‘Chinese loans plunge more African countries into financial crisis’ – Report

Massive loans from China, engineered to fast-track economic growth across countries like Ghana, Guinea, Ethiopia, and a cluster of 13 Heavily Indebted Poor Countries (HIPCs), have unfortunately plunged these nations into a deeper financial crisis. A recent report submitted to the US Congress by the US-China Economic and Security Review Commission unearthed the stark realities of these indebted nations. The report spotlights Ghana as the most indebted among these nations, with an eye-watering debt to China amounting to $31.1 billion. Guinea, another West African nation, trails closely, with a substantial…

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Concern mounts, as Nigeria’s dependency on China deepens

…Trade deficit, debt balloon Bi-lateral trade deficit against Nigeria is widening in favour of China, with available data showing a steady increase in Nigeria’s importation from the Asian country, rising by 183.91% from N530.98bn in the first quarter of 2018 to N1.51tr in Q1, 2022. According to the National Bureau of Statistics (NBS) data on foreign trade, China is responsible for the bulk of imports into Nigeria, ranking number one on the list of top 10 countries in the five quarters under review. However, export to China is negligible, as…

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Nigeria’s debt to China rises to $4.15 billion – DMO

The Debt Management Office, (DMO), has in its latest data revealed that Nigeria’s debt to China is $4.15 billion as of September, 2021. According to the DMO, this balance is out of a total debt of $6.5 billion available for Nigeria to draw down. Most of the debts are for a period of 20 years, with a grace period to repay the principal of about 7 years. Only a $200 million debt had a tenor of 12 years with a grace period of 5 years. The loans are broken into…

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China reluctant to lend more money to Nigeria – Official 

..Believes country is over-exposed The Federal Government is seeking $1 billion to enable work to continue on a gas pipeline costing up to $2.8 billion after Chinese lenders failed to disburse cash as quickly as expected. China reportedly developed cold feet after they pledged to offer most of the funds. It is the latest sign of falling Chinese financial support for infrastructure projects across Africa, after years of major Chinese lending for railway, energy and other projects. A spokesman for the NNPC, which is building the 614-km Ajaokuta-Kaduna-Kano (AKK) pipeline,…

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N190bn Debt: Abuja-Kaduna train service and burden of China loan

Kaduna train project is one of the foremost projects executed with the loans from China, and there are doubts on how this project can generate enough to finance its repayment process, four years after the route was commissioned. In 2010, the Federal Government borrowed $500 million (about N190.5 billion) from the Chinese Government through the China Exim Bank to build the facility. A Chinese firm, the CCECC built the facility as part of the loan terms. The loan which is to be paid over a period of 20 years had…

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China Loan: OPC accuses Buhari’s government of mortgaging NPA as part of payment plan

The Oodua People’s Congress (OPC) has condemned the President Muhammadu Buhari led government’s loan arrangements with China. It said the administration had embarked on a suicidal mission that will push the Nigerian economy to its knees. OPC Publicity Secretary, Yinka Oguntimehin, in a statement on Tuesday expressed worry that the borrowings would make the South-West the greatest loser. Noting that Minister of Transportation, Rotimi Amaechi, said it will take the Federal Government about 20 years to pay back the loan, OPC decried that government failed to judiciously utilise previous loans…

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Nigeria’ll pay back China loan in 20 years – Amaechi

The Minister of Transportation, Rotimi Amaechi, says the Nigerian government has the capability to pay back loans collected for the construction of rail projects within the stipulated period of 20 years. Amaechi, in a statement on Saturday, said China was the only country giving out loans with a low-interest rate of 2.8 per cent. He said no country in the world would give out a loan without a guarantee to pay back such loans. “The trade agreement between Nigeria and China, the ministry of transportation does not take loan, everything…

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