Amaechi: FG Has Paid $150m Out Of $500m Chinese Loan On Abuja-Kaduna Railway

Rotimi Amaechi, minister of transportation, says Nigeria has
commenced repayment of loans obtained from China.

The federal government has sought loan facilities from Chinese
lenders to implement several infrastructural projects, including
standard gauge rail lines.

According to the Debt Management Office (DMO), the total
borrowing by Nigeria from China stood at $3.12 billion as at March
31, 2020.

In an interview with Arise TV on Monday, Amaechi said Nigeria
has never defaulted on loans from foreign countries and
international lenders.

The minister said the administration of President Goodluck
Jonathan obtained $500 million from China but added that about $150
million had been repaid.

“What I am aware of is the fact that when you take the loan, you
are expected to pay back, and as I am talking today, we are paying
back,” he said.

“Under the regime of President Goodluck Jonathan, the loan for
Abuja-Kaduna (rail line) was taken at about $500 million. As we are
talking today, we have paid about $150 million on that loan, and
Nigeria has never defaulted when it comes to loan repayment. I
don’t also expect that we would default in any other loans that we
have taken.

“The loan for Ibadan-Kano (rail line) is about $1.5 billion, the
remaining $500 million came from our budget. I expect that whatever
loan we take, we will be able to repay.

Amaechi added that there is no clause in the loan agreement that
cedes assets of the federal government to China in the case of
repayment default.

“I am not aware of whatever clause in the loan agreement that
hands over any of our national assets to China.

“When you default, they may go to court and it depends on the
outcome of the court case but I am not aware that there is any
clause signed by this government or the previous government of
President Goodluck Jonathan that mortgaged any of our national
assets.”

Rotimi Amaechi, minister of transportation, says Nigeria has
commenced repayment of loans obtained from China.

The federal government has sought loan facilities from Chinese
lenders to implement several infrastructural projects, including
standard gauge rail lines.

According to the Debt Management Office (DMO), the total
borrowing by Nigeria from China stood at $3.12 billion as at March
31, 2020.

In an interview with Arise TV on Monday, Amaechi said Nigeria
has never defaulted on loans from foreign countries and
international lenders.

The minister said the administration of President Goodluck
Jonathan obtained $500 million from China but added that about $150
million had been repaid.

“What I am aware of is the fact that when you take the loan, you
are expected to pay back, and as I am talking today, we are paying
back,” he said.

“Under the regime of President Goodluck Jonathan, the loan for
Abuja-Kaduna (rail line) was taken at about $500 million. As we are
talking today, we have paid about $150 million on that loan, and
Nigeria has never defaulted when it comes to loan repayment. I
don’t also expect that we would default in any other loans that we
have taken.

“The loan for Ibadan-Kano (rail line) is about $1.5 billion, the
remaining $500 million came from our budget. I expect that whatever
loan we take, we will be able to repay.

Amaechi added that there is no clause in the loan agreement that
cedes assets of the federal government to China in the case of
repayment default.

“I am not aware of whatever clause in the loan agreement that
hands over any of our national assets to China.

“When you default, they may go to court and it depends on the
outcome of the court case but I am not aware that there is any
clause signed by this government or the previous government of
President Goodluck Jonathan that mortgaged any of our national
assets.”