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As Nigeria’s Debt Steadily Grows, China’s Share Shrinks — Yet Somehow Lots of People Still Worried About “Debt Traps”

by Eric Olander

Nigeria’s Debt Management Office (DMO) announced late last week that the country’s external debts will increase to $83 billion due to $2.5 billion of new loans provided by the World Bank and the Export-Import Bank of Brazil to help mitigate the effects of the ongoing COVID-19 pandemic.

With just $3.71 billion in outstanding loans, according to the DMO, China’s share of Nigeria’s debt is getting smaller at around 4%. Yet, it would be easy to assume that China accounts for much more of the debt based on widespread misperceptions shared on social media, in the national media, and disseminated by various members in the House of Representatives.

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