Active Mixed AidData Chinese Aid

[Suspended] China Eximbank provides $325.67 million loan for 40 Parboiled Rice Processing Plants Project

$325.67M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Nigeria
Country	Nigeria
Start Date	Apr 26, 2016
End Date	Jul 04, 2026
Duration	3,721 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`61208`

Grant Description

[Suspended] China Eximbank provides $325.67 million loan for 40 Parboiled Rice Processing Plants Project On April 26, 2016, China Eximbank and the Government of Nigeria signed a $325.67 million preferential buyer’s credit (PBC) agreement for the 40 Parboiled Rice Processing Plants Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2.5%

The final loan maturity date is March 21, 2036.

As of December 31, 2020, Nigeria’s Debt Management Office (DMO) reported that the China Eximbank loan had not disbursed and the borrower had not made any interest or principal repayments to the lender. The purpose of this project is to develop 40 parboiled rice processing plants nationwide.

📋 Staff Comments

The Chinese project title is 大米加工厂.
This loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020.
AidData assumes that this loan was issued in the form of a PBC because it was denominated in USD and provided on highly preferential terms.
AidData records the borrowing terms reported by Nigeria’s Debt Management Office (DMO) in its ‘Loans Obtained from China Exim As At December 31, 2020’ publication.
AidData assumes this project has been suspended because (1) Nigeria does not identify the progress of this project beyond 2020, as the government normally has great records for its projects; (2) a Nigerian media source reported that China Eximbank never released the fund while Nigeria had released its portion of 15% for this project. This issue requires further investigation.

📚 Sources & References

EXCLUSIVE: Inside China’s $6.5 billion loans to Nigeria since 2002
How FG spent $4.8bn foreign loans in two years
Status of Loans Obtained from China Exim As At March 31_2020
China
Nigeria Seal $5.57bn Loan Agreements under Eight Years
Loans Obtained From China Exim
December 31, 2020, 2016 Annual Report and Statement of Accounts
Loans Obtained From China Exim
September 30, 2021
China’s reluctance to continue lending affects major Nigerian projects, communities 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.