More headache for Nigeria as China reduces lending
China, Nigeria’s largest bilateral creditor, is rumoured to be reducing its loans in Africa in response to the continent’s deteriorating growth problems.Infomation Guide Nigeria
The choice of the Asian juggernaut comes against growing opposition from the west and especially from African nationals.
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Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to CanadaBloomberg reported on Monday that the rising global interest rates and dwindling liquidity considerations have already caused bonds of the riskiest African borrowers, such as Ghana and Zambia, and currencies, such as South Africa’s rand, to approach pandemic lows.
China is Nigeria’s largest creditor, and Nigeria’s debt is currently $3.9 billion, up 12.7% from $3.5 billion during the same period last year, according to figures from the Debt Management Office (DMO).
According to the Boston University Global Development Policy Center, from 2000 to 2020, Angola, Ethiopia, Zambia, Kenya, Egypt, Nigeria, Cameroon, South Africa, the Republic of Congo, and Ghana were the top 10 African governments to receive Chinese loans.
Bloomberg reports that JPMorgan Chase & Co. has identified Ethiopia as a country with a high repayment risk and a reserve depletion concern by the end of 2023.
Zambia, which is in default on its Eurobonds, and Ghana have asked the IMF for bailouts that could involve debt restructuring, while Egypt seeks a new loan, the IMF said.
China is Zambia’s largest creditor, accounting for about 75% of bilateral borrowings, and is co-chairing a committee negotiating a debt restructure after Zambia became Africa’s first sovereign defaulter in the modern era in 2020.
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Prior to assuming office last year, President Hakainde Hichilema had criticised the cost of Chinese projects. He has since built tighter ties with the United States, the United Kingdom, and other nations.
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Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to CanadaThe federal government of Nigeria is considering purchasing the recently certified Chinese C919 passenger plane, which is valued at about $99 million or N42 billion.Jamb Result
At the weekend’s triennial conference of the United Nations aviation agency in Montreal, Canada, the Minister of Aviation, Hadi Sirika, hinted at this.
In addition, he pledged that Nigeria Air, the country’s budding airline, will have approximately 30 aircraft by 2025.
Sirika told journalists, according to Reuters, that the new airline would feature a mix of Airbus (AIR.PA) and Boeing (BA.N) aircraft, but that the carrier would also consider the Chinese narrowbody jet, which Chinese regulators certified on Friday.
Sirika said, “China and Nigeria (have a) very cordial and friendly relationship with mutual benefits, we haven’t looked at that the new C919. But if it’s as good as the others, then why not,”
China hailed the construction of its first medium-haul passenger jet as the symbol of the country’s drive towards self-sufficiency on Friday, with safety permission granted to a plane that seeks to compete for orders with Western aviation giants.
According to Xinhua News Agency, the first C919 aircraft, meant to compete with Airbus and Boeing’s popular single-aisle models, will be delivered by the end of the year.
Uncertainty persists as to when the jet will be certified by the United States or Europe, paving the path for sales in the majority of foreign markets, but industry analysts estimate that it will be at least a decade before China can pose a credible challenge to Boeing and Airbus.
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