The President has dispelled suggestions about the Chinese loans being a debt trap.
President Buhari insisted that Nigeria would be able to repay the loans Nigeria is taking from the Chinese government.
“Our country is able to repay loans when due in keeping with our policy of fiscal prudence and sound housekeeping.”
This is even as he disclosed that Nigeria’s partnership with China through FOCAC has resulted in the execution of vital infrastructure projects across the country, valued at over $5 billion in the last three years under his watch
He stated this on Tuesday August 4th, in Beijing at the Forum on China-Africa Cooperation (FOCAC) round table meeting, attended by African leaders and Chinese President Xi Jinping.
President Buhari further stated;
“These vital infrastructure projects synchronise perfectly with our Economic Recovery and Growth Plan (ERGP). Some of the debts incurred are self-liquidating. Our country is able to repay loans when due in keeping with our policy of fiscal prudence and sound housekeeping.”
Buhari went further by saying that the country was also leveraging on Chinese funding to execute $3.4 billion worth of projects at various stages of completion.
The projects are the upgrading of airport terminals, the Lagos-Kano rail line, the Zungeru hydroelectric power project and fibre cables for our internet infrastructure.
He said with the support of the Chinese under FOCAC, Nigeria has been able to address significant challenges in the areas of infrastructure, human capacity development, power, transport, agriculture and humanitarian assistance.
“For Nigeria, our partnership with China through the FOCAC platform has resulted in the construction of the first urban rail system in West Africa. This $500 million project in Abuja was commissioned in July this year,” he stated.
The president noted that the support has also led to the construction and operation of the first rail system in Africa that uses modern Chinese standards and technology.
According to him, “this 180km rail line that connects Abuja and Kaduna was commissioned two years ago at a cost of $500 million. Today, the rail line is functioning efficiently with no issues, a sign that Chinese technology is world-class.
“Nigeria is leveraging Chinese funding to execute $3.4 billion worth of projects at various stages of completion. These include the upgrading of airport terminals, the Lagos-Kano rail line, the Zungeru hydroelectric power project and fibre cables for our internet infrastructure.
“Furthermore, less than three months ago, Nigeria signed an additional $1 billion loan from China for additional rolling stock for the newly constructed rail lines as well as road rehabilitation and water supply projects.”
According to him, the aforementioned projects demonstrate the Chinese government’s high level of consistency and commitment in boosting its relations with African countries under the umbrella of FOCAC.
“I am optimistic that this summit will offer new opportunities that would build on these past achievements,” he said, adding that, ‘’Nigeria will continue to support the FOCAC initiative and also seek to key into the Belt and Road Initiative as an additional Chinese mechanism to build further cooperation in our quest for infrastructural and economic development.”