FG Seeks $6bn from China Exim Bank to Construct Ibadan-Kano Rail Line

DMO: No cause for alarm over Chinese loans

The federal government has disclosed that it is currently negotiating a loan of about $6 billion with the China Exim Bank for the construction of the Ibadan-Kano rail line project.

This is coming as the Debt Management Office (DMO) has allayed fears over Nigeria’s continuing borrowing from China, assuring that the country’s public debt is being managed under statutory provisions and international best practice.

The Minister of Transportation, Mr. Chibuike Rotimi Amaechi, gave the hint during an interactive session with journalists in Abuja yesterday.

According to him, “We are currently in negotiations with the China Exim Bank to get about $6 billion to do (rail lines) from Ibadan to Kano.”

Meanwhile, the Debt Management Office ( DMO) has allayed fears over Nigeria’s continuing borrowing from China, assuring that the country’s public debt is being managed under statutory provisions and international best practice.

The agency assured the public that Nigeria’s public debt remains sustainable, and devoid of any risk of default because of the country’s sound debt management practices.

In a statement, the DMO said it has observed various comments in recent times about borrowing by developing countries from China.

The comments, it said, seem to have become heightened following the recent summit of the Forum on China-Africa Cooperation and claims of potential seizure of national assets by Chinese lenders in some African countries although the claims have not been validated.

“The DMO has therefore considered it necessary to inform Nigerians about the Government’s borrowing from China. Firstly, it should be noted that based on need, and subject to the receipt of requisite approvals, the government may raise capital from several domestic and external sources to finance capital projects, in order to promote economic growth and development, as well as, job creation.