Documents seen by TheCable have shown that Nigeria is indebted to China to the tune of $3.121 billion dollars as of March 31, 2020.
According to the Debt Management Office (DMO), this represents 3.94 percent of Nigeria’s total public debt, which stood at $79.303 billion as of March 31 (N28.6 trillion).
Nigeria’s total debt to China also accounts for 11.28% of the total external debt stock of $27.67 billion.
“The total borrowing from China of $3.121 billion as at March 31, 2020, are concessional loans with interest rates of 2.50 percent per annum, tenor of 20 years and moratorium of seven years,” the debt office said.
According to the debt office, the low-interest rate reduces the cost of borrowing for the government and the long repayment period means that the principal sum can be repaid over many years.
“These two benefits, make the provisions for debt service in the annual budget lower than they would otherwise have been if the loans were on commercial terms,” it said.
In response to whether China can take possession of the projects if there is a loan servicing default, the DMO said: “Nigeria explicitly provides for debt service on its external and domestic debt in its annual budgets. In effect, this means that debt service is recognised and payment is planned for. In addition, a number of the projects being (and to be) financed by the loans are either revenue generating or have the potential to generate revenue”.
Here is a breakdown of all the projects and the loan amounts (in million USD):
|S/N||Project Description||Amount||Agreement date||Maturity||Amount disbursed||Repayment (principal)||Repayment (interest)|
|1||Nigerian National Public Security Communications system project||399.50||December 20, 2010||September 21, 2030||399.50||76.83||84.92|
|2||Nigerian Railway Modernisation project (Idu-Kaduna section)||500.00||December 20, 2010||September 21, 2030||500.00||96.15||74.52|
|3||Abuja Light Rail project||500.00||November 7, 2012||September 21, 2032||500.00||19.23||60.63|
|4||Nigerian ICT Infrastructure Backbone project||100.00||January 5, 2013||September 21, 2032||100.00||0.00||9.38|
|5||Nigerian four airport terminal expansion project (Abuja, Kano, Lagos & Port Harcourt)||500.00||July 10, 2013||September 21, 2034||455.28||0.00||40.58|
|6||Nigerian Zungeru Hydroelectric Power project||984.32||September 28, 2013||September 21, 2033||518.24||0.00||19.28|
|7||Nigerian 40 Parboiled Rice Processing Plants project (federal ministry of agriculture and rural development)||325.67||April 26, 2016||March 21, 2036||0.00||0.00||0.00|
|8||Nigerian Railway Modernisation project (Lagos-Ibadan section)||1,267.32||August 18, 2017||September 21, 2037||759.84||0.00||19.11|
|9||Nigeria Rehabilitation and upgrading of Abuja-Keffi-Maiduguri road project||460.82||August 18, 2017||September 21, 2037||80.64||0.00||1.84|
|10||Nigeria supply of rolling stocks and depot equipment for Abuja Light Rail project||157.00||May 29, 2018||March 21, 2038||0.00||0.00||0.00|
|11||Nigeria Greater Abuja Water Supply project||381.09||May 29, 2018||March 21, 2038||0.00||0.00||0.00|
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