China gives three conditions to listen to Nigeria over debt discussions

RIPPLES NIGERIA

Nigeria’s debt to China has increased by a staggering 209 percent under the administration of President Muhammadu Buhari, according to data obtained from the Debt Management Office (DMO).

As of December 2022, the country’s debt to China stood at $4.29 billion, up from $1.39 billion in June 2015, the office revealed.

The data analysis further revealed that China accounted for 84.73% of Nigeria’s bilateral debt, with the remainder coming from France, Japan, India, and Germany.

DMO also explained that China’s loans are concessional, with an interest rate of 2.50% per annum, a tenor of 20 years, and a grace period (moratorium) of seven years.

Meanwhile, China has expressed its readiness to listen to Nigeria, and other countries burdened with its debt amid pressure from the United States, International Monetary Fund and World Bank.

However, the giant Asian country has made several demands before a final decision can be reached.