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Abuja Says it has not Defaulted 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. 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. Local media had reported that Nigeria accrued a penalty of $90m (£81m) after its debt from China accumulated to $240m in the last two years. The loans were reportedly taken to renovate some of the country’s railway lines. As of December 2021, the DMO said, Nigeria’s debt to China stood at $4.1bn. It was, however, silent on the current status of the Chinese loans to Nigeria..

SOURCE: BBC