WRONG PERCEPTION OF APC ADMINISTRATION OVER CHINESE LOANS
Opposition Party PDP Supporters have been misleading Nigerians that APC led Government has mortgaged Nigeria’s future generations on Chinese loans.
Before they deceive people further, let Nigerians know the truth about which Party in Government took more Chinese loans between PDP and APC.
Below is the History of Chinese loans taken by Nigerian Governments according to Punch Newspaper in a 2021 publication:
“The Debt Management Office DMO has made some statements on the China Loans in recent times.
In a statement the DMO said:
The total borrowings from China of $3.121bn as at March 31, 2020, are concessional loans with interest rates of 2.5 per cent per annum, tenor of 20 years and grace period (moratorium) of seven years.”
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“According to the DMO, the terms are compliant with the provisions of Section 41 (1a) of the Fiscal Responsibility Act, 2007.
In addition, the low interest rate reduces the interest cost to government while the long tenor enables the repayment of the principal sum of the loans over many years.
Eleven projects, ranging from water supply, power generation, railways, airport terminals, communication to agricultural processing are funded by the loans acquired.
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The Director-General, DMO, Patience Oniha, had in February said, “So far, let’s be very clear that there has not been any default, whether of local or international debt.”
The earliest of the funding agreements between Nigeria and China was signed in 2010 with an interest rate of 2.5 per cent yearly, a repayment period of about 20 years and a grace period of seven years.
If Nigeria is unable to pay its first debt by 2038, the country may have to lease out any of the Chinese-funded projects in Nigeria to China.
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- The first loan project was for the Nigerian national public security communication system project with $399.50m agreed on December 20, 2010 and disbursed.
The second loan was for the Nigerian railway modernisation project (Abuja – Kaduna section) with $500m agreed on December 20, 2010 and disbursed.
The third loan was for the Abuja light rail project with $500m agreed on November 7, 2012 and disbursed.
The fourth loan was targeted at Nigerian ICT infrastructure backbone project with $100m agreed on January 5, 2013 and disbursed.
The fifth loan was meant for the Nigerian four airport terminals’ expansion project (Abuja, Kano, Lagos and Port Harcourt) with $500m agreed on July 10, 2013 but $455.28m was disbursed, which is 91.06 per cent of the agreed amount.
The sixth loan was for the Nigerian Zungeru hydroelectric power project with $984.32m agreed on September 28, 2013 but only $518.24m was disbursed, which is 52.65 per cent of the agreed amount.
Summary of Chinese loans taken by PDP Government from 2010 to 2013 – Government applied for 6 loans, and received 6 loans as follows:
Dec 20, 2010: $399.50 Million
Dec 20, 2010: $500.00 Million
Nov 7, 2012: $500.00 Million
Jan 5, 2013: $100.00 Million
July 13, 2013:$455.28 Million
Sep 28, 2013:$518.24 Million
Total Loan taken by PDP Government = $2,473.02 Million (Approx $2.5 BN).
Loans under APC Government:
- The seventh loan was for the Nigerian 40 parboiled rice processing plants project (Federal Ministry of Agriculture and Rural Development), with $325.67m agreed on April 26, 2016, but no loan was disbursed by China.
No loan taken.
- The eighth loan was for the Nigerian railway modernisation project (Lagos – Ibadan section), with $1.27bn agreed on August 18, 2017 but only $759.84m was disbursed, which is 17.50 per cent of the agreed amount.
The ninth loan was targeted at the rehabilitation and upgrading of Abuja-Keffi-Markurdi road project with $460.82m agreed on August 18, 2017 but only $80.64m was disbursed, which is 59.96 per cent of the amount agreed.
The 10th loan was meant for the Nigeria supply of rolling stocks and depot equipment for the Abuja light rail project with $157m agreed on May 29, 2018, but nothing was disbursed.
No loan taken.