FG to Sign a Loan Deal With China

President Muhammadu Buhari is expected to sign a loan deal with China during his visit next week as Federal Government seeks funds to bridge the N2.2tn fiscal deficit in the 2016 budget.

Speaking to Reuters, the Special Adviser to the President on Media, Mr. Femi Adesina, said, “I can’t tell you how much until the day the loan will be signed. Both countries will also be signing some bilateral agreements to strengthen their relationship; that is all I can say now.”

The economy has been hit hard by a slump in oil prices and the Federal Government reluctant to devalue Nigeria’s naira to accommodate current economy situation of the nation.

A financial source said the Federal Government has been in talks with China’s Export Import Bank for a loan to fund Chinese firms’ infrastructure projects in Nigeria.

The Federal Government has said it wants to raise about $5bn abroad to cover part of its 2016 budget deficit, which could be as high as N3tn ($15bn).