China loans Nigeria $658.72m despite previous loan approval hiccups, according to available data from the Debt Management Office. In 2021, former Minister of Transportation Rotimi Amaechi claimed that China had become skeptical about lending money to Nigeria due to a National Assembly probe into the Federal Government's ability to repay its loans.
The combined effort of the Senate President and Speaker eventually stopped the investigation. Recently, World Bank President David Malpass urged China to be more transparent about its loan terms and conditions to developing African economies. Countries such as Ghana and Zambia are reportedly struggling to repay their debts to Beijing.
Malpass also cautioned African governments against offering collateral to make a loan, as this locks up the asset for generations. Chinese loans account for 84.73% of the total amount Nigeria owes to other countries worldwide, according to the DMO. France, Japan, India, and Germany make up the remaining 15.27%.
Meanwhile, China's Exim Bank declined an earlier agreement to loan Nigeria $22.79bn. Despite this, the Nigerian Railway Modernisation Project (Kaduna-Kano segment) may still be impacted, with the contractor CCECC Nigeria Limited and the Federal Ministry of Transportation seeking a loan of $973.48m from the China Development Bank.
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