Chinese loans account for 84.73% of the country’s total loans



Nigeria’s total borrowing from China climbed from $1.39 billion to $4.29 billion between June 2015 and December 2022, according to data from Debt Management Office (DMA).

The country’s borrowing from China surged by 209.15 percent under the outgoing president Muhammadu Buhari’s administration, The Punch newspaper reported.

Chinese loans account for 84.73 percent of the country’s total loans, with the remaining 15.27 percent spread across France, Japan, India, and Germany, DMO data revealed.

Loans from China are concessional loans with interest rates of 2.50 percent per annum, have a tenor of 20 years, and a grace period (moratorium) of seven years.

As of September 30, 2021, the DMO listed 15 projects funded with Chinese loans, which included the Nigerian Railway Modernisation Project (Lagos–Ibadan section), Nigeria Supply of Rolling Stocks and Depot Equipment for Abuja Light Rail Project.