Business
Nigeria’s Chinese Debt Skyrockets By $800 Million In One-Year Span
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.
The NNPC Foundation Limited/Gte, the Corporate Social Responsibility (CSR) arm of the Nigerian National Petroleum Company Limited (NNPC Ltd), has won the CSR Champion Award (Health) 2025 instituted by the Independent Newspapers.
Biztellers reports that the award was presented during the Silver Jubilee edition of the Independent Newspapers Awards, themed “Game Changers: Breaking Barriers and Shaping Tomorrow,” held at Eko Hotel and Suites on Saturday, 18 April 2026.
The CSR Champion Award (Health) recognises the Foundation’s work in healthcare and its broader commitment to improving lives through social investment programmes spanning health, education, environment, and access to energy.Primary & Secondary Schooling (K-12)
The recognition follows a series of health initiatives delivered by the Foundation, including free cataract screening and surgeries that restored sight to over 6,000 Nigerians, including minors born blind; cancer and glaucoma interventions; medical outreaches to underserved communities; renovation and furnishing of three wards with 100 beds at the National Orthopaedic Hospital, Igbobi; partnership and sponsorship of heart surgeries; and provision of dental health accessories to children in special schools, among others.
The NNPC Foundation noted that these results were made possible through the leadership and support of the NNPC Ltd. Management team, whose commitment has continued to strengthen the Foundation’s capacity to deliver social investments across the country.
Reacting to the award, the Managing Director of NNPC Foundation, Emmanuella Arukwe, described the recognition as a validation of the Foundation’s work and the trust placed in it by Nigerians. She noted that the award means so much to the company because it represents the confidence Nigerians have placed in its work and the value they see in purposeful social investment.
“It speaks to the resilience of the communities we serve, the dedication of our team, and the strength of partnerships that have enabled us to do meaningful work in health, education, environmental sustainability and access to energy,” she added.
In addition, Arukwe noted that “these results have also been made possible through the leadership and support of the NNPC Ltd. Management team, whose backing has been instrumental to the success of the Foundation’s work. We receive this award with gratitude, and with a renewed sense of responsibility to do more and reach further across the country.”
The NNPC Foundation Limited/Gte remains committed to advancing health interventions that improve outcomes and contribute to national development.
The Nigerian National Petroleum Company Limited (NNPC Ltd), through its Research, Technology and Innovation (RTI) Division, in collaboration with the Petroleum Technology Development Fund (PTDF), has signed a Memorandum of Understanding (MoU) with Sonatrach, the Algerian National Oil Company, for cooperation in research, development, and innovation.
The agreement, signed by NNPC Ltd’s Executive Vice President, Business Services, Sophia Mbakwe, and Sonatrach’s Managing Director, Khodjah Mohamed, establishes a formal framework for joint work in research and technology exchange between the two national oil companies.
This was contained in the press statement issued on Thursday by Chief Corporate Communications Officer Mr. Andy Odeh.
According to the statement, the agreement, held during the opening ceremony of the 3rd Meeting of the African Petroleum Producers’ Organization (APPO) Forum for R&D Directors at the PTDF Tower in Abuja, Nigeria, brought together research and development directors from APPO member countries.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, represented by former Secretary General of APPO, Omar Farouk Ibrahim, said the forum was one of four measures introduced by APPO to address challenges from the global energy transition, which center on funding, technology, and markets.
“The R&D forum tackles technology and expertise needs, the African Energy Bank addresses funding constraints, and the Central African Pipeline System supports regional oil and gas market integration,” Lokpobiri stated.
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Earlier in his remarks, Group Chief Executive Officer, NNPC Limited, Engr. Bashir Bayo Ojulari, represented by the Company’s Chief Financial Officer, Adedapo Segun, said research and development must form a central part of the overall strategy in the African oil and gas industry.
He called for research and development centres to function as engines of industrial competitiveness. “Collaboration in research and development is of strategic importance. The cost of innovation might be high, but the cost of obsolescence would be greater,” he stressed.
Ojulari called for a unified strategic framework through which resources could be pooled, data integrated, and risks shared across member countries.
He further urged the rapid adoption of digital technologies, artificial intelligence, and advanced engineering to improve upstream, midstream, and downstream operations.
On his part, the APPO Secretary General, Farid Ghezali, urged African petroleum-producing countries to ensure research in the oil and gas sector produced solutions that are practical and directly relevant to the continent. “We must ensure that our research delivers solutions that are practical and of direct use to Africa,” he stated.
Also speaking, the Executive Secretary of the Petroleum Technology Development Fund (PTDF), Prof. Shu’aibu Shehu Aliyu, highlighted the value of the partnership between NNPC Limited and PTDF in supporting decarbonization and environmental protection efforts across APPO member countries.
Chief Innovation Officer of NNPC Research, Technology and Innovation and incoming Chairman of the APPO R&D Directors Forum, Rasheed Ojulari, said the forum would give immediate priority to joint programs in the core areas of upstream optimization, artificial intelligence, decarbonisation processes, and industrial systems development.
The Nigerian Gas Association (NGA), has opined that a predictable fiscal and regulatory environment are ingredients essential to de-risking investments and accelerating project delivery in the oil and gas sector.
This was detailed in a statement released by NGA at the end of its maiden Legal Forum emphasised that investor confidence will be shaped by the robustness of commercial and contractual structures across the gas value chain, strengthened contractual clarity, and efficient dispute resolution mechanisms.
In his opening address, President of the NGA, Aka Nwokedi, underscored the urgency of aligning Nigeria’s legal architecture with its strategic gas ambitions, noting that the sector’s next phase of growth will be defined by the strength, clarity, and credibility of its regulatory environment.
“Nigeria’s gas resources present a defining opportunity for economic transformation, but realising this potential will depend on building a legal framework that is transparent, predictable, and globally competitive”, he stated.
Discussions throughout the Forum reflected a clear and consistent theme: that Nigeria’s opportunity now lies in execution.
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While the Petroleum Industry Act (PIA) has established a transformative foundation for sector reform, participants emphasised that its true impact will be determined by disciplined implementation, regulatory coherence, and institutional alignment.
The need to eliminate ambiguity and strengthen enforcement emerged as central to unlocking sustained investment.
As global energy systems continue to evolve, the Forum reinforced natural gas as Nigeria’s most strategic lever for balancing economic growth, energy security, and emissions reduction. Participants highlighted that legal and regulatory frameworks must evolve accordingly, moving beyond policy intent to embed clear, enforceable standards on carbon management, ESG obligations, and sustainability.
“In an increasingly competitive global market, such clarity will be critical in attracting long-term capital.”
The Forum also acknowledged the policy direction of the administration of President Bola Ahmed Tinubu in advancing gas development through infrastructure expansion and increased domestic utilisation.
Stakeholders noted that sustained policy stability will serve as a critical signal to both domestic and international investors evaluating long-term opportunities in Nigeria’s gas sector.
Beyond its technical depth, the NGA Legal Forum marked an important step in bridging the longstanding gap between legal frameworks and industry realities, creating a structured platform for continuous engagement, practical alignment, and forward-looking policy development.
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