Nigeria Refutes Allegations of $240Million Default on Chinese Loans

The DMO said the federal government had not defaulted in the payment of interest to China for loans and does not have an accumulated to $240m in the last two years.

According to reports, Chinese loans were obtained to fund the renovation of Nigeria’s railway lines.

However, the Debt Management Office (DMO) issued a statement on Wednesday denying these reports, stating that Nigeria is fully committed to meeting its debt obligations and has not defaulted on any debt service commitments.

The DMO emphasised that Nigeria remains steadfast in fulfilling its debt obligations in a responsible and judicious manner.

The DMO also urged the public to disregard the reports. As of December 2021, Nigeria’s debt to China was reported to be $4.1 billion, although the current status of Chinese loans to Nigeria was not disclosed by the DMO.

Nigeria has faced revenue losses in recent years due to attacks on rail tracks and kidnapping of train passengers, resulting in disruptions to train services on certain routes.