The remaining 15% will be covered by the Nigerian government alongside institutions like the Africa Export-Import Bank and African Development Bank, Reuters reports.
Nigeria has secured $1.3 billion in funding to complete a railway project connecting Kano, the largest city in the north, to Maradi in neighbouring Niger.
The transport ministry in a statement on Wednesday said funding will come from a consortium led by the China Civil Engineering Construction Company (CCECC), which will contribute 85% of the total.
The remaining 15% will be covered by the Nigerian government alongside institutions like the Africa Export-Import Bank and African Development Bank, Reuters reports.
"The securing of $1.3 billion signifies a monumental step forward in the completion of this critical infrastructure," transport ministry spokesperson Jamilu Ja'afaru said.
The railway line will build on existing economic and social ties to boost trade and cultural cooperation between the two countries.
In July, Portugal's largest builder Mota-Engil signed an 840 million-euro ($919 million) contract to supply and finance railway rolling stock for the project.
The Nigerian government has sought to rebuild the impoverished north of the country, parts of which have been ravaged for the past decade by Islamist insurgents.
The project is part of a government plan to build rail networks across Nigeria to address the poor transport infrastructure that has stymied economic growth for decades.