The International Monetary Fund (IMF) has issued a warning to Nigeria and other Sub-Saharan African countries about the potential risks associated with strong economic relationships with China. This cautionary note suggests that these nations should carefully consider the implications and potential vulnerabilities that may arise from such close economic ties with China.
The IMF’s caution regarding close economic ties with China comes at a time when reports indicate that Nigeria’s debt to China has risen to $4.73 billio3n as of June 30, 2023. This marks an increase of $800 million in a span of one year, with the debt standing at $3.93 billion as of June 30, 2022. These figures, as reported by Nigeria’s Debt Management Office (DMO), highlight the growing financial connection between Nigeria and China.
The International Monetary Fund (IMF) has issued a warning to Nigeria and other Sub-Saharan African countries regarding the potential risks associated with close economic ties with China. This cautionary advice comes in light of reports that Nigeria’s debt to China has increased to $4.73 billion as of June 30, 2023. Data from Nigeria’s Debt Management Office (DMO) reveals an $800 million rise in debt over the course of one year, from $3.93 billion on June 30, 2022, to $4.73 billion on June 30, 2023.
Get Instantly Update By: Joining Our Whatapps and Telegram Channel
This debt primarily consists of concessionary loans acquired by the Nigerian government to fund various infrastructural projects, including those related to power generation, railways, water supply, airport terminals, agricultural processing, and communication. Some of the notable projects being financed by Chinese loans include the Nigerian National Public Security Communication System project, railway modernization projects, light rail projects, and hydroelectric power projects, among others. The first Chinese loan, initially agreed upon in 2006 to finance the Nigerian Communications Satellite project, has been fully repaid by the Federal Government, along with an additional $40.02 million in interest.