Delay in Chinese Loan Alert, Changes Nigerian Government Focus to European Banks as Search for Funds Continues
- Nigerian government seems to have concluded plans to open up search for funds in as China delay disbursement for loan requested
- China over the last few years have been the first point of call for Nigerian government when in search of funds for its infrastructure project
- However, in response to allegations of colonization, China rethought its strategy and opted to provide more loans to SMEs and people in the agriculture and technology industries
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Following the delay in China loan disbursement, the federal government is presently attempting to get new loans from Europe, Dailytrust reports.
Chinese loan have over the years come handy for the Nigerian government in its drive to build train infrastructure, which is recognized as one of the present administration's significant accomplishments.
However, in a meeting in December 2021, China announced plans to cut down loans given to African leaders following backlash across the world.
Source: Getty Images
Chinese president talks on plan to reduce loans to government
Chinese President Xi Jinping while speaking with the triennial Forum of China-Africa Cooperation, held in Senegal stressed that over the next three years, his country would slash the amount of money it supplies to African countries by a third (1/3) to $40 billion.
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China said it wants to rather focus on funding projects by young smart Africans in tech, Agriculture and other sectors.
Ameachi hints on getting loan from European countries
Minister of Transportation, Rotimi Amaechi announced the difficulties getting loans from China in recent months.
He told Journalists after the Federal Executive Council meeting that the delay in some infrastructure projects is because China is yet to disbursed loans requested.
Amaechi said:
“Actually, that is why there is a delay. We were waiting on the Chinese to give us the loans we applied for and till today, they’ve not replied. They kept delaying us – will the delay extend our tenure?
“The answer is no. We’ve gone to Standard Chartered Bank and while they’ve done financial closure, they’ve approved some level of funding.
“We are also pursuing the Port Harcourt-Maiduguri line with Standard Chartered Bank. The Lagos-Kano, part of it will come from Standard Chartered Bank, and part of it will come from some commercial banks in China.”
When asked to disclose the amount of money to be sourced from Europe, he said the figure is not readily available
“I don’t have that figure here, I have to go back to the office. But remember that we have about three railway projects that are yet to start construction and they include the Port Harcourt-Maiduguri, Kano-Maradi and then the Abuja-Warri.”
List of 15 projects why Nigeria agreed N2.50trn loan with China
Legit.ng had earlier reported that the Debt Management Office (DMO) announced Nigeria's overall public debt has risen to N38 trillion as of September 30, 2021.
The loan from China is one area many Nigerians are interested in amid stories of assets being seized from nations unable to repay their debt.
DMO has released a thorough analysis of loans received from China in the last 13 years, including how much has been returned and for what projects the funds were obtained
Source: Legit.ng
