There is palpable anxiety among Nigerians following the revelation that the country has failed to service its debt to China which has accumulated to N110.31 billion in the last two years.

According to a report by the Debt Management Office (DMO), the China debt stock included the principal and repayment charges.

DMO said that from January 2021 to December 2022, the principal fee stood at N69, 009,417,500 ($153.85million), while the interest charges amounted to the sum of N41, 311,455,000 ($92.1million).

The debts were incurred following the completion of the Nigeria Railway Modernisation Project (Idu-Kaduna Section), the Nigeria Railway Modernisation Project (Lagos-Ibadan Section) and the Nigeria Abuja Light Rail Project.

A breakdown of the data showed that in 2021, Idu-Kaduna Section’s principal fee was $ 38.46 million (N17.25bn) while interest earmarked is $ 9.5 million (N4.26bn).

The Lagos-Ibadan section’s principal was not noted, although its interest stood at $ 24.07 million (N10.80bn).

During the period, the Abuja Light Rail Project had its principal amount at $38.46 million (N17.25bn), while the interest rate accumulated to $11.45 million (N5.14bn).

As at 2022, the principal on the Idu-Kaduna Section was $38.46 million (N17.25bn), while the interest fee was $8.52 million (N3.82bn).

The Lagos-Ibadan Section interest fee stood the highest at $ 28.06 million (N12.59bn) with the principal amount not indicated. Nigeria’s total public debt stock hit N46.25 trillion as at December 31, 2022.

Public finance analyst, John Iduh, said the development is not good for Nigeria as it could dampen foreign investors’ confidence in Nigeria.

“This is not a good development; Nigeria will be avoided by foreign investors who are looking for where to put their money and this would hamper economic development,” Iduh said in a telephone chat.

Source: thewillnews