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Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria - Politics - Nairaland

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Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by dipoolowoo: 6:28am On Jun 22, 2020
By Dipo Olowookere

Nigeria has said there will never be a situation where China will have to take possession of the projects financed with its loans.

The Debt Management Office (DMO), while reacting to reports that China may take over projects financed with its loans secured by Nigeria, assured that the federal government has made adequate plans for the repayment of the debt.

According to the DMO, as at March 31, 2020, the total borrowing from China stood at $3.121 billion at an interest rate of 2.50 percent per annum, with a 20-year maturity and a 7-year moratorium.

The agency said the low interest rate reduces the interest cost to government, while the long tenor enables the repayment of the principal sum of the concessional 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,” the debt office said.

Speaking further, the agency noted that there won’t be a need for China to take ownership of the projects because Nigeria will not default in clearing the debts.

“Nigeria explicitly provides for debt service on its external and domestic debt in its annual budgets.

“In effect, this means that debt service is recognised and payment is planned for.

“In addition, a number of the projects being (and to be) financed by the loans are either revenue generating or have the potential to generate revenue,” the DMO said.

It listed the 11 projects financed with the $3.121 billion Chinese loans as the Nigerian Railway Modernization Project (Idu-Kaduna section), Abuja Light Rail Project, Nigerian Four Airport Terminals Expansion Project (Abuja, Kano, Lagos and Port Harcourt), Nigerian Railway Modernization Project (Lagos-Ibadan section) and Rehabilitation and Upgrading of Abuja – Keffi- Makurdi Road Project.

The DMO stressed that the impact of these loans was not only evident but visible, stating that for instance, the Idu–Kaduna rail line has become a major source of transportation between Abuja and Kaduna.

It further said 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.

“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 (SMEs).

“It is widely accepted that investment in infrastructure is one of the most effective tools for countries to achieve economic growth and development. Using loans from China to finance infrastructure is thus in alignment with this position,” the statement issued by the agency last week said.

The debt office also said the loans were obtained from China after a rigorous process. It said this involved the Federal Ministry of Finance, Budget and National Planning, the MDAs under whose portfolio a proposed loan falls and also with the DMO.

“Thereafter, the approval of the Federal Executive Council (FEC) is sought. It is only after the approval by FEC that (the President) requests for the approval of the National Assembly (NASS) as required by Section 41 of the Fiscal responsibility Act, 2007.

“More importantly, it is only after the approval of NASS that the loans are taken and Nigeria begins to drawdown on the loans.

“In summary, borrowing is a joint activity between the executive (FEC) and the legislative (NASS) arms of government,” it explained.

It further stated that, “The loan agreements are reviewed by legal officers of the Federal Ministry of Justice and the legal opinion of the Attorney General of the Federation and Minister of Justice is obtained before any external loan agreement is signed.”

https://businesspost.ng/economy/loan-default-china-wont-take-possession-of-projects-in-nigeria-dmo/

6 Likes 1 Share

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by aolawale025: 6:30am On Jun 22, 2020
Let's see what happens when a scheduled repayment is missed

24 Likes

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by Goldencheese(m): 6:36am On Jun 22, 2020
These loans will only make sense if APC and Buhari's government spend it judiciously as they should on the projects they were meant for. We are tired of audio projects! Not anymore.

5 Likes

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by helinues: 6:37am On Jun 22, 2020
Let's hear the confirmation from China first

3 Likes 1 Share

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by SmartProf(m): 6:37am On Jun 22, 2020
The Chinese people are very calculative and business minded. Don't be decieved by any act of kindness in the name of bilateral relations, cos they know what they stand to gain before giving Nigeria all these loans we keep requesting. Remember there is no free lunch. When you don't repay those loans as expected, u will see their other side. Are the Chinese not already taking charge of sensitive government projects as we speak?

48 Likes 2 Shares

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by johnmartus(m): 6:45am On Jun 22, 2020
I dont really like the way government monitor most of their projects some government agencies are just cashing out from the project.

1 Like

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by FlordFlorez(m): 7:02am On Jun 22, 2020
Government of burrow burrow. 20years maturity period is not bad anyway coupled with the very low interest rate. The problem lies whether the burrowed money will be used exclusively for what they'r meant for and not looted as usual. Again, i didn't see how SE region will benefits from this loan. This's one of the things that make some people agitate for separation. It's highly uncalled for and unfair. Restructuring is the only key, it's non-negotiable.

29 Likes 1 Share

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by Bluethong1(f): 7:22am On Jun 22, 2020
I don't believe in anything, sell the country and give us our shares.


There is hunger everywhere but we keep borrowing and we ain't seen any changes.


This is unfair oooo

12 Likes 1 Share

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by Anneka101(f): 7:22am On Jun 22, 2020
The Chinese are wiser. They ain't fool that have free money to give out to us as loan.

We as a country are yet to developing ourselves, the Chinese already taken over sensitive construction.


Only the wise would know this.

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10 Likes 1 Share

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by MANNABBQGRILLS: 7:23am On Jun 22, 2020
Again, Rumours are spread by fools and believe by idiots.

5 Likes 3 Shares

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by IMASTEX: 7:23am On Jun 22, 2020
Coming from a government that has always be very consistent with the truth, we would believe it grin grin grin grin

3 Likes

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by DenreleDave(m): 7:23am On Jun 22, 2020
We hope so...

We & Us at MANNABBQGRILLS believes that Rumours are spread by fools and believe by idiots


Mind you, We don't argue with swines gringringringrin

8 Likes 2 Shares

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by Badonasty(m): 7:24am On Jun 22, 2020
Lol...you think say we mumu like you abi you think say na all of us be zombie

I swear this news don make me vex this morning sha...go and ask Zimbabwe go and ask Zambia...this people go just dey follow us talk like say na babies dem Dey follow talk

4 Likes

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by fishjam: 7:24am On Jun 22, 2020
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1 Like

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by crossfm: 7:24am On Jun 22, 2020
Yam eater's association of Nigeria. Federal republic of borrowing.
So this is the reasons why they kept borrowing.
Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by ForeThinker: 7:25am On Jun 22, 2020
Be patient when things are not going right. Accept that what is yours will come to you in the right way at just the right moment.

2 Likes

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by Openbusiness: 7:25am On Jun 22, 2020
Of course they won't do that, because they will just take control of Aso Rock straight. Buhari don sell this country finish on Olx grin

2 Likes

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by Corporate2020: 7:25am On Jun 22, 2020
Only IPOB miscreants belief China will come and take over our National Assembly.

3 Likes 1 Share

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by Nobody: 7:25am On Jun 22, 2020
China does not do debt forgiveness lol

1 Like

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by Dshocker(m): 7:26am On Jun 22, 2020
I think they should keep borrowing,very useless set of people that has ran the affairs of this nation from 1999 till date

1 Like

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by zedegit: 7:26am On Jun 22, 2020
cheesy They are still borrowing. Later they will plead for debt cancellation. Who does that

1 Like

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by onegb(m): 7:26am On Jun 22, 2020
Let see how it goes
Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by Born2conquer: 7:27am On Jun 22, 2020
Na so them dey talk
Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by JosephXavier(m): 7:27am On Jun 22, 2020
We are Nigerians and we are used to depending on other countries for everything.

We depend on US for drugs, for treatment, for good water, for business, to refine our oil and sell back to us, for food and aid and even debt.

After borrowing, the next President that comes will beg them to cancel our debts.

What a way to defraud the West? But Chinese are not like that, those people no dey joke with their money.
Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by rawtouch: 7:27am On Jun 22, 2020
sad


it's like una will beat them ontop their money if& when there is a default in payment
Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by SouthNigerian: 7:27am On Jun 22, 2020
What a disgraceful people in government sad

I'm pretty sure the $3.121 billion loan given to Nigeria by China was made in Nigeria.

Combine all Chinese companies and activities in Nigeria... They've made more than $3.121 billion loan given to us in our own country.

Dumb leaders are steering our affairs.

2 Likes

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by valdes00(m): 7:27am On Jun 22, 2020
As this China loan dey go.. Hope no be we the citizens go later pay for am... Person go sleep one day, he go jus hear knock. As u open, u go see chinese for ur door - - Halo man, chin chu haa chin chon, with hoe n cutlass for hand.. Jus pack person go dey farm....

7 Likes

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by MANNABBQGRILLS: 7:28am On Jun 22, 2020
DenreleDave:
We hope so...

We & Us at MANNABBQGRILLS believes that Rumours are spread by fools and believe by idiots


Mind you, We don't argue with swines gringringringrin
Correct somebori....
Loud am,
Let dem hear.
Make e dey ring for dem head like pangolo sound cheesy
How dey go dey go?

Our paddy to sure........ wink

2 Likes 4 Shares

Re: Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria by shadeyinka(m): 7:28am On Jun 22, 2020
In other words, part of the conditionalities Nigeria signed with China is that on loan default, China could take the asset of Nigeria.

BUT

DMO is saying this will not happen as Nigeria will be faithful to pay up the debt.

....and yet some people are currently borrowing monies at reckless abandon whose cumulative is not feasible to pay until China takes over Nigeria Port Authority and NNPC.

Wicked Government!

2 Likes

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