Under the Buhari’s administration, Nigeria has secured $2.02bn as loans from China in six years.

This is according to data obtained from the Debt Management Office, which showed that Nigeria’s total debt from China as of June 30, 2015 stood at $1.38 billion. 

Meanwhile, as of March 31, the country’s debt portfolio from China had risen to $3.40 billion. 

According to the DMO, loans from China are concessional loans with interest rates of 2.50 per cent per annum, a tenor of 20 years and grace period (moratorium) of seven years. 

The debt office said that the terms of the loans were compliant with the provisions of Section 41 (1a) of the Fiscal Responsibility Act, 2007. 

However, the loans from China are tied to eleven projects. This include the Nigerian Railway Modernisation Project (Idu-Kaduna section), the Abuja Light Rail Project, Nigerian Four Airport Terminals Expansion Project (Abuja, Kano, Lagos and Port Harcourt), Nigerian Railway Modernisation Project (Lagos-Ibadan section) and the Rehabilitation and Upgrading of Abuja-Keffi-Makurdi Road Project. 

The DMO said the low interest rates on the loans reduced the interest cost to the government while the long tenor enabled the repayment of the principal sum of the loans over many years.