Under President Muhammadu Buhari’s regime, the federal government’s borrowing from China has increased by 209.15 percent.
Total foreign debts increased by 219.91% from $1.58 billion in June 2015 to $5.07 billion in December 2022. During the review time, total financing from China increased from $1.39 billion to $4.29 billion.
According to available statistics from the Debt Management Office, Chinese loans account for 84.73 percent of the total sum Nigeria owes to other nations around the globe. France, Japan, India, and Germany account for the remainder 15.27 percent.
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According to the DMO, Chinese loans are concessional loans with annual interest rates of 2.50 percent, a duration of 20 years, and a grace time (moratorium) of seven years.
In a document headed ‘Status of Chinese debts as of September 30, 2021,’ the DMO mentioned 15 initiatives that were being financed with Chinese loans as of September 30, 2021.
The Nigerian 40 Parboiled Rice Processing Plants Project (Fed. Min. of Agric & Rural Dev.), Nigerian Railway Modernisation 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 are among the other loans listed.
