China awarded $12bn Nigerian rail contract

China Railway Construction (CRCC) has been chosen to build a railway along Nigeria’s coast at a cost of $12bn. 

The 22-stop, 1,400km railway will link Lagos, Nigeria’s economic capital, with Calabar near the country’s eastern border with Cameroon. 

The project will require Chinese-made equipment worth $4bn. Meng Fengchao, the chairman of CRCC, said: "It’s a mutually beneficial project." 

Around 200,000 jobs will be created during development. Meng said: "Up to 30,000 fixed job posts may also be provided when the railway is operational." 

Mexico recently cancelled a $3.7bn contract three days after awarding it to CRCC. The company is now threatening legal action.