Nigeria’s Chinese Debt Set To Rise, As Buhari Requests New Loans From China, Others

The Minister of Transportation, Mu’azu Sambo, has revealed that the Federal Government is considering obtaining Chinese and Portuguese loans.

Sambo told the Joint National Assembly Committee on Land and Marine Transport, on Thursday, that President Muhammadu Buhari-led administration has begun talks with financial institutions from both countries, as well as Turkey. 

This will further increase Nigeria’s Chinese debt, which is $3.402 billion as of March 31, 2022, according to the Debt Management Office (DMO). 

The Joint Committee chaired by Senator Danjuma Goje, heard that the undisclosed amount will be disbursed to develop the country’s railway infrastructure. 

Speaking to the lawmakers, Sambo explained, “Currently, the implementation of the Kaduna-Kano, Port Harcourt to Maiduguri and Kano – Maradi Segments of the Railway Modernization is ongoing with the Federal Government counterpart funding in the 2022 appropriation. 

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“The Ministry hopes that the Federal Ministry of Finance concludes negotiation of the loans with infrastructure development finance institutions of Chinese, Portuguese and Turkish origin to implement the projects. 

“To ensure finalising and signing of the loan agreements, evidence of source of funding of the balance of the advance payment and other aspects of work to be financed directly by the Federal Government has to be made available to these financial institutions through adequate budgetary provisions in the year 2023 budget and subsequent budgets.”