China offers Nigeria $1.1B loan for rail, airports

Sep 12, 2012, 10:16 AM EDT

ABUJA, Nigeria (AP) — Nigerian officials say the Chinese government has offered the West African nation a $1.1 billion loan to build airport terminals and a light rail line in its capital city.

A statement issued Wednesday by Nigeria's Finance Ministry said the loans would be offered through China's Exim Bank. The ministry said the airport terminals, to be built in Abuja, Enugu, Kano and Port Harcourt, will cost about $500 million.

The light rail project for Abuja, to help those living in the capital's outskirts come into work, is estimated to cost $500 million. The ministry said a separate $100 million project would go toward improving Internet capability in the country.

China has increasingly partnered with Nigeria for big road and rail projects. However, some deals have fallen apart amid corruption allegations.