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Nigeria denies defaulting on Chinese loans

Nigeria’s Debt Management Office (DMO) has denied claims that the federal government defaulted in the payment of interest to China for loans.

Local media had reported that Nigeria accrued a penalty of US $90 million after its debt from China accumulated to US $240 million in the last two years.

The loans were reportedly taken to renovate some of the country’s railway lines.

In a statement on Wednesday, the DMO termed the reports false saying Nigeria was fully committed to honouring its debt obligations and had not defaulted on any of its debt service commitments.

“Nigeria remains unwaveringly committed to fulfilling its debt obligations in a responsible and timely manner,” the statement added.

It urged the public to ignore the reports.

As of December 2021, the DMO said, Nigeria’s debt to China stood at US $4.1 billion. It was, however, silent on the current status of the Chinese loans to Nigeria.

Nigeria has in recent years suffered revenue losses following a spate of attacks on rail tracks and the kidnap of train passengers that resulted in the stoppage of train services on some routes for a while.

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