(Ecofin Agency) - Nigeria’s borrowings from China are concessional loans with interest rates of 2.50 percent per annum, a repayment period of 20 years, and a 7-year grace period.

Nigeria's debt to state-owned Chinese banks more than tripled between June 2015 and December 2021, increasing Beijing's share of the West African country's bilateral debt to 84.7 percent, according to data released by the Nigerian Debt Management Office (DMO) today.

The same source said Nigeria's debt to the Middle Kingdom rose from $1.39 billion as of June 30, 2015, to $4.29 billion as of December 31, 2022.

The debt is made up of concessional loans with interest rates of 2.50 percent per annum, a repayment period of 20 years, and a 7-year grace period.

According to the Debt Management Office, the Chinese loans financed 15 projects, including rehabilitating the Abuja-Keffi-Makurdi road, upgrading the Lagos-Ibadan railway line, and providing rolling stock and equipment for the Abuja light rail project.

Nigeria's total bilateral debt reached $5.07 billion at the end of December 2022, up from $1.58 billion at the end of June 2015.

Besides China, the country’s other major bilateral creditors are France, Japan, India, and Germany.