Buhari’s friends and foes marvel at goodies China offered Nigeria

ABUJA, Tuesday

Unfazed by criticisms over his frequent international travels, Nigerian President Muhammadu Buhari went to China on April 10, his 26th trip abroad since his May 29, 2015 inauguration.

In his absence, a deaf silence was maintained by his supporters while the opposition threatened thunder and brimstone, but the President returned with stunning surprises.

His basket of goodies from China has kept many, including his foes, marvelling at the magic of the fiery 73-year-old retired army general and former military head of state.

President Buhari’s package from the Asian country will certainly have an impact on the dwindling Nigerian economy.

China has offered Nigeria a $6 billion loan (Ksh612bn) to fund critical infrastructure projects, Foreign Affairs minister Geoffrey Onyeama said.

“It is a credit that is on the table as soon as we identify the projects. It won’t need an agreement to be signed; it is just to identify the projects and we access it,” the minister explained.

Mr Onyeama further disclosed that the Industrial and Commercial Bank of China Ltd (ICBC), the world’s biggest lender, and the Central Bank of Nigeria (CBN), signed an agreement on Yuan transactions.

“It means that the Yuan (renminbi) is free to flow among different banks in Nigeria and has been included in the foreign exchange reserves of Nigeria.’’

The above deal reduces the pressure on the 30 Naira for Yuan exchange rate for international transactions.

TRADE DEALS

Meanwhile, business relations between Nigeria and China have grown astronomical in the last decade, with bilateral trade volumes rising from $2.8 billion in 2005 to $14.9 billion in 2015.

Nigeria accounted for 8.3 per cent of the total trade volume between China and Africa and 42 per cent of the total trade volume between China and the Economic Community of West African States (Ecowas) countries in 2015.

The agreement on Yuan transactions the Director General of the Foreign ministry’s African Affairs Department, Mr Lin Songtian, said would “mean that the renminbi is free to flow among different banks in Nigeria and the renminbi has been included in the foreign exchange reserves of Nigeria”.

The agreement was reached following a meeting between President Buhari and his Chinese counterpart Xi Jinping.

Another Memorandum of Understanding was signed between a Nigerian company and a Chinese firm to establish a mining plant in the West African state this year.

President Xi offered $15 million agricultural assistance to Nigeria for the establishment of 50 Demonstration Farms across the country.

The Dangote Group, the company owned by Africa’s richest man, Mr Aliko Dangote, signed a $2 billion loan from the ICBC for two cement plants.

“The interest rate is okay, quite favourable with me,” Mr Dangote said, without elaborating.

“It is for my two cement companies that we are establishing in Nigeria.”

Africa’s leading cement manufacturer, the Dangote Cement Plc, last week held a ground breaking in Okpella, Edo State, to signal the commencement of the construction of  $1 billion plants with potentials for 6,000 new jobs.

The new cement plants are expected to further increase the $3 billion Nigeria has been saving from import substitution yearly.

The new 6 million metric tons per annum capacity cement plant is coming on the heels of similar arrangement for another 6 million metric tons plant plant in Itori, in Ogun State where the Dangote company was currently running 12 million metric tons plants at Ibese, in Yewa Division.

Others deals President Buhari negotiated was $478.657.941.28 for the construction of 300MW Solar Power in Shiriro in Niger State; and $55m agreement between Granite and Marble Nigeria Limited and Shanghai Shibang to construct and equip granite mining plant in Nigeria.

There was also $1 billion for the development of a greenfield expressway Abuja-Ibadan-Lagos; $250m in housing to develop a 27-storey complex; and $2.5bn Lagos Metro-Rail Transit Red Line Project.

The $1bn industrial park (Ogun-Guangdong) Free Trade Zone in Igbesa Ogun State; the $200m Ogun-Guangdong free trade zone for construction of two 500MT/day float gas facilities; and $363m for the establishment of comprehensive farm and downstream industrial park in Kogi State were also negotiated.

Nigeria also clinched a $525 million for the Mojec International LTD & Microstar Company LTD for television broadcast equipment and production of pre-paid smart meters for electricity consumers.