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Nigeria’s Chinese Debt Skyrockets By $800 Million In One-Year Span

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Nigeria’s debt to China rose by $800 million in the span of one year, increasing from $3.93 billion as of June 30, 2022, to $4.73 billion as of June 30, 2023.

 

This marks a 20.36% surge from the second quarter of 2022 to Q2 2023, according to analysis based on data from the Debt Management Office.

 

Despite the Federal Government maintaining secrecy about the terms of the China loans, the DMO has previously made some statements regarding them.

 

Recall that in a statement in June 2020, the DMO said, “The total borrowings from China of $3.121bn as of March 31, 2020, are concessional loans with interest rates of 2.5 per cent per annum, tenor of 20 years and grace period (moratorium) of seven years.”

 

As per the Debt Management Office (DMO), the terms of the loans from China align with Section 41 (1a) of the Fiscal Responsibility Act, 2007.

 

The loans feature a low interest rate, minimizing the government’s interest costs, and a prolonged tenor, facilitating the repayment of the principal sum over an extended period.

 

In a document titled ‘Status of Chinese loans as at September 30, 2021,’ the DMO revealed that 15 projects, spanning water supply, power generation, railways, airport terminals, communication, and agricultural processing, were funded by these loans.

 

The initial loan project, the Nigerian Communications Satellite project, involved $200 million and was agreed upon on January 12, 2006.

 

This five-year loan matured on June 29, 2018, and Nigeria successfully paid it off. The interest rate was three percent per annum, resulting in a payment of $40.02 million in interest.

 

The second loan, for the Nigerian national public security communication system project, amounted to $399.50 million and was agreed upon on December 20, 2010, with disbursement.

 

The third loan supported the Nigerian railway modernization project (Wu-Kaduna section) with $500 million, agreed upon on December 20, 2010, and disbursed.

 

The fourth loan, directed at the Abuja light rail project, amounted to $500 million and was agreed upon on November 7, 2012, with subsequent disbursement.

 

The fifth loan targeted the Nigerian Information and Communication Technology infrastructure backbone project, involving $100 million and an agreement reached on January 5, 2013, with disbursement.

 

The sixth loan was allocated for the expansion of four airport terminals (Abuja, Kano, Lagos, and Port Harcourt) with $500 million agreed on July 10, 2013. However, only $455.28 million, equivalent to 91.06 percent of the agreed amount, was disbursed.

 

The seventh loan, designated for the Nigerian Zungeru hydroelectric power project, amounted to $984.32 million, agreed upon on September 28, 2013. However, only $518.24 million, representing 52.65 percent of the agreed amount, was disbursed.

 

The eighth loan, allocated for the Nigerian 40-parboiled rice processing plants project under the Federal Ministry of Agriculture and Rural Development, amounted to $325.67 million. This agreement was reached on April 26, 2016, but no disbursement occurred.

 

The ninth loan, dedicated to the Nigerian railway modernization project (Lagos – Ibadan section), amounted to $1.27 billion, agreed upon on August 18, 2017. However, only $759.84 million, equivalent to 17.50 percent of the agreed amount, was disbursed.

 

The tenth loan aimed at the rehabilitation and upgrading of the Abuja-Keffi-Markurdi road project with $460.82 million, agreed on August 18, 2017. However, only $80.64 million, representing 59.96 percent of the agreed amount, was disbursed.

 

The eleventh loan, intended for the Nigeria supply of rolling stocks and depot equipment for the Abuja light rail project, amounted to $157 million, agreed upon on May 29, 2018. Nevertheless, no disbursement occurred.

 

The twelfth loan, allocated for the Nigeria Greater Abuja water supply project, involved $381.09 million, agreed upon on May 29, 2018. However, no disbursement took place.

 

The thirteenth loan, designated for the Nigerian Four Airport Terminal Expansion Ancillary Project, amounted to $183.62 million, agreed upon on December 27, 2019. Yet, no disbursement was made.

 

The fourteenth loan, intended for the Nigerian Four Airport Terminal Expansion Incremental Project, amounted to $208.90 million, agreed upon on December 27, 2019. However, no disbursement occurred.

 

The fifteenth loan, allocated for the Nigerian ICT Infrastructure Backbone Phase II Project, involved ¥2.3 billion and was agreed upon on September 5, 2018. However, only ¥480.40 million, equivalent to a partial disbursement, was executed.

 

The document reveals that only the 15th loan project was denominated in Chinese Renminbi Yuan.

 

Additionally, it contradicts the DMO’s claim in June 2020, showing varying interest rates ranging from 2.5 percent to three percent, not exclusively fixed at 2.5 percent.

 

During the reviewed period, Nigeria serviced Chinese loans with $263.14 million, as observed by The PUNCH.

 

Data from external debt service reports indicates that Nigeria may not be obligated to make any payments in Q2, as no debt service payment for Chinese loans was recorded in both Q2 of 2022 and 2023.

 

Addressing concerns about potential asset forfeiture due to loan default, the Director-General of the DMO, Patience Oniha, reassured Nigerians in 2021 that the loans were predominantly concessional, and no national asset was designated as collateral.

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Renaissance Capital Sees Significant Upside in Dangote Refinery, Lifts Valuation by 33.4%

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Leading investment research firm Renaissance Capital Africa (RCA) has upgraded its valuation of Dangote Petroleum Refinery and Petrochemicals (DPRP) to N700.41 per share, implying a 33.4 percent upside from the refinery’s IPO offer price of N525 per share.

According to RCA, the valuation increase reflects the refinery’s exceptional earnings performance in the first nine months of 2026, driven by stronger refining margins and better-than-anticipated operational results. Revenue, EBITDA and net profit all exceeded the firm’s expectations during the period.

READ ALSO: Dangote Refinery IPO Elicits Participation in 90 Countries Globally

In its October 16, 2026, update, titled “Stronger Refining Margins Drive Earnings Outperformance,” the investment firm cited robust refining margins and stronger operating results as key drivers of the enhanced valuation.

The remarkable investor interest comes against the backdrop of the refinery’s strong operational and financial performance. For the nine months ended September 30, 2026, the DPRP reported revenue of US22.5 billion and net profit of US4.7 billion, representing one of the strongest financial performances recorded by an African industrial enterprise in recent years.

The results marked a significant turnaround from the corresponding period in 2025, when the company recorded a loss of US117.2 million. Revenue grew by 144 percent from US9.2 billion, while EBITDA increased nearly nine-fold to US5.5billionfromUS627.6 million. Operating cash flow rose more than ten-fold to US$3.68 billion, underscoring the refinery’s growing ability to generate substantial earnings and cash flow from its operations.

The company also strengthened its balance sheet considerably, moving from a net debt position of US1.73 billion as of September 2025 to a net cash position of US651 million by September 2026, reflecting improved liquidity and financial resilience.

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Dangote Refinery IPO Elicits Participation in 90 Countries Globally

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The Dangote Petroleum Refinery & Petrochemicals (DPDP) has revealed that its ongoing Initial Public Offering (IPO) has attracted exceptional participation from investors across Africa and around the world, with subscriptions received from more than 90 countries, including investors from 51 of Africa’s 54 nations.

The unprecedented level of participation positions the transaction as Africa’s first truly pan-African public offering, reflecting strong investor confidence in African-led industrialization and a growing desire among Africans to own strategic assets built on the continent.

The company noted that the IPO has already set new benchmarks in the capital markets, breaking the Nigerian market record on its opening day and surpassing the previous African record within its first ten days, driven by robust demand from retail investors, pension funds, institutional investors, asset managers, and members of the investing public.

On the milestone, Chief Financial Officer of Dangote Group, Murat Erden, said: “This offering represents far more than a capital-raising exercise. It is a landmark opportunity for Africans and global investors alike to participate in the ownership of one of the continent’s most transformative industrial assets. The extraordinary participation from individuals and institutions across Africa demonstrates a shared conviction that Africans should not only benefit from industrial development but also own and create wealth from it.”

The remarkable investor interest comes against the backdrop of the refinery’s strong operational and financial performance. For the nine months ended September 30, 2026, the DPRP reported revenue of US22.5billion and net profit of US4.7 billion, representing one of the strongest financial performances recorded by an African industrial enterprise in recent years.

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The results marked a significant turnaround from the corresponding period in 2025, when the company recorded a loss of US117.2 million. Revenue grew by 144 percent from US9.2 billion, while EBITDA increased nearly nine-fold to US5.5 billion from US627.6 million. Operating cash flow rose more than ten-fold to US$3.68 billion, underscoring the refinery’s growing ability to generate substantial earnings and cash flow from its operations.

The company also strengthened its balance sheet considerably, moving from a net debt position of US1.73 billion as of September 2025 to a net cash position of US651 million by September 2026, reflecting improved liquidity and financial resilience.

According to Erden, the refinery’s current performance significantly exceeds the assumptions underpinning the IPO valuation. “Our financial performance has already advanced well beyond the baseline assumptions used in determining the IPO valuation. The refinery’s operational momentum, scale and efficiency continue to create substantial shareholder value and reinforce our confidence in its long-term growth prospects.”

In a major boost to African capital-market integration, the transaction has also benefited from pioneering cross-border market collaborations involving Botswana, Egypt, Ethiopia and Kenya, helping to broaden access and reduce barriers to participation for investors across the continent.

The DPDP described the IPO as a powerful demonstration of the increasing sophistication, depth and interconnectedness of African financial markets, providing a blueprint for future continent-wide investment offerings.

The company reiterated that the IPO provides a unique opportunity for investors to become shareholders in one of Africa’s largest and fastest-growing industrial enterprises, with the potential for USD-linked dividends, subject to the company’s dividend policy and applicable regulatory approvals.

With the offer scheduled to close on 27 October 2026, the company has intensified investor education and engagement activities across key markets to ensure broader inclusion and participation. The refinery emphasized that no further extension of the offer period is currently planned.

On the significance of the transaction, Erden added: “We are witnessing the emergence of a new chapter in African industrial ownership and capital-market development. The overwhelming response from investors across 51 African countries and more than 90 countries globally is a resounding vote of confidence in Africa’s future and in the ability of world-class African enterprises to deliver sustainable value for shareholders.”

The company expressed appreciation to regulators, stockbrokers, issuing houses, financial institutions, fintech partners, community leaders, investor associations and the investing public for their support and participation throughout the offer period.

 

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Tesla Aims for 2028 Commercial Production of Flying Car

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Tesla has set a 2028 commercial production date for its new Roadster sports car that can briefly rise into the air using rocket technology.

According to CNN, the date was revealed when the manufacturers demonstrated its functionality on Thursday at a SpaceX testing facility in Texas, United States, where the two-seater vehicle performed a series of manoeuvres, including driving upside down before making a short airborne movement.

The prototype was operated without a driver during the test, with Musk saying the decision was taken “to make sure we don’t kill anyone.”

“Success is not guaranteed. I mean that. It’ll probably work, but if it doesn’t work, we’re at a safe distance,” he said.

READ ALSO: 2027 Election: ‘Your Future Is More Valuable’ — IGP Warn Youths Against Political Violence

CNN reported that the vehicle uses 10 nozzles and high-pressure air tanks to generate thrust, with Musk claiming it could accelerate from zero to 60 miles per hour in less than a second.

The Tesla boss attributed the development to cooperation between the electric vehicle manufacturer and SpaceX, the rocket company he also leads.

He described the project as “the results of what happens when you have a collaboration with the world’s best car company and the world’s best rocket company.”

Musk also sought to assure spectators that the demonstration was genuine, saying, “We need an audience to prove that it’s not AI or SI. So you guys can tell people you saw it with your eyes, because what you see with your eyes, you will not believe.”

Despite the display, questions remain about whether the vehicle can achieve sustained flight and how practical it would be for everyday transportation.

Roger Conner, curator for vertical flight at the Smithsonian’s National Air and Space Museum, told CNN that combining the requirements of road vehicles and aircraft presented significant engineering challenges.

“Aircraft are extremely sensitive to weight, whereas with ground vehicles you want them to have bumpers and crumple zones and all that,” he said.

“Inevitably, something that is a hybrid between the two is going to be a poor performing aircraft and a poor performing vehicle, and also quite expensive,” he added.

Conner questioned whether the demonstration amounted to flying in the conventional sense.

“We’re not talking about sustained flight. We are literally talking about hopping,” he said.

However, Jim Dukhovny, chief executive of flying car startup Alef, said the technology was achievable, while pointing to the difficulties involved in making such vehicles transition safely from vertical take-off to forward flight.

“It absolutely is 100% feasible,” he told CNN.

“That being said, the hardest part on all eVTOLs, and for us, it’s a transition from (rising) vertical to (moving) forward. It needs to be extremely careful, making sure you do not lose lift, and making sure it’s very stable,” he added.

CNN also reported that Alef’s prototype weighs about 254 pounds, uses eight propellers and is designed to carry one person.

Musk said Tesla intended to begin production of the new Roadster in 2028.

CNN reported that the latest display adds to Musk’s ambitions to push Tesla’s vehicle technology beyond conventional electric cars, although the prototype’s ability to operate as a practical flying vehicle has yet to be established.

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