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Friday, October 30, 2026

Africa Markets

Kano–Katsina Rail Nears Opening With Land Claims Unsettled

By · September 14, 2026 · 5 min read
The Casa Rosada government house in Buenos Aires
Currency rules for foreign investors come from the central bank and changed at least ten times between September 2025 and August 2026. (Photo: "Avenida 9 de Julio, Buenos Aires (2)" by Raphael Henrique Figueira, via Wikimedia Commons, CC BY-SA 4.0.)

NIGERIA · INFRASTRUCTURE

Key Facts

  • —What is being built The Kano–Maradi railway, running Kano–Katsina–Jibiya–Maradi with a Dutse branch.
  • —How close it is to opening The Kano–Katsina section is 80% complete, with December 2026 commissioning described by the ministry as sacrosanct.
  • —What is holding it up Land disputes and communities that have not accepted provisions under the Land Use Act.
  • —Who has (and hasn’t) been paid N12.31 billion paid to 16,032 of 19,284 enumerated persons, leaving 3,252 uncompensated.
  • —What the court ordered A Kano State High Court order, first reported on 8 April 2025, halted work on one section pending due process.
  • —Who is paying for it US$1.8 billion arranged with Rand Merchant Bank and the Africa Finance Corporation. Not Chinese.

Eighty percent complete with a December opening, and three thousand people along the route still not paid. Both of those are official figures.

Nigeria’s federal transportation ministry says the Kano to Katsina section of the Kano–Maradi railway is 80% complete and will be commissioned in December. Land disputes along the corridor remain unresolved, and thousands of enumerated claimants remain uncompensated, on a line that is part of Nigeria’s wider push to link its northern states by rail.

Where the Project Stands

As of 28 August 2026 the Federal Ministry of Transportation put the Kano–Katsina section at 80% complete. It described December 2026 commissioning as sacrosanct. The extension to Maradi in Niger Republic is targeted for the end of 2027.

Officials have acknowledged that disputes over land and canal areas are slowing construction. So are communities that have yet to accept provisions relating to the Land Use Act, the law governing compensation for land taken for public projects.

The alignment runs Kano to Katsina to Jibiya to Maradi, with a branch to Dutse. Length is given as 283.75 kilometres for the Nigerian section and 374 kilometres in total. Project cost is commonly cited at US$1.96 billion.

A railway line
Kano–Katsina Rail Nears Opening With Land Claims Unsettled

The Compensation Record

A resettlement audit by Windforce Safeguards Limited, reported in September 2024, found that N20.325 billion had been set aside for asset valuation. Of that, N12.31 billion had been paid to 16,032 of 19,284 enumerated persons, leaving 3,252 uncompensated.

About 32% of those interviewed said they were dissatisfied. Some 78% said they did not know how their assets had been valued, learning the amount only at disbursement.

N12.31 billion was worth roughly US$7.4 million at the rate prevailing when the audit reported in September 2024. The payments were spread across a period in which the naira lost much of its value. Against a project costed at US$1.96 billion, that averages about US$460 for each person compensated.

Rail construction
The alignment runs Kano to Katsina to Jibiya to Maradi.

What the Court Actually Ordered

A restraining order made by Justice Usman Na Abba of the Kano State High Court, first reported on 8 April 2025, halted work on land belonging to residents of Kuyan Ta Inna on the Kano–Daura alignment.

The order was an injunction, not a compensation award. It held that construction must follow due legal process, including consultation with landowners and adequate compensation. It named the federal ministries of works and transport and the project’s compensation consultant.

It was brought by the Kano Property Agent Development Association. Its chairman, Isa Jibrin Isa, said the community was open to dialogue and ready to sign a compensation agreement, but only on the basis of fair valuation. Counsel Usman Baito said proceeding without those steps would breach the constitution.

How the Valuations Were Set

An environmental and social due diligence report was prepared by Environmental Resources Management and EnvAccord for the Africa Finance Corporation and its lenders, dated 2 August 2024. It states that compensation rates for structures, crops and trees are based on government rates with no adjustment for inflation.

That is the mechanism behind the dissatisfaction the audit recorded. A rate set years before a payment is made, in a currency that has depreciated sharply, does not buy what it was calculated to buy.

The same report projects the loss of 12,695 residential houses and 2,064 complementary assets, and 19,238 economically displaced persons. That count differs slightly from the audit’s 19,284 enumerated persons because the two documents measure different things.

Government offices in Abuja
The financing closed in June 2026 with Rand Merchant Bank as coordinator.

Who Is Building and Paying for It

The engineering contractor is Mota-Engil Africa. The US$1.8 billion financing package closed in June 2026 with Rand Merchant Bank as global coordinator and initial mandated lead arranger, and the Africa Finance Corporation as a key partner. It also includes an African Development Bank loan of US$350 million approved in October 2024, and about US$250 million from the Development Bank of Southern Africa.

There is no Chinese financing or Chinese contractor on this line. The confusion arises from the separate Kano–Kaduna section of the Nigerian Railway Modernization Project, built by CCECC with China Eximbank credits.

What to Watch

The December commissioning date is the first test. A section opened while landowners along it remain unpaid invites litigation of exactly the kind that halted work in 2025.

The second is whether the remaining 3,252 claims are settled before the Maradi extension begins, or whether the same valuation method is carried into it. For the communities along the route, that answer will matter more than the opening date itself.

Frequently Asked Questions

How far along is the railway?

The Kano–Katsina section is 80% complete, with commissioning targeted for December 2026 and the Maradi extension for end-2027.

How many people are still uncompensated?

3,252 of 19,284 enumerated persons, according to a September 2024 resettlement audit.

What did the 2025 court order do?

It restrained construction on land at Kuyan Ta Inna pending due process, consultation and adequate compensation. It did not award a sum.

How were compensation rates set?

On government rates with no adjustment for inflation, according to the lenders’ environmental and social due diligence report.

Who is financing it?

A US$1.8 billion package arranged with Rand Merchant Bank and the Africa Finance Corporation, plus US$350 million from the African Development Bank. There is no Chinese financing on this line.

Sources: ThisDay, Leadership, Tribune Online, BusinessDay, African Development Bank, Environmental Resources Management and EnvAccord.

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