Nigeria approaches China for $17bn loan

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Minister of Finance, Budget and National Planning, on Tuesday explained why the Federal Government decided to approach the China-Exim Bank for a $17bn loan request.

Nigeria approaches China for $17bn loan
Minister of Finance, Zainab Ahmed

According to the finance minister, the World Bank, the African Development Bank, and other lending institutions were not showing much interest when Nigeria approached them during recession.

Zainab Ahmed, stated this in the Senate while defending the decision of the regime of President to borrow $29.96bn loan to fund critical infrastructure across the country.

She explained that the 8th National Assembly had approved about $6bn for the Federal Government out of the $29.96bn loan, leaving a balance of $22.8bn.

Ahmed told the Senate Committee on Local and Foreign loans that the Federal Government and some state governments were jointly requesting the loans from various lending institutions.

She said 70 percent of the loan, which is about $17bn, would come from the China-Exim Bank while others would be sourced from other lending institutions such as the Islamic Development Bank.

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The minister maintained that the country had no issue with its current debt profile but noted that its dwindling revenue could not fund the various projects that were expected to have a meaningful impact on the lives of Nigerians.

She said, “The funds ($22.8bn) will be channelled to the funding of infrastructure, which will enhance the productivity of our economy.