Nigeria’s total borrowing from China hits $4.3bln (2024)

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Nigeria’s total borrowing from China hits $4.3bln? ›

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).

In the quarter reviewed, DMO said Nigeria has borrowed $4.34 billion from China through the Exim Bank of China. The loan is 84 percent of the country's total bilateral debt, implying that the Asian nation is Nigeria's largest creditor.

TINUBU WILL SUCCEED. Nigeria pays off $1.81bn debt owed China, India, Germany, services CBN loans with N912bn Nigeria has honoured its debt obligations to China, Germany, and others. The Federal Government revealed the amount it repaid to the countries in a statement on Monday.

“Nigeria's total public debt stock as at June 30, 2023, was N87. 38tn ($113.42bn). It comprises the total domestic and external debts of the Federal Government of Nigeria, the thirty-six states, and the Federal Capital Territory,” DMO said. “The major addition to the Public Debt Stock was the inclusion of the N22.

Data from the World Bank shows that 49 African countries owe 39% of their debt to multilateral institutions, 35% to private creditors (excluding Chinese private creditors), and 12% of the debt burden on the continent is owed to China and Chinese lenders.

Recent data, derived from the 2018 PEW. Research Centre and released last year, highlights.

Top African dependent country on Chinese debt is Djibouti by 57% of its total external sovereign debt, followed by Angola (49%), Congo DR (45%) Majority of African countries indebted to China are having negative commodity trade balance with it and hence less capable of repaying.

Foreign investor demand for Nigerian assets and money sent home by citizens living abroad surged last month as reforms instituted by President Bola Tinubu's administration started paying off.

Sierra Leone currently owes $78 million to China, which is equivalent to just 2.5% of the government's total public debt. Many Sierra Leoneans, if not President Bio, had expected the Chinese government to have cancelled the entire $78 million owed to China.

The Eurobond Fund is a dollar-denominated mutual fund invested in Eurobonds floated by the Federal Government of Nigeria and other qualifying Eurobonds registered by the Securities and Exchange Commission. Benefits and features of the Euro Bond Fund: Significantly higher returns than domiciliary bank accounts.

Is Nigeria still owing China money? ›

Nigeria's debt to China increased from $3.93bn as of June 30, 2022, to $4.73bn as of June 30, 2023, showing an increase of $800m in one year. It is an increase of 20.36 per cent from the second quarter of 2022 to Q2 2023, according to an analysis of the external debt stock data from the Debt Management Office.

The national debt of Nigeria has increased over time due to various factors, such as government spending, revenue, economic growth, inflation, exchange rates, and interest rates. The ratio of debt to gross domestic product (GDP) is often used as an indicator of the sustainability and solvency of the national debt.

[2] A report by the credit rating agency S&P Global in 2022 estimated that 79 per cent of corporate debt in China was owed by SOEs (the IMF does not break down the proportion of debt owed by SOEs).

Concessional loans, often directed towards infrastructure projects, play a significant role in China's engagement with Africa, and have helped reduce the continent's infrastructure gap. These loans have more favourable terms than standard commercial loans, but can present their own challenges.

The Debt Management Office (DMO) has denied the claim in a report by a national daily which alleged that federal government has defaulted in debt repayment to China for which the report claims, penalties stand at N41.

Source: Chinese Loans to Africa (CLA) Database, 2023. Boston University Global Development Policy Center. Borrowers: Senegal, Benin, Cote d'Ivoire, Angola, Uganda, Ghana, Rwanda and the Democratic Republic of the Congo (DRC) were the borrowers in 2021-2022.

China is central to the debate, with Ghana owing the Asian giant $1.9bn in debt.

Foreign customers in Benin, Togo and Niger are indebted to Nigeria for N132. 2 billion in electricity bills supplied to them from 2018 to the first quarter of 2023. Analysis of quarterly reports produced by the Nigerian Electricity Regulatory Commission (NERC) showed that the amount owed is from the N180.