Like Uganda whose major assets and their only international Airport has been taken over by China due to their inability to repay their loans worth $207 million, borrowed in 2015, Nigeria could be at a risk of loosing some of its assets too to China if they can’t pay up the loan by 2038.
Although Nigeria has paid part of the loan taken in the previous years but she is currently owing $3.48 billion as of June 2021.
Below are the run down of all the loans Nigeria collected from China and what the loans were used for.
On 20th December 2010, Nigeria took their first and second loan worth $399.50 million and $500 million respectively. The loans were for national security and Nigerian railroad project.
In 7th November 2021 and 5th January 2013, another loan worth $500 million and $100m was disbursed for Abuja rail light and the national ICT framework project. The 5th and 6th loan were worth $500 million and $984.32m. But $455.28m and $518.24m respectively were actually dispensed for airport terminal and Zungeri hydroelectric power project. These loans were taken on July 2013 and September 2013
The 7th and 8th one which was taken on 26, April 2016 and 18 August 2017 were worth $325.67 million and $1.27 billion. They were for rice processing plant and rail line modernization project. It should be noted that only $759.84 million of the concurred 8th loan was dispersed for the later project.
On 18th August 2017 and 29th May 2018, China lend the federal government of Nigeria $460.82 million and $157 million. Only $80.64 million from the concurred loan was dispensed for reconstruction of Abuja-Markurdi road project and the other loan which was intended for warehouse equipment for Abuja rail light project was not dispensed.
The last loan was taken on 29th of May 2018. It was worth $381.09 million. But the loan was never dispensed. It was intended for Abuja water supply project.
