Nigeria’s debt to China up nearly 184% in 4 years
By Jeph Ajobaju, Chief Copy Editor
Imports from China rose 183.91 per cent from N530.98 billion in the first quarter ended March 2018 (Q1 2018) to N1.51 trillion in Q1 2022 but exports from Nigeria to the Asia country was negligible in five quarters picked out of the four years.
Borrowing from China also increased 89.94 per cent to $3.67 billion between 2018 and 2022, making it Nigeria’s largest bilateral lender.
The Debt Management Office (DMO) says about $3.12 billion of Chinese loans are tied to projects which include the modernisation of the Nigerian Railway Corporation, Abuja Light Rail, terminal expansion in the four airports in Abuja, Kano, Lagos, and Port Harcourt.
National Bureau of Statistics (NBS) data on foreign trade shows that accounts China for most imports in the five quarters – from Q1 2018 to Q1 2020 and in Q1 2022 – and was number one in the top 10 countries.
But China was missing from the top 10 export destinations in the five quarters. China only ranked third in Q1 2021 with N190.11 billion but Nigeria imported its goods worth N2.01 trillion in the quarter.
Imports from China grew across the five quarters.
- Q1 2018 – N530.98 billion
- Q1 2019 – N979.29 billion
- Q1 2020 – N1.11 trillion
- Q1 2021 – N2.01 trillion
- Q1 2022 – N1.51 trillion
Imports from China included motorcycles, machines for reception of voice, electrical apparatus for line telephony, or line telegraphy, mackerel, parts of machinery for working on rubber or plastics, crude salt, compressed salt used in animal feeding, antibiotics, herbicides and more.
Exports to China included polyethylene, leather, sesamum seeds, cashew nuts, zinc ores and concentrates, lead ores, and concentrates.
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Overall surplus as the bottom line
China’s percentage of total imports:
- Q1 2018 – N2.52 trillion (21.1 per cent)
- Q1 2019 – N3.70 trillion (26.4 per cent)
- Q1 2020 – N4.22 trillion (26.28 per cent)
- Q1 2021 – N6.85 trillion (29.34 per cent)
- Q1 2022 – N5.90 trillion (25.55 per cent)
Ede Dafinone, Manufacturers Association of Nigeria Export Group Chairman and Sapele Integrated Industries Vice Chairman, stressed that the bottom line is overall surplus, reporting by The PUNCH.
“There is no guarantee or requirement for any country to import and export the same volume from each other.
“If Nigeria is exporting a certain quantity worth of goods and services and importing another quantity of goods and services from another country, the issue is what is the next difference with net import and export,” he said.
“There is no requirement as to which country is responsible for this. It doesn’t matter where the deficit is as long as there is an overall surplus.”