- $3.313bn disbursed, 3.121 currently outstanding
- TI, CISLAC seek end to wastage by MDAs
Amid fiscal pressure that threatened its capacity to fund capital projects, the federal government sealed $5.575 billion loan agreements with the Export–Import Bank of China between December 10, 2010 and May 29, 2018, a Debt Management Office (DMO) document has revealed.
With Nigeria’s rising exposure to external debt valued at $27.676 billion as at March 2020, Transparency International (TI) has decried federal government borrowing spree despite huge resources wasted by ministries, departments and agencies (MDAs).
Details about the loan agreements were contained in the DMO’s status of loans obtained from China EXIM between December 10, 2010 and May 29, 2018. The status x-rayed Nigeria’s debt exposure to People’s Republic of China as at March 31, 2020
Of the total $5.575 loan agreements wrapped up with this timeframe, the document showed that China EXIM bank had already disbursed $3.313 billion while the federal government was left with an outstanding loan of $3.121 billion.
Since the December 20, 2010 loan agreement was first closed, DMO’S document revealed that the federal government had paid $192.21 million as part of the principal and $269.68 million as interest on different loans obtained as at March 31, 2020.
The document showed that the facilities were sealed with the following terms of agreement: 2.5% interest rate; seven-year period of grace and 20-year period of maturity.
Under the administration of President Muhammadu Buhari, for instance, the DMO’s document revealed, the federal government applied for $2.591 billion between August 26, 2016 and May 29, 2018, a period of one year and nine months.