Economy & Finance, General, Government Policies & Politics

Nigeria Get $6bn Infrastructure Loan From China

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has been offered a loan of $6bn dollars infrastructure loan from .

The Minister of Foreign Affairs, Geoffrey Onyeama, who travelled with  President  to said “It is a credit that is on the table as soon as we identify the projects,”

“It won’t need an agreement to be signed; it is just to identify the projects and we will access it,” he said.

Also, the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, said in a statement that the Chinese President, Xi Jinping, offered $15m agricultural assistance to for the establishment of 50 demonstration farms across the country.

The offer was in response to Buhari’s vow to make Nigeria self-sufficient in food production.

The offer, according to Shehu, was made during talks between Buhari’s delegation and high-ranking Chinese government officials led by Jinping.

During the talks, China and Nigeria also agreed to strengthen military and civil service exchanges as part of a larger capacity building engagement.

China has offered to help Nigeria in the area of education, it has offered to raise its schorlaship award from 100 to 700 Nigerian students, while 1,000 others would be given vocational and technical training  annually.

Shehu quoted Jinping as applauding the war against corruption being waged by Buhari and assured him that Nigeria would always have a special place in the affairs of China.

Buhari shortly after the talks directed that technical committees be immediately established to finalise discussions on new joint Nigeria/China rail, power, manufacturing, agricultural and solid mineral projects.

Nigeria also agreed a currency swap deal with China as it looks for ways to shore up the ailing naira and fund a record budget deficit, possibly by issuing -denominated bonds in China.

The nation is facing its worst economic crisis in decades as sinking oil prices eat into its foreign reserves and the naira weakens against other currencies.

The Industrial and Commercial Bank of China Limited, the World’s Biggest lender and the Central Bank of Nigeria signed a deal on transaction during Buhari’s visit to Beijing.

During Buhari’s visit to Beijing, the Industrial and Commercial Bank of China Limited, the world’s biggest lender, and the Central Bank of Nigeria signed a deal on yuan transactions.

This implies that the renminbi (yuan) is free to flow among different banks in Nigeria, and the renminbi has been included in the foreign exchange reserves of Nigeria,” the Director-General, African Affairs Department, China’s Foreign Ministry, Lin Songtian, told reporters.

The move comes after the Minister of Finance, Mrs. Kemi Adeosun, said on Saturday that Nigeria was looking at panda bonds or yuan-denominated bonds sold by overseas entities on the mainland, which she noted would be cheaper than Eurobonds.

 

 

 

Source: The Punch

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