The Federal Government has announced that China is willing to provide Nigeria with additional loans and invest in the country’s infrastructure development.
Minister of Foreign Affairs, Yusuf Tuggar, made the revelation during an appearance on Channels Television’s Sunday Politics program.
He explained that China is prepared to lend as well as invest more in Nigeria in terms of infrastructure development and other things.
This development comes despite Nigeria’s growing external debt, which stood at $42 billion (N56 trillion) as of March 2024, according to the Debt Management Office.
However, Tuggar assured that Nigeria’s debt-to-GDP ratio indicates the country is not among the critically indebted nations.
Recall that President Bola Tinubu recently advocated for international financial system reforms, including comprehensive debt relief measures, at the 79th United Nations General Assembly.
But Tuggar clarified that debt forgiveness is not currently being discussed with China, one of Nigeria’s top lenders.
Tuggar said, “No, that is not what we are discussing with China. And when it comes to the issue of debt, look at the debt-to-GDP ratio of Nigeria, we are not even among the critically indebted nations.
“When you talk about the debt of a developing country, Nigeria is not in that sort of precarious situation.
“As a matter of fact, China is prepared to lend more, China is prepared to invest more in Nigeria in terms of infrastructure development and other things,” he said.
Instead, China’s willingness to invest in Nigeria’s infrastructure is seen as a boost to the country’s economy.
Nigeria’s external debt has increased, reaching $42.1 billion in the first quarter of 2024, but Tuggar’s statement suggests the country is managing its debt sustainably.
The Federal Government’s engagement with China is expected to yield significant economic benefits for Nigeria.
