Chinese Bank Declines Nigerian Government’s Request for $22 Billion Loan

The China-Exim Bank has rejected a loan request by the Federal Government of Nigeria, leading the House of Representatives to approve the request to borrow $973,474,971.38 from China Development Bank instead. The motion to amend the resolution granting approval for the failed loan deal was moved by Abubakar Fulata, Chairman of the House Committee on Rules and Business. The loan is for the Nigerian Railway Modernisation Project (Kaduna–Kano segment). The House also approved the conditions provided in the harmonised term sheet, including the financier, type of loan, maturity, currency, interest rate, commitment fee and upfront fee. Nicholas Ossai, Chairman of the House Committee on Treaties, Protocols and Agreements, commented that the Executive arm of the government failed to present details of Nigeria’s commercial agreements with other countries to the National Assembly. The Senate also approved the request to extend the implementation of the capital component of the 2022 Appropriation Act from March 31 to June 30, 2023.