria and the Niger Republic.”

A number of banks have expressed an interest in providing additional funding for the project. These include the Africa Development Bank, the Africa Export-Import Bank, the Development Bank of Southern Africa, African Finance Bank, Rand Merchant Bank and the China Construction Bank.