Connect with us

News

Nigeria Owes China $3 Billion, Approximately N1.2 Trillion As Of 2020 – World Bank


The World Bank has revealed that the total amount of money borrowed by the Nigerian Government from China rose to $3.121 billion (N1,126.68 trillion at USD/N361) as of March last year.

Advertisement

Nigeria Owes China $3 Billion, Approximately N1.2 Trillion As Of 2020 – World Bank

According to The Sun, the total amount represents only 3.94 percent of Nigeria’s total public debt of $79.21 billion as of September 2021.

Similarly, in terms of external .s of funds, loans from China accounted for 11.28 percent of the External Debt Stock of USD27.67 billion as of the same date.

Advertisement

A document from World Bank says that the total borrowing from China of USD3.121 billion as of March 31, 2020, are concessional loans with interest rates of 2.50 percent per annum with a tenor of 20 years and grace period (moratorium) of seven years.

The document said, “These terms are compliant with the provisions of Section 41 (1a) of the Fiscal Responsibility Act, 2007. In addition, the low interest rate reduces the interest cost to government while the long tenor enables the repayment of the principal sum of the loans over many years. These two benefits, make the provisions for debt service in the annual budget lower than they would otherwise have been if the loans were on commercial terms”

Advertisement

“The $3.121 billion loans, the document, explained, are project-tied loans. The projects, (eleven – 11 in number as at March 31, 2020), include: Nigerian Railway Modernisation Project (Idu-Kaduna section), Abuja Light Rail Project, Nigerian Four Airport Terminals Expansion Project (Abuja, Kano, Lagos and Port Harcourt), Nigerian Railway Modernisation Project (Lagos-Ibadan section) and Rehabilitation and Upgrading of Abuja – Keffi- Makurdi Road Project.

“The impact of these loans is not only evident but visible. For instance, the Idu – Kaduna Rail Line has become a major . of transportation between Abuja and Kaduna. Also, the new International Airport in Abuja, has improved air transportation for the populace, while the Lagos – Ibadan Rail line when completed, will ease traffic on the busy Lagos -Ibadan Expressway.

Advertisement

“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.”

Despite concerns about the rising dept among Nigerians, the Minister of Finance, Zainab Ahmed has repeatedly assured the nation that the country’s debt is still sustainable.

Advertisement

“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.

KanyiDaily recalls that President Muhammadu Buhari had recently sought the approval of the National Assembly to borrow the sum of $4,054,476,863 billion and €710 million.

Advertisement

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src = “https://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.5”;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));

Advertisement

Follow Fashion Style TV on Youtube


Click here for Latest Ankara Styles >> Read More

Entertainment54 seconds ago

‘Why I Will Never Regret The Unrequited Love I Gave’- Tonto Dikeh – Fashionstyle Nigeria

Entertainment32 mins ago

James Brown narrates how he fell in love with ‘governor’ (Video) – Fashionstyle Nigeria

Entertainment56 mins ago

Game of Thrones actor hospitalised with Covid-19 – Fashionstyle Nigeria

Entertainment1 hour ago

Ed Sheeran ‘auditions’ to be in British Money Heist – Fashionstyle Nigeria

Entertainment1 hour ago

Africa Agility in Partnership with Impact Lagos and Eko Innovation Centre is excited to announce ‘Girls In Tech Bootcamp’ – Fashionstyle Nigeria

Ankara Styles2 hours ago

AFRICAN DRESSES STYLES || ANKARA LONG GOWNS STYLES LATEST AND GORGEOUS AFRICAN WOMAN GOWNS STYLES

Entertainment2 hours ago

I thought he spelt sister wrongly – Fashionstyle Nigeria

Ankara Styles2 hours ago

2022 Ankara Skirt And Blouse Styles Latest African Dresses Magnificent Ankara Skirt And Blouse

Entertainment2 hours ago

Man narrates how he dealt with children who wanted to share his drink – Fashionstyle Nigeria

Entertainment2 hours ago

Akpos Is Back And This Time He’s Spending “Christmas In Miami”

Fashion2 hours ago

26+ Awesome Fall Nails Trend 2021 to Try Now

Entertainment3 hours ago

Sisi Yemmie is Having a Baby! Watch Her New Vlogmas for the Cute Announcement – Fashionstyle Nigeria

Entertainment3 hours ago

Zlatan Ibile dragged to filth over comment to little hawkers (Video) – Fashionstyle Nigeria

Entertainment3 hours ago

I’ll never regret loving you, even though you didn’t reciprocate – Fashionstyle Nigeria

Entertainment3 hours ago

Whitemoney Sets To Release New Song ‘Selense’ – Fashionstyle Nigeria

X