$3.7bn loan: China, Nigeria at crossroads on new facility
DESPITE a balance of $3.2 billion Chinese loan outstanding, China is willing to fund the bulk of the estimated $2.8 billion Nigeria’ gas pipeline project, whereas the country is seeking $1 billion from the Asian tiger so work can continue on the pipeline.https://071c9af10dcde93083d2fb28bf110333.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
However, Reuters reported that China has developed cold feet after they pledged to offer most of the funds, which Nigeria is sceptical about taking.
As of March 2021, Nigeria had borrowed $3.7 billion from China, out of which it had paid back about $500 million, leaving a balance of $3.2 billion.
It is the latest sign of falling Chinese financial support for infrastructure projects across Africa, after years of major Chinese lending for railway, energy and other projects.https://071c9af10dcde93083d2fb28bf110333.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
A spokesman for state oil company (NNPC), which is building the 614-km (384-mile) Ajaokuta-Kaduna-Kano (AKK) pipeline, said it was still negotiating with the Chinese lenders – Bank of China and Sinosure – to cover $1.8 billion of the project cost.
“There’s no cause for alarm,” the spokesman said, without saying whether NNPC was turning to other lenders.
But Reuters quoted three sources as having said that the company was now approaching others, including export-import institutions, to continue work on the pipeline that will run through the middle of the West African country to its northern economic hub, Kano.https://071c9af10dcde93083d2fb28bf110333.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Chinese lenders had originally been lined up to fund the bulk of the estimated $2.5 billion to $2.8 billion cost of the project, which is central to President Muhammadu Buhari’s plan to develop gas resources and boost development in northern Nigeria.
NNPC, which was funding 15 per cent, said last year it had used its own funds to start construction.
The sources said the Chinese lenders would not agree to disburse the cash NNPC had expected by the end of the summer, prompting it to turn to others.https://071c9af10dcde93083d2fb28bf110333.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
“They are looking at Nigeria as one loan, and right now, they feel they are too exposed,” one source said
Bank of China said it would not comment on specific deals. Sinosure did not respond to a request for comment.
According to Reuters, the Nigerian ministries of transport, finance and petroleum also did not reply to requests for comment.
Chinese bank lending to African infrastructure projects has fallen across the continent, from $11 billion in 2017 to $3.3 billion in 2020, a Baker McKenzie report said in April.https://071c9af10dcde93083d2fb28bf110333.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Analysts say with the continent facing an estimated annual $100 billion infrastructure investment deficit, the loss of Chinese funding leaves a big gap to fill.
Nigeria began building the AKK pipeline in June 2020, saying it would help generate 3.6 gigawatts of power and support gas-based industries along the route.
The project was to be funded under a debt-equity financing model, backed by sovereign guarantee and repaid through the pipeline transmission tariff.https://071c9af10dcde93083d2fb28bf110333.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
NNPC awarded engineering and construction work along three sections of the pipeline to Oando, OilServe, China First Highway Engineering Company, Brentex Petroleum Services and China Petroleum Pipeline Bureau.
Transportation Minister, Rotimi Amaechi said this month Nigeria was negotiating a mix of loans from Chinese and European lenders to fund railway projects, after media reports.
This was after reports Nigeria had initially planned to rely primarily on Chinese banks.
As of March 2021, Nigeria had borrowed $3.7 billion from China, out of which it had paid back about $500 million, leaving a balance of $3.2 billion.https://071c9af10dcde93083d2fb28bf110333.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
It is not only the AKK gas project that China has developed cold legs in funding.
It is also holding its funds from going to Nigerian ICT Infrastructure Backbone project phase 2.
The project in 2018 was to cost $2.3 billion, with China fully funding it.
But till now, no dime has been disbursed, three years after.
China loans only make up 10 per cent of Nigeria’s total indebtedness estimated at $32 billion by the Debt Management Agency.
The World Bank, IMF and development banks account for 54.7 per cent of the debt. Bilateral loans, including from China, are about 12.4 per cent.
Euro and Diaspora bonds are about 24 per cent.
Meanwhile, the Federal Government has lashed out at some Nigerians critical of the Buhari administration’s penchant for foreign loans, assuring that the government has not signed away the nation’s sovereignty in loan commitment to China.https://071c9af10dcde93083d2fb28bf110333.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Speaking in Abuja last week, Minister of Works and Housing, Mr Babatunde Fashola, said that the government has always budgeted for its counterpart funding for most of the contracts it has with China.
In spite of the huge investment in the water sector by the government and international organisations, water scarcity has grown to become a perennial nightmare for residents of Abeokuta, the Ogun State capital. This report x-rays the lives and experiences of residents in getting clean, potable and affordable water amidst the surge of COVID-19 cases in the state
The Lagos-Ibadan railway was inaugurated recently for a full paid operation by the Nigerian Railway Corporation after about a year of free test-run. Our reporter joined the train to and fro Lagos from Ibadan and tells his experience in this report…
Related articles
- More pension fund assets invested in banks —PenCom
- Nigerian banks at forefront of technology leverage —BAA Consult
- Customs men behind invasion of Ibarapa, killings, leaders allege
- Today, the destiny of Edo State will not be in the hands of politicians
- Born by Oyo parents at notorious Ikorodu garage, honoured by Ekiti icon: Story of Mary Adeyemo, ABUAD’s First Class Law graduate
- The more you sweat in peace, the less you bleed in war
- Mobile money guidelines: CBN warns against unnecessary charges, fees
- 13 policemen, two residents killed in Zamfara
- How leaders handle conflicts
- Families of Israeli filmmakers arrested in Nigeria say they made no contact with anti-government separatists
- Rates to moderate as DMO auctions N150bn worth of bonds
- RCCG outlaws aso ebi, ungodly wedding engagement
- Buhari has decimated Yoruba, other ethnic nationalities —VOR
- 100 million dollars value of Dbanj’s CREAM Platform confirmed
- Nigerians now hostile to Buhari, APC leaders ― Lukman, DG PGF
- Delta Set to complete Trans-Warri road, bridges After 13 Years
TODAY IN HOME
LATEST NEWS13 policemen, two residents killed in Zamfara
LATEST NEWSElectronic transmission of results: Telecom operators refute NASS…
WORLD NEWSFamilies of Israeli filmmakers arrested in Nigeria say they made no…
LATEST NEWSJUST IN: Bandits release one of abducted Baptist students on health…
TOP NEWSAlleged assault: CCT Chairman drags Senate, Lawan, AGF, others to…
Latest News
- Eid-el-Kabir: NSCDC deploys 2,500 personnel in Kaduna
- Eid-el-Kabir: Edo FRSC deploys 1,250 officers for…
- 13 policemen, two residents killed in Zamfara
- Eid-el Kabir: NSCDC deploys 1,750 personnel in Kano
- 2,000 farmers to benefit from 2021 crop demonstration…
Monday Lines
MONDAY LINESNigeria Customs of death
Our Front Page Today
Coronavirus Update
COVID-19: UNILAG shuts hostels indefinitely, returns to…
Panic in UNILAG as students in hostels contract COVID-19
Lagos records increasing cases of COVID-19, reactivates…
Osinbajo Harps On Reviving Economy In The Aftermath Of…
COVID-19: NCDC reports 29 new infections, one death
WHO says Africa faces steepest COVID-19 surge yet
VERITATEM With Obadiah Mailafia
VERITATEM WITH OBADIAH MAILAFIAJacob Zuma goes to jail
Festus Adedayo’s FLICKERS
FESTUS ADEDAYO’S FLICKERSLugard as Pastor Adefarasin’s Electoral Act devil
Metro
METROAgain, two dead, seven injured in Osun auto crash
Eid-el-kabir celebration: Police arrest notorious ‘one chance’…
Customs men behind invasion of Ibarapa, killings, leaders allege
We didn’t take over Bodija Eid ground, Oyo govt replies Islamic…
Business News
BUSINESS NEWSS.S Afemikhe Consulting rebrands after 36 years
NGX posts second weekly loss on cautious trading
CBN clears Dangote, two others to import sugar
My dream is to take vehicle repair service in Nigeria to global…
Saturday With Farooq Kperogi
NOTES FROM ATLANTA WITH FAROOQ KPEROGIWhy APC politicians are terrified by e-transmission of votes
Editorial
EDITORIALDemocracy at risk
Fire Service workers to carry arms?
Tribune Cartoon
TRIBUNE CARTOONGIANT IN THE TROPIC OF AFRICA: Folorunsho Alakija
Natural Health
NATURAL HEALTHHere are five underutilised vegetables that lower blood pressure, protect the…
‘High caffeine consumption could increase glaucoma risk if genetically…
Use of kola nut to suppress morning sickness can affect unborn baby’s…
Pea flour helps malnourished kids regain weight, restores intestine…
Your Life Counts
YOUR LIFE COUNTSRaising and reproducing leaders (V)
On The Lord’s Day
ON THE LORD’S DAYSouth-West governors and constitutional amendment…
VOICE OF COURAGE
VOICE OF COURAGEFG cannot use our resources to pay bandits —Yinka Odumakin
World
WORLD NEWSFamilies of Israeli filmmakers arrested in Nigeria say they made no contact with…
Alcohol use linked to over 740,000 cancer cases last year, new study…
Flood: 157 die in Germany, Belgium
Zuma hands self over to police, starts serving jail term
Education
EDUCATIONAuchi polytechnic inaugurates 110 capacity ICT centre
FG approves N15bn revitalization fund for polytechnics
New LASU governing council set to appoint VC for university, pledges…
Makinde administration has returned over 60,000 students to school ―…
Whatsapp Conversation
WHATSAPP CONVERSATIONShould vaccination be mandatory?
Auto Clinic
ASK THE DOCTORMy uncle’s kidney disease
Leadership & Management
LEADERSHIP & MANAGEMENTHow leaders handle conflicts
The making of charismatic leaders
Humility: The leader’s strength
Avoiding red ocean situation in business
Learned Expressions
LEARNED EXPRESSIONSJAMB and the battles against education (2)
Fact Check
FACT CHECKFederal Civil Service Commission not recruiting as claimed in viral WhatsApp…
No evidence Arab League sent warning message to FG on Biafra movement
Twitter did not ban Buhari as claimed in Trump’s viral statement
FACT CHECK: Did UNICEF say blocking children’s access to pornography…
SOS-Sam On Saturday
SOS-SAM ON SATURDAYElectronic transmission of votes: ‘Our husband has gone mad again’
Opinions
OPINIONSMakinde’s magic and Alaafin’s feedback
Of defection and politics without principles
PIB: Why Nigeria needs a single regulator
State of insecurity in Oyo State in retrospect
Letters
LETTERSNeed for delegation of duty to fight insecurity
On Gumi and school children abductions
Politics
POLITICSKwara APC: A ruling party in search of harmony
Regional agenda: NGF on trial?
Unending crises of APC, PDP in Ekiti
Electoral Act Bill: As opposition mounts against another legislative…
Interview
INTERVIEWLai Mohammed not adding value to APC in Kwara —Abubakar, APC chair
Gov Abdulrasaq ready to kill APC in Kwara —Oyebiyi, APC vice chair
Power rotation crisis capable of breaking Nigeria —Fawole
I want people to see what I can do differently —Sade Filani
Ask The Doctor
ASK THE DOCTORThe baby is mine
Shorter than my younger sister
Health
HEALTHNigeria can plan better with more budget allocated to family planning — SOGON
‘Six out of 10 eye specialists trained in OAUTH have migrated in 3…
Swollen red gums, warning sign of hypertension?
Blood on our hands: The huge cost of ignorance
Entertainment
ENTERTAINMENTModelling industry due for overhaul ― Walter, model
Kelly Bran talks on music career, plans for 2021
Midnight Crew to celebrate 20th anniversary with US tour
I want to become one of the greatest artistes in Africa — DChriz
Features
FEATURESSALLAH: Big money chasing small rams
Ogbomoso First Group raising the bar, giving back to society
Ladipo Market isn’t Sambisa Forest where military men can shoot, kill…
Man who strangled boss’ wife sentenced to death in Oyo
Xquisite
XQUISITEAs a child, I never had the opportunity to live my dream —Juliet Vincent-Obi,…
We need to take sports serious the way we take oil —Amarachi Uma,…
Men should give women space to do something about Nigeria —Amao DG,…
Children should learn to expose those who want to steal their…
Book Review
BOOK REVIEWHigh-altitude leadership: What the world’s most forbidding peaks teach us about…
Review of Thomas Wedell-Wedellsborg’s What’s Your Problem?
Review of Julie Zhuo’s The Making of a Manager
Wondrous World Of Women
WONDROUS WORLD OF WOMENWhy I take it upon myself to protect our unique identity
International Widows’ Day 2021: Ogun govt, Ajose Foundation empower…
Women are more vulnerable in all situations — Adenle Oluwole, founder…
FIDA Bauchi engages women in dialogue to uphold family valuesFacebookLikesLike our page529kFollowersFollow UsInstagramFollowersFollow UsYoutubeSubscribersSubscribeNext SectionNewsClassic versionPowered by
- Anike’s Diary
- Aplomb
- Ask The Doctor
- Autoclinic With The Mechanic
- Awo’s Thought
- Borderless
- Crucial Moment
- Empowered For Life
- Festus Adebayo’s Flickers
- Financewise
- Gibbers
- Intimacy
- Language & Style
- Leaders’ Forum
- Leadership & Management
- Lynx Eye
- Monday Lines
- Mum & Child
- Natural Health
- Notes from Atlanta with Farooq Kperogi
- On The Lord’s Day
- PENtagon
- Political Panorama
- Veritatem With Obadiah Mailafia
- Voice of Courage
- Whatsapp Conversation
- You and Eye
- Your Life Counts
- Business Coach
- Event Digest
- Crime & Court
- Do It Yourself
- Ecoscope
- Property & Environment
- Energy
- Maritime
- Aviation
- Brands & Marketing
- Agriculture
- Info Tech
- Labour
- Leadership & Management
- Achievers
- Arewa Live
- Arts & Culture
- Arts & Reviews
- Campus Beat
- Politics
- Health News
- Mum & Child
- Natural Health
- Sexuality & Health
- Special Report
- Sports
- Tourism
- Travelpulse & MICE
- Tribune Business
- Weekend Lagos
- Youth Speak
- Book Review
- Education
- Tribune Jobs
© 2021 – Tribune Online. All Rights Reserved.
1′ FILE PHOTO
13 policemen, two residents killed in Zamfara
•Six seriously wounded
LATEST NEWSTOP NEWSBy Muhammad Sabiu,
- DESPITE a balance of $3.2 billion Chinese loan outstanding, China is willing to fund the bulk of the estimated $2.8 billion Nigeria’ gas pipeline project, whereas the country is seeking $1 billion from the Asian tiger so work can continue on the pipeline.
However, Reuters reported that China has developed cold feet after they pledged to offer most of the funds, which Nigeria is sceptical about taking.
As of March 2021, Nigeria had borrowed $3.7 billion from China, out of which it had paid back about $500 million, leaving a balance of $3.2 billion.
It is the latest sign of falling Chinese financial support for infrastructure projects across Africa, after years of major Chinese lending for railway, energy and other projects.
A spokesman for state oil company (NNPC), which is building the 614-km (384-mile) Ajaokuta-Kaduna-Kano (AKK) pipeline, said it was still negotiating with the Chinese lenders – Bank of China and Sinosure – to cover $1.8 billion of the project cost.
“There’s no cause for alarm,” the spokesman said, without saying whether NNPC was turning to other lenders.
But Reuters quoted three sources as having said that the company was now approaching others, including export-import institutions, to continue work on the pipeline that will run through the middle of the West African country to its northern economic hub, Kano.
Chinese lenders had originally been lined up to fund the bulk of the estimated $2.5 billion to $2.8 billion cost of the project, which is central to President Muhammadu Buhari’s plan to develop gas resources and boost development in northern Nigeria.
NNPC, which was funding 15 per cent, said last year it had used its own funds to start construction.
The sources said the Chinese lenders would not agree to disburse the cash NNPC had expected by the end of the summer, prompting it to turn to others.
“They are looking at Nigeria as one loan, and right now, they feel they are too exposed,” one source said
Bank of China said it would not comment on specific deals. Sinosure did not respond to a request for comment.
According to Reuters, the Nigerian ministries of transport, finance and petroleum also did not reply to requests for comment.
Chinese bank lending to African infrastructure projects has fallen across the continent, from $11 billion in 2017 to $3.3 billion in 2020, a Baker McKenzie report said in April.
Analysts say with the continent facing an estimated annual $100 billion infrastructure investment deficit, the loss of Chinese funding leaves a big gap to fill.
Nigeria began building the AKK pipeline in June 2020, saying it would help generate 3.6 gigawatts of power and support gas-based industries along the route.
The project was to be funded under a debt-equity financing model, backed by sovereign guarantee and repaid through the pipeline transmission tariff.
NNPC awarded engineering and construction work along three sections of the pipeline to Oando, OilServe, China First Highway Engineering Company, Brentex Petroleum Services and China Petroleum Pipeline Bureau.
Transportation Minister, Rotimi Amaechi said this month Nigeria was negotiating a mix of loans from Chinese and European lenders to fund railway projects, after media reports.
This was after reports Nigeria had initially planned to rely primarily on Chinese banks.
As of March 2021, Nigeria had borrowed $3.7 billion from China, out of which it had paid back about $500 million, leaving a balance of $3.2 billion.
It is not only the AKK gas project that China has developed cold legs in funding.
It is also holding its funds from going to Nigerian ICT Infrastructure Backbone project phase 2.
The project in 2018 was to cost $2.3 billion, with China fully funding it.
But till now, no dime has been disbursed, three years after.
China loans only make up 10 per cent of Nigeria’s total indebtedness estimated at $32 billion by the Debt Management Agency.
The World Bank, IMF and development banks account for 54.7 per cent of the debt. Bilateral loans, including from China, are about 12.4 per cent.
Euro and Diaspora bonds are about 24 per cent.
Meanwhile, the Federal Government has lashed out at some Nigerians critical of the Buhari administration’s penchant for foreign loans, assuring that the government has not signed away the nation’s sovereignty in loan commitment to China.
Speaking in Abuja last week, Minister of Works and Housing, Mr Babatunde Fashola, said that the government has always budgeted for its counterpart funding for most of the contracts it has with China.
DISCLAIMER: All articles are solely the responsibility of the Authors and do not reflect the views of the Publisher of TOOLSBAG.XYZ