Follow CGSP on Social Media

Listen to the CGSP Podcast

Analyst: Nigeria on the Cusp of a Debt Crisis, But Loans From China Not to Blame

by Eric Olander

The Nigerian Debt Management Office on Monday revealed that it has $5.8 billion of borrowed money on its books that it hasn’t disbursed. This prompted new worries among some financial analysts that the actual debt-to-GDP ratio has surpassed 100%, meaning that the country has taken on so much debt that it now needs to borrow more just to service those loans.

But the $8.4 billion in project-tied concessional loans from China is not the problem, according to Nnamdi Nwizu, Co-Managing Partner at Commercio Partner in an interview on CNBC Africa yesterday. Those concessional loans from the Chinese and multilateral lenders are much better than costlier Eurobond debt, he added.

Lead the Conversation on China

Subscribe Today to Get Full Access to The China-Global South Project

Check Out Everything You'll Get With Your Subscription

The China-Global South Daily Brief delivered to your inbox at 6AM Washington time

Full access to exclusive news and analysis from editors based in the Global South

Transcripts of CGSP’s twice-weekly podcasts

Students and teachers with a valid .edu email address are eligible for a 50% discount off monthly or yearly subscriptions. Email us to receive a discount code.

You Might Like

First Moody’s Now the IMF, Warnings About Kenya’s Debt Levels Are Starting to Pile Up

The International Monetary Fund raised Kenya’s risk of debt distress to high from moderate in a statement on Tuesday because of the costly impact of the worsening COVID-19 crisis. The IMF said that even ...

With New Chinese Money Hard to Come By, Kenya’s Treasury Turns to the Bond Market to Finance Infrastructure

The Kenyan government is making preparations to float its largest-ever bond offering, a record $1.3 billion (Sh150 billion) issuance. It will be used to settle debts with contractors, possibly including some Chinese companies, ...

Kenya’s Struggles to Repay China Exim Bank Loan Hint at Wider Troubles

Kenya is struggling to make payments on a $156.7 million Chinese Exim Bank loan that financed Nairobi’s Southern Bypass road. The country’s auditor general, Nancy Gathungu says Kenya now owes the Chinese state bank ...

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.