It’s no longer story that the Nigerian government borrows at every slightest chance, Nigerian government even borrow to pay loan!, yes it’s that bad. However, the World Bank has released a document revealing the total amount of money the Nigerian Government owes the Chinese government.
As of March 2020, the amount rose to $3.121 billion (N1,126.68 trillion at USD/N361). This number represents only 3.94 per cent of Nigeria’s total public debt of $79.21 billion as of September 2021.
According to the document, the total borrowing is concessional loans with interest rates of 2.50 percent per annum with a tenor of 20 years and a moratorium of seven years.
Now, every Nigerian owes China over N15,000
The $3.121 billion loans are tied to 11 projects per March 31, 2020, the document explained. The projects include the Nigerian Railway Modernisation Project (Idu-Kaduna section), Abuja Light Rail Project, Nigerian Four Airport Terminals Expansion Project (Abuja, Kano, Lagos, and Port Harcourt), Rehabilitation and Upgrading of Abuja–Keffi–Makurdi Road Project and Nigerian Railway Modernisation Project (Lagos-Ibadan section).
“The projects also have the added benefits of job creation, not only by themselves but through direct and indirect service providers, a number of which are Small and Medium Enterprises,” the document said.
Although these loans are project-tied, many Nigerians are concerned with the current debt and rejected President Muhammadu Buhari’s proposal for a new loan. Minister of Finance Budget and National Planning, Zainab Ahmed assured the nation that the country’s debt is still manageable.
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“Nigeria’s debt is still very much within sustainable limits. “We need to roll out infrastructure now, and grow the economy now— not later,” she said.
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