The African Development Bank, AfDB, says it sees nothing wrong in developing countries like Nigeria, taking Chinese loans provided the monies are rightly used.
It also wants African economies to be more involved in global trade.
The International Monetary Fund, at its spring meetings earlier this year, advised emerging markets like Nigeria to be cautious in taking loans from China.
It expects them to be especially careful of their loan conditions and ensure they conform to Paris club arrangements.
The African Development Bank on its part feels Chinese loans should be beneficial to receiving economies.
Its Chief economist reasons that projections of China becoming the world’s biggest economy makes it a relevant economy to have ties with.
The development finance institution also tells African economies like Nigeria to be more involved in the global value chain through international trade.
Nigeria recently signed the African Continental Free Trade Area agreement and the bank anticipates this will advance Nigeria’s economic integration with the rest of the continent.
The Nigerian government justifies collection of Chinese loans on its being a cheaper source of finance and also a diversified source of borrowed funds.
