The Debt Management Office (DMO), yesterday, put Nigeria’s loan liability to China at $3.121billion as at March 31 2020, representing 3.94 per cent of the nation’s $79.3 billion debt portfolio. A statement made available to reporters stated: “The total borrowing from China as at March 31, 2020 is $3.121 billion. The concessional loans have an interest rate of 2.5 per cent for 20 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.

Source: The Guardian August 07, 2020 03:45 UTC