Nigeria Shops for $2billion Chinese Loan to Fund Budget

Nigeria is seeking a $2billion loan from China to fund the 2016 budget as the Finance Minister Kemi Adeosun, is set to travel to China next week to negotiate the loan to help fund the record budget spending, financial and government sources were on Wednesday, February 10, quoted by News Agency Reuters.

According to sources, Nigeria has discarded plans to meet investors about returning to commercial borrowing on the Eurobond market.

One Nigerian government official told Reuters that any loan agreed during Mrs Adeosun’s trip could be signed by President Muhammadu Buhari in Beijing next month.

“The finance minister, in the company of the Central Bank Governor Godwin Emefiele, is scheduled to be in China sometime next week to conclude negotiations on the $2 billion loan,” said the official, who asked not to be named.

The official acknowledged negotiations had been underway for some time and that the terms had yet to be agreed.

He however added: “Hopefully it may be sorted out during this meeting and the loan will be signed during President Buhari’s visit to China next month.”

 

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