JUST IN: China Rejects Nigeria's $22bn Loan Request

The House of Representatives has approved a counter request for a loan of $973,474,971.38 after the Federal Government’s request for a $22.7 billion loan from China Development Bank was rejected.

According to LEGIT.NG, the rejected loan was intended to fund the Nigerian Railway Modernisation Project’s Kaduna-Kano segment.Information Guide Nigeria

However, China Exim Bank withdrew its support due to concerns about Nigeria’s ability to repay the loan.

LEGIT.NG reports that the Chairman of the House Committee on Rules and Business, Abubakar Fulata proposed a motion to amend the legislative chamber’s previous resolution, which had granted approval for an unsuccessful loan deal.

The motion, titled ‘Rescission of the 2016-2018 Federal Government External Borrowing (Rolling) Plan,’ was based on the fact that the plan had already been approved by the Senate and the House of Representatives on March 5, 2020, and June 2, 2020, respectively.NYSC Portal

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Abubakar Fulata told the House that the National Assembly had approved $22,798,446,773 for the 2016-2018 Medium Term External Borrowing (Rolling) plan.

According to LEGIT.NG, she stated that the Federal Ministry of Finance had requested modifications to the financing proposal for the Nigerian Railway Modernisation Project due to the COVID-19 pandemic, which led to China Exim Bank withdrawing its support for the project.

Fulata mentioned that the contractor, CCECC Nigeria Limited, had collaborated with the Federal Ministry of Transportation to engage China Development Bank as the new financier for the project, with a loan amount of $973,474,971.38.

He played prayed the House to “rescind its decision on the financier and harmonized terms and approve the change of financier from China Exim Bank to China Development Bank.JAMB Result

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