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Sunday, 14 August 2016

See The Extreme Conditions China Gives To Nigeria Before They Can Grant Buhari $20bn Loan

Apparently to secure firm repayment plan and to understudy viability or otherwise of key sectors for which Nigeria is seeking a $20b loan from the China EXIMbank, the Chinese government has listed certain demands to be met by the Federal Government.

Part of the conditions, According to the Guardian is for the Federal Government, through representatives from key ministries such as Finance, Budget and National Planning, Foreign Affairs, among others, to fine-tune terms and agreements, including possible repayment plan with the China Ministry of Commerce.

It was also learnt that the correspondences between the two countries are also to fast-track the understudying of key areas Nigeria needs the concessionary loan for, and for the purpose of making advisory contributions on the way forward.

Other conditions include; appointment of key Chinese officials to closely supervise funds released to the Nigerian government on loan agreement.

It would be recalled that Minister of Budget and National Planning, Udoma Udo Udoma in Beijing recently requested the Chinese government to assist Nigeria financially in funding critical infrastructure in the country. He presented a request for $20billion concessionary loan..

The Chinese government had although expressed willingness to support the Federal Government with a loan to finance capital budget deficits in the country, it however expressed concerns over how the loans will be managed to achieve maximum value, saying that its technocrats will of necessity first understudy Nigeria’s request and offer necessary advisory and financial assistance once the team finalize with the Nigerian government for onward transmission to China Exim bank for action.

Udoma, while describing the mission of his delegation to China, said Nigeria is trying to get as much of the Chinese funding for projects in the form of grants, aids, investments and loans, promising that the Federal Government has constituted a team of experts to liaise with the Chinese government in order to make the loan come through.

The Chinese government is however mindful of logistics on ground to pull such a heavy loan through, repayment challenges but the minister gave assurance that Nigeria will not exceed limits of loans she can repay.

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