China To Loan Nigeria $4.5 Billion To Boost Agriculture

Audu Ogbeh, the minister of Agriculture, and Abdulaziz Yari, Zamfara State Governor, made the disclosure on Tuesday while speaking to journalists in Abuja.

According to Ogbe, the loan is to enable Nigeria purchase farming tools including tractors, bulldozers, graders, irrigation pumps, amongst others.

“We signed an agreement which engages all the states including FCT from the Federal Ministry of Agriculture for the procurement of strategic machinery for rural development and agriculture; tractors, bulldozers, graders, irrigation pumps, tarsiers and so on from China.

“The Chinese were willing to supply us these things for a long term basis, 20 years credit at an interest rate of 1 percent per annum.

‎“They are giving us a credit line of $4.5 billion which will cover the machineries and infrastructure that is rural earth dams, irrigation and the loan has a 20 years repayment term with 5 years moratorium,” the governor said.

“Initially we started negotiations to drop a counterpart funding of 25%, but understanding the economy of Nigereria, we negotiated to give a counterpart funding of 10 per cent which we believe Nigeria can do and we are targeting the natural resources fund for the counterpart funding.”

Mr. Yari said the government is making a huge progress with the partnership, adding that China is coming first to support the country.

“The president has given us his commitment and also asked us to engage the minister of finance, budget and national planning and the CBN to conclude and then the minister of agriculture will make presentation to council, then to the national assembly for final approval,” he added.