China-Exim Bank Still Supports Nigeria’s Infrastructure Devt, Findings Show

Michael Olugbode in Abuja

Findings have shown that China-Exim Bank is still so much in the business of supporting Nigeria’s Infrastructural Development.

After verifying with the officer from Ministry of Finance and with the publications from Debt Management Office (DMO) website, it has been discovered that China Exim Bank has partnered with the Federal Government to complete most capital-intensive projects across the country and the bank always has good gesture of cooperation with the Federal Government.
 
There have been reports of concerns over China-Exim Bank’s reluctance to finance infrastructural projects in Nigeria in the past.
 
The government had requested to secure a loan of $973.54m from the China Development Bank and got approval from National Assembly. The loan was earmarked for the Nigeria Railway Modernisation Project, specifically for the Kaduna-Kano segment.
 
This project was part of a broader infrastructure development initiative that was designed to receive funding from various sources, including the World Bank, African Development Bank, Islamic Development Bank, China Exim Bank, and others. And the borrowing plan was approved by the National Assembly in 2020, with a total budget of $22.88bn.
 
This year, Nigeria’s Ministry of Finance, Budget, and National Planning initiated a change in the financing proposal, shifting it from China-Exim Bank to China Development Bank.
 
“This change was prompted by the unpredictable nature of securing loans, especially when faced with a global crisis like the COVID-19 pandemic. These decisions take into account a multitude of factors, such as economic conditions and risk management, in order to secure the most favourable terms for Nigeria.
 
“China Exim Bank has been a key partner in Nigeria’s infrastructure development journey.
 
“The Debt Management Office website lists a range of successfully completed or ongoing projects, including the Nigeria Railway Modernisation Project (Idu-Kaduna Section), Nigeria Railway Modernisation Project (Lagos-Ibadan Section), Abuja Light Rail Project, Nigeria ICT Infrastructure Backbone Project, Nigeria Four Airport Terminals Expansion Project, Nigerian Zungeru Hydroelectric Project, Nigerian Rehabilitation and Upgrading of Abuja-Keffi-Makurdi Road, Nigeria Greater Abuja Water Supply Project, Nigeria National ICT Infrastructure Backbone Phase II Project, E-Border Installation for Nigeria Immigration Service, Lafia Road Bypass, and Dualisation of Enugu-Makurdi Road, funded by China Exim Bank.”
 
And these projects could greatly enhance the quality of life in Nigeria and stimulate economic growth, provided they were managed effectively.
 
“It is imperative to recognise that the recent changes in financing arrangements are standard practices in response to evolving economic conditions and the pursuit of the best interests of both parties involved”.