The Nigerian Federal Ministry of Transportation has extended Mota-Engil Nigeria's contract for construction of the Kano–Maradi railway line by approximately US$655 million.
Mota-Engil announced the contract extension on 25 August 2026. In the same week, the Federal Government of Nigeria reaffirmed its commitment to completing and commissioning the 284km Kano–Daura–Katsina section of the Kano–Maradi Railway Development Project by December 2026.
The commitment followed a joint inspection of the project by officials from the Federal Ministry of Transportation, Federal Ministry of Finance and project financiers between 25 and 27 August 2026.
The inspection found that physical completion of the Kano-Katsina section had exceeded 75%. Officials also undertook a test run over completed track from Kazaure to Katsina.
Following the inspection, the Permanent Secretary of the Federal Ministry of Transportation, Engr. Funso Adebiyi, represented by the Director of Rail Transport Services, Engr. Habiba Buhari, said the project remained on course for commissioning in December 2026.
Buhari said the rainy season had slowed construction activity, but materials required for track laying had already been stockpiled at the project camp.
Outstanding challenges include security concerns, vandalism of construction materials, access to land in some urban areas, illegal laterite mining along the Kano-Dutse corridor and seasonal reductions in construction activity.
The ministry is continuing engagement with affected communities and other stakeholders to resolve land-access issues and facilitate access for contractors.
Rolling-stock procurement remains a key requirement ahead of commissioning. Buhari said efforts were under way to ensure that sufficient trains were available for the December commissioning, even if the full fleet had not arrived by then.
Siya Biniza, representing the project financiers, said the investment in the railway was justified and described rail as strategic infrastructure with economic potential for Nigeria.
Federal Ministry of Finance representative Alhaji Muhammadu Kamal, Director in the Office of the Permanent Secretary, confirmed that the Federal Government had released its 15% counterpart contribution.
He said the project is being financed through a combination of loan facilities and counterpart funding, with the Federal Government providing 15% and the financing facility covering the remaining 85%.
Mota-Engil Nigeria also reaffirmed its commitment to completing the Kano-Katsina section by December 2026.
