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China loans Nigeria $6 billion for infrastructure development

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Nigeria’s Foreign Affairs Minister Geoffrey Onyeama has revealed that China has granted Nigeria a $6 billion loan for infrastructural projects.
“It won’t need an agreement to be signed; it is just to identify the projects and we access it,” he said.

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Nigeria has been seeking to fund a projected N2.2 trillion ($11.1 billion) deficit in the 2016 Budget, as President Buhari plans to triple capital expenditure in the 2016 fiscal year.
The Central Bank of Nigeria CBN has said it plans to diversify its foreign exchange reserves away from the dollar by switching into yuan.
The CBN had converted up to one-tenth of Nigeria’s foreign reserves into yuan about five years ago.

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Nigeria equally agreed to enter into a currency swap agreement with China, this will make it easier to settle trade deals in yuan. In addition, both countries entered an agreement to develop infrastructure in Nigeria.

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President Buhari while speaking with Chinese investors and businessmen said both countries wanted to work together in agriculture, construction, fishing, manufacturing of cars, and textiles.

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