FG seeks $4.5bn loan from China, to invest it in agriculture

President Muhammadu Buhari has asked the ministers of finance, budget and national planning and the Central Bank of Nigeria (CBN) to sort out the technical details of a ‎$4.5billion loan from China.

Abdulazeez Yari, governor of Zamfara state, disclosed this to journalists on Tuesday, after meeting with President Muhammadu Buhari.

He said the loan would be invested in the agricultural sector.

Yari said when the details are sorted out, it would be presented to the federal executive council (FEC) and later the national assembly for approval.

“So we are making a huge progress with this partnership and realise that China is coming first to support this country,” he said.

“The president has given us his commitment and also asked us to engage the minister of finance, budget and national planning and the CBN to conclude and then the minister of agriculture will make a presentation to council, then to the national assembly for final approval.

“They are giving us a credit line of $4.5 billion which will cover the machinery and infrastructure that is rural earth dams, irrigation, and the loan has a 20 years repayment term with five years moratorium.

“Understanding the economy of Nigeria, we negotiated to give a counterpart funding of 10 percent which we believe Nigeria can do and we are targeting the natural resources fund from the counterpart funding.”

Also speaking with journalists, Audu Ogbeh, minister of agriculture, said the Chinese government also indicated willingness to accept agricultural produce as payment.

“The Chinese were willing to supply us these things for a long term basis, 20 years credit at an interest rate of one percent per annum,” he said.

“A committee has been working on the matter and we are close to sorting out all the small details and that is why we came to see the president.”