Will China impact Nigeria’s growth prospects?   


5th September, 2019 : China’s growth slowed to 6.2% in the second quarter, its weakest expansion in three decades. 


Most recently, China's backing in the form of loans reached $16 billion and its vested interest is seen as a key support for the current production level of 1.85 million barrels per day. 


However, Nigeria aims to reach three million barrels per day and needs more investment from China, which may prove to be more difficult going forward if China's economy continues to decline.


The high level of debt to China is also proving to be a weight on fiscal revenues because Nigeria spent 50% of its 2018 government revenues on debt repayment.


Indeed, the IMF has urged Nigeria to curb its large appetite for Chinese loans as the country struggles with a €70 billion debt burden. That’s up from €62 billion in 2017, representing a year-on-year rise of 12.25 percent.


Reporting for EasyKobo on Thursday , 05 September 2019 in Lagos, Nigeria


Source:  Lukman Otunuga, Senior Research Analyst at FXTM.


Copyright @ 2010-2019 Easykobo.com by Naija infotech & solar energy ltd. All rights reserved