NIGERIA’S TOTAL DEBT INDEBTEDNESS TO CHINA NOW STANDS AT $3.121 BILLION, REPRESENTING ABOUT 3. 69 PER CENT OF ITS TOTAL LOAN STOCK OF $84.574 BILLION.
THIS HUGE INDEBTEDNESS COMES AMID CHINA’S RISING INFLUENCE AS MAJOR FINANCIER OF A NUMBER OF LARGE TICKET PROJECTS IN NIGERIA, INCLUDING THE $874 MILLION, 187KM ABUJA-KADUNA RAIL, THE $1.2 BILLION, 312KM LAGOS-IBADAN EXPRESSWAY, THE $1.1 BILLION KANO-KADUNA RAILWAY LINES AND THE $600 AIRPORT TERMINALS IN ABUJA, LAGOS, PORT HARCOURT AND KANO.
CHINA’S INCURSION INTO NIGERIA’S ECONOMY FOLLOWED A MEMORANDUM OF UNDERSTANDING (MOU) BOTH COUNTRIES SIGNED IN 2006 ON THE ESTABLISHMENT OF A STRATEGIC PARTNERSHIP, THE FIRST FOR AN AFRICAN COUNTRY.
THIS WAS FURTHER ANCHORED ON AN OIL-FOR-INFRASTRUCTURE ARRANGEMENT, IN WHICH CHINESE COMPANIES WERE OFFERED FIRST ACCESS TO OIL-PROCESSING LICENCES.
RECENTLY, DEBT MANAGEMENT OFFICE (DMO), SAID NIGERIA’S DEBT STOCK STANDS AT N32.223 TRILLION OR USD84.574 BILLION.
THIS IS MADE UP OF DOMESTIC AND EXTERNAL DEBT STOCKS OF THE FEDERAL GOVERNMENT OF NIGERIA (FGN), THE 36 STATE GOVERNMENTS AND THE FEDERAL CAPITAL TERRITORY (FCT). THE BREAKDOWN OF THE PUBLIC DEBT STOCK SHOWED THAT 37.82 PER CENT WAS EXTERNAL, WHILE THE BALANCE OF 62.18 PER CENT IS DOMESTIC.
