Federal Government to borrow $2 billion from China!

Federal Government has indicated that it has interest in seeking $2 billion loan from China. This came after a disclosure by finance minister Kemi Adeosun on Wednesday.

The Finance Minister who plans to travel to China next week, aims to negotiate a loan of up to $2 billion to help fund record budget spending.

A credible source revealed that President Muhammadu Buhari will readily sign any loan agreed during during his visit to Beijing next month.

"The finance minister, in the company of the central bank governor, is scheduled to be in China sometime next week to conclude negotiations on the $2 billion loan," said an official, who asked not to be named.

With China largely closed for the Lunar New Holiday, it is unclear how keen Beijing is on the idea, or how tough a bargain it might demand.

The official acknowledged negotiations had been underway for some time and that the terms had yet to be agreed. However, he added: "Hopefully it may be sorted out during this meeting and the loan will be signed during President Buhari's visit to China in March this year."

The central bank could not confirm whether Governor Godwin Emefiel would be joining Adeosun.

Nigeria wants to raise about $5 billion abroad to cover part of its 2016 budget deficit. This is projected to hit 3 trillion naira ($15 billion) due to heavy infrastructure spending at a time when the slump in global oil prices has slashed it export revenues.

Buhari, who was elected in March 2015 on a promise to fix the country, wants to turn around the economy by investing in power plants and transport, ending a development paralysis under his predecessor Goodluck Jonathan.

The president asked China in December to fund rail and power projects and Adeosun, who already visited Beijing last week, has raised the possibility of seeking a loan from the Export-Import Bank of China.