 |
| President Muhammadu buhari, & Chinese President, Xi Jinping shaking hands |
There were mixed reactions among the Nigerian public following the shocking news that the Chinese government has taken over Ugandan government's priced assets, notably its major airport over its failure to repay the loan of $207m it owed the Chinese Government.
The recent development sparked fears among Nigerians who expressed concerns over the nation’s mounting debts under the President Muhammadu Buhari government, saying the country might end up in a similar situation.
Although details of Nigeria's agreement with China is publicly not available, DMO data shows Nigeria is indebted to five countries worth over N1 trillion. As expected China accounts for the highest debt stock by countries and the debts were obtained through bi-lateral agreements.
As of the end of June 30, the Nigerian government owes N1.75 trillion ($4.25bn) to five countries out of which N1.43 trillion ($3.48bn) representing 81.98 percent are to China.
This is according to data obtained from the Debt Management Office (DMO) website the body in charge of debt statistics in the country.
The debts to countries were reached through various bilateral agreements with the countries' lending institutions.
According to DMO data, Nigeria has a total foreign debt stock of N13.71 trillion ($33.46 billion), which comprises money borrowed from countries and international organizations via promissory notes, Eurobonds, and diaspora bonds.
China through Exim Bank of China Nigeria owes $3.48 billion which is as earlier stated N1.43 trillion using an exchange rate of N412/$. While Nigeria borrowed from France through Agence Francaise Development the sum of $482.15 million (N197.62 billion).
Also Japan through Japan International Cooperation Agency $74.77 million (N30.64 billion) was borrowed. India through its Exim Bank of India loan to Nigerian $34.59 million (N14.17 bn) and Gemany it was through Kreditanstalt Fur Wiederaufbua $174.39 million(N71.48bn).
In terms of debt per capita which is calculated as the total public debt of a country divided by the country’s population, each Nigerian is currently owing China at least N7,000. The population figure used for the calculation is 200 million, as there is currently no official figure.