Nigeria Pays N97.354 Billion Interest On Chinese Loans Over 9 Years

Nigeria has spent N97.354  billion ($269.68 million) on interest repayment of the  $3.313 billion loans  it took from the China  Exim Bank in over 9 years,  new data from the Debt Management Office reveals.

Nigeria had between December 2010 and August 2017 received a total of $3.313.50 billion (N1.196 trillion) from China to execute 11 projects in the country.

Details of the loans show that they were given to  Nigeria at  an interest rate of 2.5% per year, with a repayment period of 20 years and grace period of 7 years.

Nigeria has only made payment of $192.21 million (N69.387 billion) on principal repayment which has reduced the country’s indebtedness to China by 5.8% to $3.121.29billion  as of March 2020, from the $3.313 billion initial amount.

However THE WHISTLER observed that the country had already paid an interest of $269.68 million (N97.354 billion) in over 9 years from December 2010 to March 2020, an amount which represents 8.1% of the principal.

According to the data published by the Debt Management Office, a total of $5.575.72 billion (N2.012 trillion) was requested by Africa’s largest economy for the capital projects.

However, no disbursement has been made with respect to three projects including: Nigeria’s 40 parboiled rice processing plants,  Supply of rolling stocks and depot equipment for Abuja Light Rail Project and Greater Abuja Water Supply Project, worth $325.67 million, $157 million and $381.09 million respectively. 

Also, the DMO noted that four of the projects had only received $1.814.04 billion (N654.868 billion), as part of the disbursement for the projects estimated to cost $3.212.46 billion (N1.159  trillion).  

Meanwhile, four projects have received full disbursement worth $1.499.50 billion (N541.319 billion) the data revealed.

“Total Borrowing by Nigeria from China was USD3.121 billion (₦1.126.68 billion). This amount represents only 3.94% of Nigeria’s Total Public Debt of $79.303 billion (N28.628.49 billion) as of March 31, 2020. Similarly, in terms of external sources of funds, Loans from China accounted for 11.28% of the External Debt Stock of $27.67 billion at the same date,” DMO said.

Exchange at N361 per dollar.