DMO: Nigeria’s debt to China’s EXIM Bank hits $3.714b
- Pays $391.66m interest
- Repays $449.89 principal
- $1.267bn railway loan largest debt burden
Nigeria’s total debt to China contracted through China Export- Import (EXIM) Bank and drawn down stood at $3.714 billion as at December 31, 2020.
Debt Management Office (DMO) confirmed the figure on its website. About $449.89 million has been repaid from the principal and $391.66 million as interest with an outstanding of $3.264 billion.
The Nigerian Railway Mordernisation Project (Lagos – Ibadan section) loan of $1.267 billion, which was contracted on August 18, 2017, stood out as the single largest facility from the Chinese to the country.
It has 2.5 per cent interest rate and a grace period of seven years and a tenor of 20 years, thereby maturing in September 2037
About $884.27 million, representing 69.77 per cent, has been disbursed while $29.82 million has been paid back as interest.
The series of loans started with the Nigerian-Communications- Satellite, $200 million facility, which was signed on January 12, 2006, with three per cent and a grace period of five years.
That loan with a maturity date of June 29, 2018 has been fully repaid. Nigerian National Public Security Communication System project loan to the tune of $399.5 million with 2.5 per cent interest was taken in 2012. With a grace period of seven years and 20-year tenor, it will mature on September 21, 2030.
The entire $399.5 million was fully drawn down. Total payment of principal as at December 2020 was $92.19 million and interest of $89.04 million, leaving a total outstanding at $307.31 million.
The Nigerian Railway Mordernisation Project (Idu- Kaduna section) loan of $500 million was similarly contracted in 2010. With an interest rate of 2.5 per cent and seven years grace period, it will mature on September 21, 2030. It has been fully drawn down, with an outstanding payment of $384.62 million.
The Abuja Light Rail project loan of $ 500 million was contracted in 2012 with similar terms of 2.5 per cent interest rate, grace period of seven years and a tenor of 20 years. It had been fully drawn down.
Only $38.46 million and $ 66.78 million have been paid on principal and interest, leaving an outstanding of $461.54 million. There are four facilities, which have not been drawn down.
They include Nigerian 40 parboiled rice processing plants project ($325.67 million); Nigeria Supply of Rolling Stocks and Depot Equipment for Abuja Light Rail Project ($ 157 million); Nigeria Greater Abuja Water Supply Project ($381.09 million); and Nigerian Four Airport Terminal Expansion Project Ancillary Project, ($183.62 million).
Others are the additional loans for Nigerian four airport expansion project and Nigerian ICT infrastructure backbone project, ($208.90 million) and the Nigerian ICT infrastructure backbone Phase II project (CRY2.300 billion).