Nigerian Debt Rises to ₦28.6 trillion The recent street uproar about rising profile of Nigeria’s indebtedness which has started building since 2015 has attracted reactions from DMO. Nigerian indebtedness increased to ₦28.6 trillion in the first half of 2020. The Nigeria’s indebtedness to the Chinese at as first quarter of 2020 settled at ₦1.1 trillion or ($3.1 trillion).
DMO put the nation’s exposure to the Chinese at $3.1 billion, which after conversion at the Central Bank of Nigeria’s official foreign exchange rate translates to ₦1.1 trillion.
In its recent macroeconomic tagged understanding Nigeria’s indebtedness to China, Afrinvest, an investment banking firm headquartered in Lagos, said China’s loan accounts for 11.3% of Nigeria’s external indebtedness.
Afrinvest stated that there is concern about who truly benefits from China’s infrastructure investments in developing economies through direct loans.
Especially, given stringent conditions that could mean handing over sovereign assets to the country in the event of a default.
DMO however noted that loan terms were properly reviewed before signing and that repayments are fully provided for in annual budgets while the projects either generate revenues or have revenue generating potentials.