Active Mixed AidData Chinese Aid

China Eximbank provides $845.7 million preferential buyer’s credit for Phase 2 of Abuja-Keffi-Akwanga-Lafia-Makurdi Road Reconstruction Project (Linked to Record ID#31098)

$845.8K USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Nigeria
Country	Nigeria
Start Date	Oct 06, 2022
End Date	Nov 03, 2026
Duration	1,489 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`102678`

Grant Description

China Eximbank provides $845.7 million preferential buyer’s credit for Phase 2 of Abuja-Keffi-Akwanga-Lafia-Makurdi Road Reconstruction Project On October 6, 2022, China Eximbank and the Government of Nigeria signed a $845,753,419 preferential buyer’s credit (PBC) agreement for Phase 2 of the Abuja-Keffi-Akwanga-Lafia-Makurdi Road Reconstruction Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2.5%

Nigeria’s House of Representatives authorized the borrowing in July 2021.

The borrower was expected to use the proceeds of the loan to finance 85% of the cost of a $995,004,021.95 commercial contract that China Harbour Engineering Company Limited and the Government of Nigeria signed on on May 22, 2018.

The purpose of the project is to construct the 16 km Lafia Bypass Road and the 251.7 road segment that runs from 9th Mile (in Enugu) to Makurdi via Otukpo. China Harbour Engineering Company Limited is the EPC contractor responsible for project implementation.

📋 Staff Comments

This project is also known as Construction of Lafia Bypass Road and the Dualization of 9th Mile (Enugu)–Otukpo-Makurdi Road Project (Keffi Phase II).
The Chinese project title is 尼日利亚凯菲至马库尔迪公路改扩建工程项目.
The China Eximbank loan for Phase 1 of the Abuja-Keffi-Akwanga-Lafia-Makurdi Road Reconstruction Project is captured via Record ID#31098.
The borrowing terms of the China Eximbank loan for Phase 2 of the Abuja-Keffi-Akwanga-Lafia-Makurdi Road Reconstruction Project are unknown. For the time being, AidData assumes that the same borrowing terms (a 20-year maturity, a 7-year grace period, and a 2.5% interest rate) which applied to the China Eximbank loan for Phase 1 of the Abuja-Keffi-Akwanga-Lafia-Makurdi Road Reconstruction Project also applied to the China Eximbank loan for Phase 2 of the Abuja-Keffi-Akwanga-Lafia-Makurdi Road Reconstruction Project.
In its Chinese Loans to Africa (CLA) Database, Boston University’s Global Development Policy (GDP) Center records the loan commitment year for Phase 2 of the Abuja-Keffi-Akwanga-Lafia-Makurdi Road Reconstruction Project as 2017. AidData records the loan commitment year as 2021 for two reasons: (1) Nigeria’s House of Representatives did not authorize borrowing until July 2021. (2) The Government of Nigeria itself records the loan commitment year as 2021 in its voluntary reporting to the World Bank through the Debtor Reporting System (DRS).
As of December 2023, the China Eximbank loan for Phase 2 of the Abuja-Keffi-Akwanga-Lafia-Makurdi Road Reconstruction Project was not included in the China's Overseas Development Finance Database (CODF), which is managed by Boston University’s Global Development Policy (GDP) Center.
The loan commitment date is identified by the following

📚 Sources & References

https://www.dropbox.com/scl/fi/9k9ojnv5p2a3cjlnc2z7v/.pdf?rlkey=3j42dtjucj0whrunwzq4o2kgm&dl=08. There is some evidence that suggests two China Eximbank loans (a USD-denominated loan and RMB-denominated loan) were issued in support of Phase 2 of the Abuja-Keffi-Akwanga-Lafia-Makurdi Road Reconstruction Project. This issue warrants further investigation. See https://www.dmo.gov.ng/debt-profile/external-debts/debt-service/4729-nigeria-s-actual-external-debt-service-payments-in-1st-quarter-2024/file Sources: China-Exim pledges support for Nigeria’s infrastructural devt
ACTUAL EXTERNAL DEBT SERVICE PAYMENTS OCTOBER - DECEMBER, 2022 IN USD
ACTUAL EXTERNAL DEBT SERVICE PAYMENTS JANUARY - MARCH, 2023 IN USD
Analysis: Is Nigeria’s gamble on billion-dollar Chinese loans worth it?
Report Date: March 2023 Data Source: National Bureau of Statistics (NBS) Nigerian Domestic & Foreign Debt (Q4, 2022)
Four years after
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INVESTIGATION: Real reason construction of Abuja-Keffi-Makurdi highway is delayed
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Residents Laud Federal Government Road Projects In Nasarawa State, https://leadership.ng/completion-of-keffi-akwanga-lafia-road-project-spurs-sino-nigeria-ties/
中企承建的尼日利亚凯菲路助力当地发展
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中国港湾尼日利亚凯菲-马库尔迪公路改扩建工程贷款协议正式签署
中国港湾尼日利亚凯菲-马库尔迪公路改扩建工程贷款协议正式签署
进出口银行的非洲足迹—尼日利亚篇
FG To Complete Keffi- Akwanga-Lafia- Makurdi Roads April 2023
House Committee on Works Inspects Federal Highway Projects in the North Central Zone
FG secures China EXIM loan to fund Keffi-Akwanga-Lafia-Makurdi road project — Fashola
Plenary proceedings of the House of Representatives for Friday
July 16th, 2021
Reps approve $8.3bn, €490m W’Bank
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This Phase 2 comprises the 16km Lafia Bye Pass and the 251.7km stretch from 9th Mile-Oturkpo-Makurdi.
FG approves $995m, 15.4bn for two road projects
BUREAU OF PUBLIC PROCUREMENT (BPP)
Status Report 2017 : MAY 24th 2017 - JUNE 30th, 2018
Main Due Process Certificates Issued against FY2017 Appropriation, 2017 Procurement Records
China's Overseas Development Finance
DRS December 2023 Export
The Loan Agreement for Keffi Road Phase II Project in Nigeria
Actual External Debt Service Payments
January to December, 2022
Actual External Debt Service Payments
January to December, 2023
Actual External Debt Service Payments
January - March, 2024 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.