China, Nigeria Seal $5.57bn Loan Agreements under Eight Years

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….$3.313bn disbursed, 3.121 currently outstanding
TI, CISLAC seek end wastage by MDAs

Gboyega Akinsanmi

Abuja (Sundiata Post) – Amid fiscal pressure that threatened its capacity fund capital projects, federal government sealed $5.575 billion loan agreements with the Export–Import Bank of China between December 10, 2010 and May 29, 2018, a Debt Management Office (DMO) document has revealed.

With Nigeria’s rising exposure external debt valued at $27.676 billion as at March 2020, Transparency International (TI) has decried federal government borrowing spree despite huge resources wasted by ministries, departments and agencies (MDAs).

Details about loan agreements were contained in the DMO’s status of loans obtained from China EXIM between December 10, 2010 and May 29, 2018. The status x-rayed Nigeria’s debt exposure People’s Republic of China as at March 31, 2020

Of total $5.575 loan agreements wrapped up with this timeframe, the document showed that China EXIM bank had already disbursed $3.313 billion while the federal government was left with an outstanding loan of $3.121 billion.

Since December 20, 2010 loan agreement was first closed, DMO’S document revealed that the federal government had paid $192.21 million as part of the principal and $269.68 million as interest on different loans obtained as at March 31, 2020.

document showed that the facilities were sealed with the following terms of agreement: 2.5% interest rate; seven-year period of grace and 20-year period of maturity.

Under administration of President Muhammadu Buhari, for instance, the DMO’s document revealed, the federal government applied for $2.591 billion between August 26, 2016 and May 29, 2018, a period of one year and nine months. (ThisDay)