Nigeria’s President Muhammadu Buhari Tuesday dismissed insinuations that infrastructure projects being funded by the Chinese government are a “debt trap”
Buhari is in China for the 2018 Beijing Summit of the Forum on Africa-China Cooperation, where he signed a new loan of $328m.
Critics have insinuated that the US $328 million loan is a debt trap and it is another way to jeopardise Nigeria economy. But Buhari said the loans were necessary for the infrastructural development
“Let me use this opportunity to address and dispel insinuations about a so-called Chinese ‘debt trap’,” Buhari said.
“I am happy to note that Nigeria’s partnership with China through #FOCAC has resulted in the execution of critical infrastructure projects valued at more than $5 billion, over the last three years,” he added.
The President, while clarifying his actions, stated some project that China through #FOCAC has funded and has been executed.
“We have completed and flagged off West Africa’s first urban rail system, valued at $500 million, in Abuja. Before then was the 180km rail line that connects Abuja and Kaduna, completed and commissioned in 2016, and running efficiently since then,” the President declared.
Buhari further assured Nigerians that are projects are self-liquidating and will in no time generate profits
“These vital infrastructure projects being funded are perfectly in line with Nigeria’s Economic Recovery & Growth Plan. Some of the debts, it must be noted, are self-liquidating.”