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Nigeria will mortgage national asset for Chinese loans – DMO

Nigeria’s total debt stock as at Sept. 30 was 37.9 billion dollars, this figure comprised the external debt stock of the Federal Government, 36 state governments and the federal Capital Territory.

The debt management office — DMO has clarified that loans from China to Nigeria, which presently stood at 3.59 billion dollars, constitutes only 9.4 per cent of the country’s total foreign debt stock of 37.9 billion dollars.

The Director-General of the debt management office — Ms Patience Oniha who made this known via an interview with the news reporters in Abuja clarified that the loans were largely concessional, as no national asset was tagged as collateral.

NAN had reported that both the social and mainstream media have been awash with news about some African countries, including Nigeria, facing the threat of losing some critical national assets to the Asian country due to high level indebtedness.

Nigeria’s total debt stock as at Sept. 30 was 37.9 billion dollars, this figure comprised the external debt stock of the Federal Government, 36 state governments and the federal Capital Territory.

“But total loans from China stands at 3.59 billion dollars, which is 9.47 per cent of the total external debt. The loans did not require any national asset as collateral; as they were largely concessional”, she said.

She also explained that before foreign loans were contracted, very sensitive steps were taken by multiple institutions of government to ensure that they were beneficial to the nation.

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“Before any foreign loan is contracted, including the issuance of Eurobond, they are approved by the Federal Executive counsel and thereafter, the National Assembly. “An important and extremely critical step is that the loan agreements are approved by the Federal Ministry of Justice. ”An opinion is issued by the Attorney-General of the Federation and Minister of Justice before the agreements are signed.

Oniha urged Nigerians to always endeavour to verify sensitive information from official sources before disseminating it.

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