Nigeria negotiates additional $4.5bn loan from China

The Federal Government of Nigeria is in talks with Peoples Republic of China over $4.5 billion loan to facilitate the production of agricultural machineries for large scale farming in selected states across the country.

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh said during a meeting with representative of China-Africa Machinery Corporation (CAMACO), in Abuja that the loan will also ensure some of the machineries are assembled in Nigeria rather than being directly imported from China.

Ogbeh explained that the China Development Bank (CDB) and China Export and Import Bank (EXIMBank) would fund CAMACO, in accordance with agreed terms with interested state governments, adding that the development was part of proceeds of President Muhammadu Buhari last visit to China.

He said the agriculture machineries will accelerate agricultural and agri-business development in the country with a loan repayment of 20 years.

State governors from Zamfara, Ebonyi, Kebbi and Jigawa had discussed the modalities of repayment with the investors during the inauguration of Project Management Committee at the minister’s office.

The minister discussed with the investors on possibilities of exporting agricultural produce to the China, as part of repayment method.

“The Chinese will give us a loan. We need things from them; we need to be clear on what we want. We need the right quality and quantity. So we are negotiating the interest rate and we are telling them you must assemble here with a view to producing these machines here when our steel industry when our steel industry comes alive,” Ogbeh said.

The technical committee is expected to establish a joint working group whose responsibilities shall include among others daily monitoring and tracking of activities at project sites and reporting same to the committee.

Ogbeh further revealed that there will be thorough assessment of any equipment or machineries that would be purchased with the fund to ensure that no sub-standard machine are imported into the nation.