The President Muhammadu Buhari-led administration has borrowed N830 billion ($2.02 billion) as loans from China since its inception in 2015.
According to statistics obtained from the Debt Management Office, Nigeria’s total debt from China as of June 30, 2015, stood at $1.38 billion (N567 billion).
However, as of March 31, 2021, the country’s debt portfolio from China had risen to $3.40 billion (N1.3 trillion).
According to the DMO, loans from China are concessional loans with interest rates of 2.50 per cent per annum, a tenor of 20 years and a grace period (moratorium) of seven years.
The debt office said that the terms of the loans were compliant with the provisions of Section 41 (1a) of the Fiscal Responsibility Act, 2007.
The loans from China are tied to some projects. The projects, (eleven in number as at March 31, 2020), include the Nigerian Railway Modernisation Project (Idu-Kaduna section), the Abuja Light Rail Project, Nigerian Four Airport Terminals Expansion Project (Abuja, Kano, Lagos and Port Harcourt), Nigerian Railway Modernisation Project (Lagos-Ibadan section) and the Rehabilitation and Upgrading of Abuja-Keffi-Makurdi Road Project.