The Federal Government has appealed to the Chinese government to blend its grants with loans to reduce debt burden on the country.
Speaking at the China-Nigeria Economic and Trade Cooperation Forum in Abuja yesterday, the Minister of National Planning and Budget, Senator Udoma Udo Udoma said current Chinese efforts in assisting Nigeria are commendable. He said the government would like to ask for more support to help turn the economy around.
He said the intervention of the state-owned Chinese firms, such as the Chinese Civil Engineering Construction Company (CCECC) can adopt a funding option that blends grants with loans to reduce debt burden repayment.
A major constraint to business development in Nigeria, Udoma lamented, is infrastructure which is contained in the new China-Africa plan announced by President Xi JinPing during the Johannesburg summit.
Udoma said: “More can still be done by our partners in terms of grant support to infrastructure; we also believe that the Chinese private sector can improve on the areas of technology, agriculture and solid minerals.”
The government tried to woo the Chinese investors present at the forum, by stating: “Nigeria is open for investors and we have attractive incentives, our tax policies are investor-friendly; the current administration is committed to addressing the inhibiting factors including corruption that cripple business environment; our target therefore is to make Nigeria the preferred destination for investment in Africa.”
He said Chinese businessmen can benefit from opportunities from these incentives noting that Chinese direct investment in Nigeria stood at $2.5 billion last year. In specific terms, the China EXIM Bank has been very supportive of Nigeria’s development, the bank advanced a concessionary loan of $1.1 billion to support infrastructure development in the country and more than 200 Chinese companies are currently in Nigeria in various areas of the economy.
In his address, the Economic and Commercial Counsellor of the Chinese Embassy, Zhao Linxiang, said during President Muhammadu Buhari’s stay in China next month, “the two leaders will further discuss on how to fully implement the fruits of the summit including the 10 major cooperation plans and relevant financing arrangements and how to carry them out into projects which are conducive to Nigerian economic development.”
Speaking for the Chinese private sector, Vice President, Huawei West Africa, Mr. Cao Aijun, said: “In Nigeria, Huawei will continue to employ an open approach, remain trustworthy and dedicated, build partnerships, and constantly reflect on our work while sharing success with our customers.
“Huawei will continue to comply with local laws and regulations, ensure workforce and employment compliance, pay taxes, proceed with our localisation efforts, and develop the industry ecosystem with our local partners. To fulfill its corporate social responsibilities, Huawei will actively implement our talent development programme in collaboration with the Federal Government to boost employment.”
Source: The Nation
