NIGERIA’S DEBT PROFILE WITH CHINA 2006-2021
Keywords:
Nigeria-China relations, debt, economic sovereigntyAbstract
This study examines the dynamics of Nigeria-China debt relations between 2006 and 2021, focusing on the evolution, implications, and sustainability of Chinese loans to Nigeria. Over this period, China emerged as one of Nigeria's most significant bilateral creditors, providing concessional loans primarily for infrastructure development in sectors such as transportation, energy, and telecommunications. These loans were instrumental in bridging Nigeria’s critical infrastructure gaps and fostering economic growth. However, they also led to an increased debt burden, raising concerns about fiscal sustainability, debt servicing capacity, and economic sovereignty. The research adopts a time-series design to analyse trends in Nigeria’s external debt profile and incorporates both primary data from key informant interviews and secondary data from institutional sources. It identifies the processes, terms, and conditions of Chinese loans and evaluates their economic impact, transparency, and risks of dependency. Findings indicate that while Chinese loans have contributed significantly to Nigeria's infrastructure development, the growing debt servicing obligations, coupled with a lack of transparency and over-reliance on external financing, pose challenges to Nigeria's long-term financial stability. The study recommends diversified debt sources, enhanced transparency, and strengthened debt management frameworks to mitigate risks associated with Chinese loans. It underscores the need for policy strategies that balance the benefits of international financing with the imperatives of economic sovereignty and sustainable development.
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Published on: 06-03-2025
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