Last week, China signed its largest single overseas contract project – a $12 billion deal to build a 22-stop railway along the coast of Africa’s most populous country Nigeria. The facility will span 1,402 kilometres in length and link Nigeria’s economic capital, Lagos, in the west with tourist destination, Calabar, in the southeast.
The news of the deal was received amidst praises and high expectations that the project, once completed, will enhance economic development. At a time when the vast majority of news from the nation has centred around oil price instability and austerity measures, Nigerians are excited about this development which will ease transportation across both major cities.
Beyond the hype, however, there are three clear reasons that explain why this deal makes economic sense;
It is a significant boost to Nigeria’s infrastructure profile. In the wake of the oil crisis, cries have been louder than ever on the need for a healthy infrastructure base that can improve the business climate in the country and attract more foreign businesses to it, thus diversifying the economy. Before now, a number of global consultancies have decried the infrastructure gaps particularly in power and transportation. Lagos city, itself, […]