Posted by News Express | 2 May 2021 | 445 times
By SANYA ADEJOKUN, Abuja
The Debt Management Office (DMO) had put Nigeria’s total loan obligations to China at $3.714 billion by the end of 2020.
According to a document obtained from the debt agency, $449.89 million has been repaid from the principal and $391.66 million, as interest, with an outstanding of $3.264 billion to the China Export/Import Bank.
The Nigerian Railway Modernisation 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 a 2.5 per cent interest rate and a grace period of seven years and a tenor of 20 years, thereby maturing in September 2037.
Of this amount, $884.27 million, representing 69.77 per cent has been disbursed while $29.82 million interest has been paid.
The series of loans started with the Nigerian-Communications-
The NICOMSAT loan with a maturity date of June 29, 2018, has been fully repaid.
The country also took a $399.5 million loan in 2012 for the National Public Security Communication System Project with 2.5 per cent interest.
This has a grace period of seven years and 20-year tenor and will mature on September 21, 2030.
The entire $399.5 million was fully drawn down and the total payment of principal as of December 2020 was $92.19 million and interest of $89.04 million, leaving a total outstanding at $307.31 million.
The Nigerian Railway Modernisation Project (Idu- Kaduna section) loan of $500 million was similarly contracted that 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, a 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.
The document revealed that four facilities have not been drawn down.
These four include the $325.67 million 40 Parboiled Rice Processing Plants Project; and the $157 million Nigeria Supply of Rolling Stocks and Depot Equipment for Abuja Light Rail Project.
There are additional loans for the Nigerian Four Airport Expansion Project and the Nigerian ICT Infrastructure Backbone Project valued at $208.90 million; and the ICT Infrastructure Backbone Phase II Project of CRY2.300 billion.
It should be noted that two of the projects- Security Communication and Abuja Light Rail have been in comatose even as interests and service fees were being paid. (Sunday Tribune)
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