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Buhari to sign loan deal with China

By on April 8, 2016

President Muhammadu Buhari will sign a loan deal with China during a visit next week as the Federal Government seeks funds to finance the over N2tn budget deficit

This is expected to help the government to finance badly-needed infrastructure projects.

Speaking to Reuters, the Special Adviser to the President on Media, Mr. Femi Adesina, said, “I can’t tell you how much until the day the loan will be signed. Both countries will also be signing some bilateral agreements to strengthen their relationship; that is all I can say now.”

The economy has been hit hard by a slump in oil prices and the Federal Government has been in talks with China’s Export Import Bank for a loan for months.

A financial source said the loan would fund Chinese firms’ infrastructure projects in Nigeria.

In February, financial and government sources said the loan could be as high a $2bn but officials have not provided an update since then.

The Federal Government has said it wants to raise about $5bn abroad to cover part of its 2016 budget deficit, which could be as high as N3tn ($15bn).

 

[Punch]