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The role of China in Nigeria's debt problem has led to a confrontation between the Executive and the House of Representatives. The Federal Government had been questioned on why China remains its major source of loan as the fear of China, thanks to it's antecedent in underdeveloped and developing countries, spreads across Nigeria.

The government has also been criticised over the contract terms of the agreement it had with China in respect of the project finance, which includes sovereign guarantee. The contract clause has led to many believing FG has transferred Nigeria's sovereignty to the Asian country just to obtain financial support from China - but this is a misconception of what sovereign guarantee actually mean.

What You Should Know About Nigeria/China Debt

Reduces Nigeria's Debt Service Provision: Compared to other sources of loan, China provides - through Beijing-based Export-Import Bank of China - Nigeria with soft loan that are project tied. The loan comes with low interest rate of 2.5 percent with a tenor of 20 years, including grace period of seven years. This reduces the Debt Service provision in the Annual Budget lower than it would have been.

The Infrastructures Built From Chinese Loans: [/b]The Chinese loans are project tied. It is spent on eleven projects; 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).

Part of the project includes Rehabilitation and Upgrading of Abuja-Keffi- Makurdi Road Project. These projects will play a role in the repayment of the Chinese debt, as they are revenue generating projects or have the potential to generate revenue for the country.

The Debt Management Office (DMO), while reacting to the controversy trailing the Chinese loan, had stated that, “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”.

[b]China Is Not Nigeria's Main Source Of Loan

China, according to DMO, accounts for 3.94% of Nigeria’s total public debt of $79.303 billion, as China's loan to Nigeria stands at $3.121 billion. This represents 11.28 percent of Nigeria’s external debt profile of $27.67 billion at the time.

Meanwhile, other loan sources on Nigeria's external debt list show that the World Bank Group tops the list of Nigeria's external debt with $10.1 billion, Eurobonds account for a total $10.86 billion or 39% of external debt.

Also, as of February 2020, Nigeria has an African Development Bank (AfDB) outstanding loan of $2.1 billion - Amidst the COVID-19 pandemic, Nigeria got about €288.5 million in addition. Nigeria got $3.4 billion IMF COVID-19 relief loan in April. Meanwhile, three months ago, Nigeria was relieved of the €22.4 million (N8.9 billion) debt it owed Germany.

Why China Became Nigeria's Go-to-source For Loan

While China is not Nigeria's main source for loan, it has become the most recent source for quick or project tied loan. Aside from China providing Nigeria soft loan of low interest rate, the Asian country was the only.... https://allnews.ng/news/breakdown-of-china-s-role-in-nigeria-s-debt-problem-and-misunderstanding-of-sovereign-clause

Alarinka1:
The role of China in Nigeria's debt problem has led to a confrontation between the Executive and the House of Representatives. The Federal Government had been questioned on why China remains its major source of loan as the fear of China, thanks to it's antecedent in underdeveloped and developing countries, spreads across Nigeria.

The government has also been criticised over the contract terms of the agreement it had with China in respect of the project finance, which includes sovereign guarantee. The contract clause has led to many believing FG has transferred Nigeria's sovereignty to the Asian country just to obtain financial support from China - but this is a misconception of what sovereign guarantee actually mean.

What You Should Know About Nigeria/China Debt

Reduces Nigeria's Debt Service Provision: Compared to other sources of loan, China provides - through Beijing-based Export-Import Bank of China - Nigeria with soft loan that are project tied. The loan comes with low interest rate of 2.5 percent with a tenor of 20 years, including grace period of seven years. This reduces the Debt Service provision in the Annual Budget lower than it would have been.

The Infrastructures Built From Chinese Loans: [/b]The Chinese loans are project tied. It is spent on eleven projects; 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).

Part of the project includes Rehabilitation and Upgrading of Abuja-Keffi- Makurdi Road Project. These projects will play a role in the repayment of the Chinese debt, as they are revenue generating projects or have the potential to generate revenue for the country.

The Debt Management Office (DMO), while reacting to the controversy trailing the Chinese loan, had stated that, “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”.

[b]China Is Not Nigeria's Main Source Of Loan

China, according to DMO, accounts for 3.94% of Nigeria’s total public debt of $79.303 billion, as China's loan to Nigeria stands at $3.121 billion. This represents 11.28 percent of Nigeria’s external debt profile of $27.67 billion at the time.

Meanwhile, other loan sources on Nigeria's external debt list show that the World Bank Group tops the list of Nigeria's external debt with $10.1 billion, Eurobonds account for a total $10.86 billion or 39% of external debt.

Also, as of February 2020, Nigeria has an African Development Bank (AfDB) outstanding loan of $2.1 billion - Amidst the COVID-19 pandemic, Nigeria got about €288.5 million in addition. Nigeria got $3.4 billion IMF COVID-19 relief loan in April. Meanwhile, three months ago, Nigeria was relieved of the €22.4 million (N8.9 billion) debt it owed Germany.

Why China Became Nigeria's Go-to-source For Loan

While China is not Nigeria's main source for loan, it has become the most recent source for quick or project tied loan. Aside from China providing Nigeria soft loan of low interest rate, the Asian country was the only.... https://allnews.ng/news/breakdown-of-china-s-role-in-nigeria-s-debt-problem-and-misunderstanding-of-sovereign-clause

What have we gained from all these loans? What is usually wrong with us? Are we blessed in this country? Why are our rulers so wicked like the satan himself?

I really thing we really really more than loan from china make just balance us small money and take over the country

Make dem kuku sell this conrtree give China now