Federal Government’s borrowing from China has grown by 209.15 per cent under the Major General Muhammadu Buhari (retd.) administration.

This is as total bilateral loans rose by 219.91 per cent from $1.58bn as of June 2015 to $5.07bn as of December 2022. Total borrowing from China rose from $1.39bn to $4.29bn in the period under review.

Available data from the Debt Management Office revealed that Chinese loans make up 84.73 per cent of the total amount Nigeria owes to other countries of the world. The remaining 15.27 per cent is spread across France, Japan, India, and Germany.,

According to the DMO, loans from China are concessional loans with interest rates of 2.50 per cent per annum, have a tenor of 20 years, and grace period (moratorium) of seven years.


As of September 30, 2021, the DMO listed 15 projects there were being funded with Chinese loans in a document titled, ‘Status of Chinese loans as at September 30, 2021.’

The more listed loans include the Nigerian 40 Parboiled Rice Processing Plants Project (Fed. Min. of Agric & Rural Dev.), Nigerian Railway Mordernisation Project (Lagos – Ibadan section), Nigeria Rehabilitation and Upgrading of Abuja – Keffi – Markurdi Road Project, Nigeria Supply of Rolling Stocks and Depot Equipment for Abuja Light Rail Project, and Nigeria Greater Abuja Water Supply Project.

While Nigeria has drawn consistently from China’s well under Buhari, China-Exim Bank declined recently an earlier agreement to grant Nigeria a loan of $22.79bn.

The loan had been approved under the 2016–2018 Federal Government External Borrowing (Rolling) Plan by the Senate and the House of Representatives on March 5, 2020, and June 2, 2020, respectively. This may impact the Nigerian Railway Modernisation Project (Kaduna–Kano segment), with the contractor (CCECC Nigeria Limited), and the Federal Ministry of Transportation, engaging China Development Bank for a loan of $973.48m.


Despite the recent hiccup in loan approval, China loaned Nigeria $658.72m in 2022.

In 2021, the immediate past Minister of Transportation, Rotimi Amaechi, alleged that China was becoming sceptical of borrowing Nigeria money because of a National Assembly probe of the Federal Government’s ability to pay back its loan.

While answering questions on Politics Today, on Channels Television, Amaechi alleged that the probe prevented China from granting more loans to Nigeria.

He added that the combined effort of the Senate President and Speaker had stopped the probe, which had helped.

Recently, the President of the World Bank, David Malpass, told The BBC that he was concerned about some of China’s loans to developing economies in Africa.

He noted that the terms and conditions of these loans need to be more transparent. This is as countries including Ghana and Zambia appear to be struggling to repay their debts to Beijing.

He said, “What I encourage strongly is that they be transparent in their contracts. That’s been one of the problems; if you write a contract and say ‘but don’t show it to anybody else’, that’s a minus. So, get away from that.”

He warned, “For governments in Africa, they shouldn’t be offering collateral as an inducement to make a loan, because it locks it up for generations. That’s been happening with China.”

Source: https://punchng.com/Chinese-loans-rise-by-209%-under-Buhari-hit-$4bn

Nothing to show

Buhari and his clueless cronies in the government are clueless wasters all this while. Wetin drug baron Tinubu will do to redeem his image. I just dey smile here 🤨🤨🤨🤨🤨

The painful thing about all these loans is that there nothing on ground to show for it.

Am sure the Chinese have their own agenda that's why they keep boring nigeria money.

I don't even know what they use all the money for, nothing tangible

Buharî has always been known to be a very USELESS, CORRUPT AND UNFORTUNATE LEADER, even since 1983.

Nice one 🕐

Tinubu is in support of it.
That's why he said he would continue from where Buhari stopped.
Tinubu would even want to borrow far more than Buhari did.

We all know that Tinubu is more corrupt tha Buhari, our national treasurey would be depleted by a gang of Political Heynas like FFK, Ganduje, Keyamo and so on.
That's why FFK is fighting tooth and nail like he's even the one that won the presidency.

He can't imagine loosing a lifetime opportunity to loot Nigeria with Impunity after having stayed out for 8 years.

If you think Tinubu's govt can change anything in Nigeria, I'm sorry for you.

And those fools who benefits from it will conclude that they is nothing wrong to collect a loan even when they is nothing to present from the loan. Even Buhari is tired and packing to leave Aso Rock.

APC is a threat to our National unity

Dem never even enter dem don dey blame.

With Tulumbu, I am seeing an administration that is worse than Buhari's.

From frying pan to fire. 😂 😂

I am seriously saving up to japa.

We don't have a working country.

China will soon send delivery van to come & pick up Nigeria. Na their property.

Ok O.

Nigerians go get sense by force.

APC is a cancer to Nigeria.

There was a country.
However, help is on the way. I believe Tinupu has the balls to take Nigeria out of debt. He is an economic strategist and financial juggernaut. Look what he did in Lagos. As at 2007, Lagos was debt free.

Buhari remains the only President to complete a railway in Nigeria after the colonial masters.

I will always remember him for this singular act of using the loan judiciously for railway.

PDP still has their National secretariat uncompleted despite 16 years in government with crude oil sold at a high price.
https://www.nairaland.com/2292733/photo-new-pdp-national-hq

Tinubu and buhari is the worst things that happened to Nigeria

Buhari is the worst president ever!
A clueless disaster!

With nothing to show for it

Yet people voted and fought to consolidate the position of these crooks in power to their own detriment.

Black man And shallow thinking

Up buhari

This is good. All APC supporters are beneficiaries of the loan. Each APC-Buhari supporter receive $100 a month from the loan..

Buhari the best thing after roasted corn.

KanwuliaExtra:
Nothing to show

2nd Niger bridge

Lagos/Ibadan Road

Etc

And some fool rewarded apc for another 4 years of borrow borrow

What do they even use the money for

Wow

maleekberry:
The painful thing about all these loans is that there nothing on ground to show for it.

Am sure the Chinese have their own agenda that's why they keep boring nigeria money.

basically in the next 27 years , we should be ready for Chinese invasion

Why

Well, between 2015-2021, oil prices were below what could sustain Nigeria. So, loans had to be taken. Between 2007-14, oil prices were higher than 100 dollars per barrel. Even then, they were not high enough to sustain us, so even then we took loans.

This article from 2004 explains it in detail

Corden and Neary (1982) have demonstrated how Dutch disease occurs in an economy. According to them, in a country experiencing "boom" in the export of a commodity, the economy can be divided into three sectors: the "booming" export sector, the "lagging' traditional export sector and the non-export sector. The Dutch disease occurs when the traditional export (tradable goods) sector is crowded out by the booming export sector and the non-tradable goods sector. The lagging traditional tradable goods sector may include cocoa, palm produce, cotton, rubber, coal, copper, textiles and some manufactured goods while the booming export sector may be crude oil, coffee, gold, etc. The non-tradable (non-export) goods sector covers all those goods that are produced for domestic consumption only, e.g. staple food items, clothing, building materials, locally-assembled cars. Where crude oil (and gas) is the booming export sector, the non-oil export sector may be crowded out by the oil sector and the non-tradable goods sector of the economy. This can happen when the oil revenue windfall increases domestic demand for non-tradable goods and pushes up domestic prices leading to an appreciation of the real exchange rate which in turn reduces the competitiveness of the non-oil export sector. This will in turn lead to a reduction in non-oil exports in both quantum and value terms. The oil windfall may also lead to movement of the factors of production in the economy. For instance, capital and labor (and land) may shift from the non-oil export sector to the oil sector (in order to maintain or increase reserves and production) and the non-tradable goods sector (to take advantage of the growing domestic demand). This explains why the increase in oil prices and the subsequent oil revenue windfall in many oil-exporting countries have tended to depress their non-oil export sector while at the same time generating a boom in both the oil and the non-tradable goods sectors. With capital and labor shifting from the non-oil export sector to the oil-sector and non-traded goods sector, firms in the non-oil export sector are forced to either close down or reduce their scale of operation. The boom in the oil and non-traded goods sector increases the demand for imported goods. This may not be a problem in the short-term so long as the country has enough foreign exchange to pay for the imports. The depression in the non-oil export sector and the boom in the other two sectors have medium to long term implications for the economy because the oil windfall will not be permanent given the volatility, unpredictability and exhaustibility of crude oil. For instance, if there is a decline in oil prices and oil revenue, the lagging and collapsing non-oil export sector will not be able to compensate for the drop in oil revenue while domestic demand for the non-traded goods and imports remain sticky. Consequently, the country will be forced to borrow from the international financial market to compensate for the decline in oil revenue. Over time, external debts will increase and so will the debt service obligations. Even when oil prices go up later and there is another round of oil windfall, it is difficult to correct the earlier damage or distortions created by the initial or previous oil windfall. In some cases, the oil exporting country may be forced to adopt some form of structural adjustment program (SAP) to correct such distortions or imbalances. Some of these SAPs are painful and may increase the prevalence, depth and severity of poverty.

See what I mean?

Does that mean Buhari is a good leader? No. That is where diversifying the econonmy and cutting subsides comes in, as well as fighting corruption, all of which was not done.

Source of quote here

Very inept Mallam
Ran Nigeria into the ground

No wonder China refused to borrow them again

HenryThegreat1:
And some fool rewarded apc for another 4 years of borrow borrow

China say them no borrow again oo

This good news
China could have no claim to Nigerian property, as all of such would be covered under the principle of sovereignty and territorial integrity.

However the exception to this rule is when a nation incurrs debts in the course of a commercial transaction, the effect is that the sovereignty of that nation is waived with respect to its liability. That does not mean China can take ownership of Nigeria, but it means that China can lay claim to some assets belonging to Nigeria.

The only issue I have with this is that the particular property to be claimed is are too much.