Nigeria’s oil sector has received a $70 billion Chinese boost; just months after the country got another pledge when the President Muhammadu Buhari visited China in April.
Beijing had initially offered President Buhari $40 billion, which was the deficit in the nation’s oil infrastructure budget.
The cash from China will be pumped into the Nigerian National Petroleum Corporation (NNPC).
“Hopefully by the end of the month when this 40-man team (Chinese) comes, we would be able to make substantial progress.”
In July, Nigeria’s highest decision making body, the Federal Executive Council (FEC), approved a debt management strategy for 2016 to 2019.
The strategy hinged on more external borrowing is expected to spur infrastructure development and private sector stimulation.
The country’s Finance minister, Kemi Adeosun said Nigeria needed to borrow at the most effective rate.
The government prefers external borrowing because of the cheaper interest rates and longer repayment periods. Such external borrowing would give more room for banks to lend to private sector, especially small and medium size enterprises.
She added that the administration also recognised the need to stimulate the private sector for it to grow with lending from the banks.
“If we do this, it would create foreign exchange earnings so that when these borrowings that are in dollars are mature for repayment, there would be dollar revenues to pay them.’’
The minister also explained that FEC also discussed how to make exports easier through reforms in the customs and other ministries.
Source: CCTV Africa