According to the Minister of Foreign Affairs, Geoffrey Onyeama China has granted Nigeria a $6 billion loan to fund infrastructural projects. “It won’t need an agreement to be signed; it is just to identify the projects and we access it,” he said.
For months, Nigeria has been looking for sources to fund a projected N2.2 trillion ($11.1 billion) deficit in the 2016 Budget, as the president plans to triple capital spending in the 2016 fiscal year.
According to Reuters, Nigeria also entered a currency swap deal with China as the Industrial and Commercial Bank of China Ltd (ICBC), the world’s biggest lender, and Nigeria’s central bank signed a deal on yuan transactions. According to Lin Songtian, Director General of the African Affairs Department of China’s foreign ministry, “It means that the renminbi (yuan) is free to flow among different banks in Nigeria, and the renminbi has been included in the foreign exchange reserves of Nigeria”
See more photos of the President today in China.