Nigeria’s Debt: China Confirm Plan To Forgive Loans To 17 African Countries

The Chinese government has announced its intention to forgive 23 interest-free loans owed by 17 African countries. While the specific countries included in this waiver have not been disclosed, China has also indicated plans to provide food assistance to nations facing difficulties. According to Media Talk Africa, Nigeria’s borrowing from China had reached $3.67 billion by September 2021, representing an increase of 89.94 percent. Over the years, China has emerged as Nigeria’s largest bilateral lender due to their collaborative efforts.

In this recent development, Chinese Foreign Minister Wang Yi stated that the loans to be waived had matured by the end of 2021. However, he did not specify which countries are involved or the total amount of the loans being forgiven. This decision was reportedly made during the Forum on China-Africa Cooperation (FOCAC). Wang emphasized China’s ongoing support for major infrastructure projects in Africa, highlighting the country’s commitment to financing, investment, and assistance.

Wang’s statement also included a pledge to increase imports from Africa and to support the development of the continent’s agricultural and manufacturing sectors. He expressed a desire to expand cooperation in emerging industries such as the digital economy, health, and green and low-carbon sectors. He remarked, “What Africa wishes for is a favorable and amicable cooperation environment, not the zero-sum Cold War mentality.”

Media Talk Africa noted that FOCAC took place in Senegal in November 2021, during which Beijing committed to delivering $3 billion of a promised $10 billion in credit facilities to African financial institutions. Furthermore, Wang announced that China had agreed to grant tariff-free entry for 98% of exports from 12 African countries and had provided emergency food assistance to Djibouti, Ethiopia, Somalia, and Eritrea. He stated, “So far this year, China has signed an exchange of letters with 12 African countries on zero tariffs for 98% of their export items to China. We have provided emergency food assistance to Djibouti, Ethiopia, Somalia, and Eritrea. More African agricultural produce has reached the Chinese market through the green lanes.”