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$3.48Bn Loan: Nigeria Risks Losing Assets to China – Experts

Economic and financial experts have warned the Federal Government that Nigeria risks losing key national assets to China in the event that it defaults in paying back loans obtained from China which is currently put at $3.48bn.
According to a report by Punch, the experts spoke against the backdrop of the possible takeover of Uganda’s only international airport and other key assets over the East African country’s inability to repay a $207m loan obtained on November 17, 2015 from the Export-Import Bank of China.
The loan has a maturity period of 20 years including a seven-year grace period.
According to the deal signed with the Chinese lenders, Uganda will have to surrender its only international airport.
The Uganda Civil Aviation Authority said some provisions of the financing agreement with China exposed the Entebbe International Airport and other Ugandan assets which might be taken over by Chinese lenders upon arbitration in Beijing.
China has reportedly rejected recent pleas by Uganda to renegotiate the toxic clauses of the 2015 loan.
This came as Rotimi Amaechi, minister of Transportation, in August 2020 hinted about the possibility of Nigeria forfeiting its assets to China in the event of loan default.
Amaechi reportedly said Nigeria had waived immunity on a loan, which means China could take the country to arbitration in the event of a default.
The minister, however, added that there would be no need for China to claim any infrastructure once Nigeria repaid its loans to the Asian country.
“We must learn to pay our debts and we are paying, and once you are paying, nobody will come and take any of your assets,” Amaechi said.
However, financial analysts hinted about the possibility of Nigeria forfeiting key national assets to China if the country defaulted on its $3.48bn loans.
They also advised the Federal Government to properly review the loan agreements with China to save the country from facing a situation similar to that of Uganda.
Idakolo Gbolade, chief executive officer of SD&D Capital Management, said Nigeria might forfeit certain assets in the event of a loan default.
Asked if Nigeria faced any risks on its China loans, Gbolade said, “Yes, it is very possible. If you remember about a year ago, there was serious concern in the National Assembly on the loans given by the Chinese Exim Bank to us, and I am sure the loan clause also includes forfeiture of national assets.”
The expert, however, expressed confidence that Nigeria was capable of paying back its debt.
Akpan Ekpo, economist and professor of Economics and Public Policy at the University of Uyo, said the development in Uganda was worrisome and exemplified some of the dangers of borrowing from external sources.
He, therefore, advised the government to ensure that loan agreements with China were properly appraised.
Ekpo said, “It is an issue of concern; that is why in any loan agreement with China, we have to read in between the lines. We have to make sure we really understand their agreements.
“We should make sure that Nigerians are involved in the loan negotiation process. Experts should be carried along so that they can properly understand both the agreement in English and in Chinese.
“If the loans have clauses that may cost us our assets or even our sovereignty – as the debate was earlier in the year – that would be disastrous.
“So they should take experts with them when they go to negotiate the loans they collect from China, not just people from foreign affairs.”
Sheriffdeen Tella, professor of Economics at the Olabisi Onabanjo University, Ogun State, equally expressed a similar view, stressing that all loan agreements between Nigeria and external sources should be properly studied by experts.
He said, “It could happen to any African country because they are all thinking of borrowing. But I think that since people have kept the conversation alive now, the government will be very careful with loans collected from China.
“There is, however, the need for an assessment of government external debt from different sources now. We have to start looking at it and there is a need to study the documents that contain the agreements of some of these loans to prevent a similar occurrence.
“We need to start asking ‘what are the contents or the conditions of the loans?’ There is also a need for the government to create a means for offsetting such debts.”
Johnson Chukwu, managing director of Cowry Asset Management Limited, said the country should not have a problem paying back the loan if the economy thrived sufficiently.
He said, “An interest of 2.5 per cent is not high. The key challenge is that did we invest the money in productive assets, and are we getting the value for the money? Was the project cost-optimal?
“It is important to note that investment in infrastructure should lead to an expansion in the country’s ability to generate revenue. If the economy thrives, paying back the loan should not be a problem.
“However, if certain reasonable conditions are not met, it may have a catalytic effect on the economy with the country finding it difficult to pay back the loan.”
Although the Federal Government has been mostly secretive about the terms of the agreement of its China loans, the Debt Management Office has made some statements on them in recent times.
In a statement in June, 2020, the DMO said, “The total borrowings from China of $3.121bn as at March 31, 2020, are concessional loans with interest rates of 2.5 per cent per annum, tenor of 20 years and grace period (moratorium) of seven years.”
According to the DMO, the terms are compliant with the provisions of Section 41 (1a) of the Fiscal Responsibility Act, 2007.
In addition, the low interest rate reduces the interest cost to government while the long tenor enables the repayment of the principal sum of the loans over many years.
Eleven projects, ranging from water supply, power generation, railways, airport terminals, communication to agricultural processing are funded by the loans acquired.
Patience Oniha, director-general, DMO, had in February said, “So far, let’s be very clear that there has not been any default, whether of local or international debt.”
The earliest of the funding agreements between Nigeria and China was signed in 2010 with an interest rate of 2.5 per cent yearly, a repayment period of about 20 years and a grace period of seven years.
If Nigeria is unable to pay its first debt by 2038, the country may have to lease out any of the Chinese-funded projects in Nigeria to China.
The first loan project was for the Nigerian national public security communication system project with $399.50m agreed on December 20, 2010 and disbursed.
The second loan was for the Nigerian railway modernisation project (Wu- Kaduna section) with $500m agreed on December 20, 2010 and disbursed.
While the third loan was for the Abuja light rail project with $500m agreed on November 7, 2012 and disbursed, the fourth loan was targeted at Nigerian ICT infrastructure backbone project with $100m agreed on January 5, 2013 and disbursed.
The fifth loan was meant for the Nigerian four airport terminals’ expansion project (Abuja, Kano, Lagos and Port Harcourt) with $500m agreed on July 10, 2013 but $455.28m was disbursed, which is 91.06 per cent of the agreed amount.
The sixth loan was for the Nigerian Zungeru hydroelectric power project with $984.32m agreed on September 28, 2013 but only $518.24m was disbursed, which is 52.65 per cent of the agreed amount.
The seventh loan was for the Nigerian 40 parboiled rice processing plants project (Federal Ministry of Agriculture and Rural Development), with $325.67m agreed on April 26, 2016, but nothing was disbursed.
The eighth loan was for the Nigerian railway modernisation project (Lagos – Ibadan section), with $1.27bn agreed on August 18, 2017 but only $759.84m was disbursed, which is 17.50 per cent of the agreed amount.
The ninth loan was targeted at the rehabilitation and upgrading of Abuja-Keffi-Markurdi road project with $460.82m agreed on August 18, 2017 but only $80.64m was disbursed, which is 59.96 per cent of the amount agreed.
The 10th loan was meant for the Nigeria supply of rolling stocks and depot equipment for the Abuja light rail project with $157m agreed on May 29, 2018, but nothing was disbursed.
Lastly, the 11th loan was for the Nigeria greater Abuja water supply project with $381.09m agreed on May 29, 2018, but nothing was disbursed.
In terms of repayments, Nigeria paid $102.68m to China in the first six month of 2021, while it still owes about $3.48bn
Nigeria also paid a total of $102.68m to the Exim Bank of China in the first half of this year.
Nigeria paid an interest fee of $42.54m, which is 73.76 per cent of the principal fee of $57.67m as debt service to the Exim Bank of China in the first three months of 2021
Alongside commitment charges of $1.98m, Nigeria paid a total of $102.20m.
In the second quarter of 2021, Nigeria paid an interest fee of $306,050, without paying the principal fee, as debt service to the Exim Bank of China in the second three months of 2021
Alongside commitment charges of $170,680, Nigeria paid a total of $476,730 in Q2 2021.
According to Punch reports, Nigeria has spent about $591.11m in five years on servicing the debts owed to the Exim Bank of China.
Nevertheless, Nigeria still owes China $3.48bn as of the end of June 2021.
Punch
News
Experts Urge MSMEs to Build Strong Partnerships in Solving Problems,

For a business to remain strong and relevant, experts have urged entrepreneurs to engage in solving problems in the Micro, Small, Medium Enterprises (MSMEs) space and build strong partnerships.
The experts stated at the United Bank for Africa (UBA) Business Series with the theme, “Stronger Together: Building Powerful Business Partnerships for Progress.”
Four seasoned business owners including: Beauty Entrepreneur, Dabota Lawson; Real Estate Mogul and Entrepreneur, Wale Ayilara; Journalist and TV producer Peace Hyde and Fashion Entrepreneur, Mai Atafo, encouraged participants to solve problems, invent in products & service and, create value to remain stronger in business and thrive amid competitive business environment.
Ayilara expressed that an entrepreneur must be able to solve problems and build a strong partnership in order to remain relevant in a challenging business environment.
He stressed further that there are a lot of business opportunities in Nigeria and questioned where consumers money is directed into.
Lawson said the inability to find a suitable sensitive skincare that matches her skin tone forced her to start her company.
On her part, Hyde stated that she ventures into media on the backdrop of telling Africa’s stories to international audiences.
Atafo said passion made him venture into fashion, maintaining that being an entrepreneur in Nigeria is tough work.
Speaking earlier, UBA’s Group Head, Retail and Digital Banking, Shamsideen Fashola, highlighted the critical role of partnerships in today’s dynamic business environment.
“In an increasingly interconnected world, the power of collaboration cannot be overstated. At UBA, we recognise that collaboration is the cornerstone of sustainable business success.
“The ‘Stronger Together’ Business Series is designed to inspire entrepreneurs and corporate leaders to forge meaningful alliances that drive progress, unlock opportunities, and contribute to Africa’s economic transformation,” Shamsideen said.
News
FirstBank, NLNG, Shell back QEDNG Creative Powerhouse Summit

Nigeria’s leading commercial bank, First Bank of Nigeria, has joined forces with Mighty Media Plus Network Limited for the maiden edition of the QEDNG Creative Powerhouse Summit.
Also supporting the event are Nigeria LNG (NLNG) and Shell Nigeria, two major players in the country’s energy and development sectors.
Chief Executive Officer of Mighty Media Plus Network Limited, Olumide Iyanda, announced the partnerships in a statement on Monday.
Mr Iyanda described FirstBank’s involvement as a strong statement of the bank’s belief in the power of Nigeria’s creative sector.
“FirstBank’s support is a reaffirmation of its long-standing commitment to promoting the creative economy,” he said. “Through First@arts, the bank has become a reliable partner to talents, institutions, and organisations working to grow Nigeria’s cultural assets.”
First@arts is FirstBank’s platform for supporting the arts. It provides financing, advisory services, and exposure for creatives across the value chain. The bank has backed major cultural events and partnered with institutions such as British Council, Duke of Shomolu Productions, Live Theatre Lagos, Freedom Park and Terra Kulture.
Among the projects FirstBank has supported are The Headies Awards, Lagos International Theatre Festival, The Oxymoron of Kenny Blaq, Kurunmi, Eni Ogun, and Oke Langbodo.
Iyanda also praised NLNG for its role in promoting excellence in literature and science through The Nigeria Prize for Literature, The Nigeria Prize for Science, and The Nigeria Prize for Literary Criticism.
“NLNG has shown leadership by rewarding creativity and innovation in ways that impact both the literary and scientific communities,” he said.
The prizes, worth up to USD100,000, are among the most prestigious on the continent. They celebrate Nigerian authors, critics, and scientists whose work makes a real difference.
Shell’s support for the summit reflects its ongoing commitment to education and social development. The company focuses on sustainable, community-driven educational projects, ranging from scholarships to infrastructure development and ICT donations.
“Shell’s belief in education as a foundation for long-term progress aligns with our vision for the summit,” Iyanda added.
He further noted that more sponsors will be unveiled in the coming weeks.
The QEDNG Creative Powerhouse Summit, themed “Financing as Catalyst for a Thriving Creative Economy,” will take place on Tuesday, August 12, 2025, at 10:00 a.m. The venue is the prestigious Radisson Blu Hotel, Isaac John Street, Ikeja GRA, Lagos.
The summit will bring together creatives, investors, policymakers, and business leaders to explore solutions to the funding challenges facing Nigeria’s creative industries.
News
EFCC: Accusations Against Our Chairman Are Baseless and Misleading

Economic and Financial Crimes Commission (EFCC) has strongly denied allegations of lack of integrity and transparency directed at its chairman, Ola Olukoyede, by columnist Steve Osuji.
In a statement issued by Dele Oyewale, spokesperson, EFCC. the commission described the claims as “worrisome and unjustifiable,” particularly criticizing the personal attacks on Olukoyede.
“More worrisome was his attack on Olukoyede for no justifiable reason. Allegations of lack of transparency, accountability and integrity deficit are wild and clearly off the mark,” Oyewale said.
He questioned the basis for the allegations and defended Olukoyede’s leadership since taking office.
“The question is: in what way has Olukoyede fallen short? Is it by insisting that the right things should always be done? By moving the nation’s anti-graft war forward radically and unprecedentedly?
“By bringing forth a preventive framework to tackle corruption and reaping bountiful gains for the nation?
“By recovering the globally-acclaimed 753 duplexes and other apartments, which are proceeds of fraudulent dealings for the nation?
“By launching the EFCC into a global map of accomplished anti-graft agencies? By handling 50,000 case files in one year?
“By embarking on a courageous internal cleansing system and other progressive initiatives to deepen and strengthen the anti-corruption fight?
“It is cowardly and uncharitable for any columnist to hide under vague and opaque cover to splash mud on Ola Olukoyede, arguably one of the finest breed of anti-graft czars around the world.”
Olukoyede, through the statement, reaffirmed that the EFCC has consistently submitted its annual reports to the National Assembly as required by law.
“Equally preposterous are claims of re-looting of assets by officers of the Commission. For the purpose of clarification, the Commission does not recover monetary assets into its covers and the non-monetary assets that are recovered are disposed of following clear pronouncements by court and proceeds paid into the Confiscated and Forfeited Properties Account account in the Central Bank in line with provisions of the Proceeds of Crime (Recovery and Management) Act, 2022.
“The EFCC does not operate in secrecy. All its operations are regularly communicated to the public, including public auction of assets. To deliberately cast the Commission in the mould of fraudulent engagements or criminality is not only mischievous but also untenable,” the statement concluded.
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