Nigeria partners with China to fund new projects

Deutsche Welle, 12 September 2012

Nigeria's government says it's to borrow a large amount of money from China to fund new infrastructure. It's the latest in a string of cheap loans China has made to African countries.

The deal will see a light railway built to service Nigeria's capital, Abuja, as well as four new airport terminals.

Those projects together are expected to cost around $1 billion (775.2m Euros), and will be funded through a low-interest loan from China's Export-Import Bank (Exim). One part of the new railway line, due to be finished in 2015, will link up with the international airport, while another will link regions around the capital.

The overall aim is to help those living on Abuja's fringes to come into work, according to Nigeria's Finance Minister.

"The light rail in Abuja will improve transportation for all residents, especially the working class," said Ngozi Okonjo-Iweala, speaking at the signing agreement with Exim in Beijing.

A separate $100 million (77.5m Euros) has been earmarked for projects aimed at improving Internet capability in Nigeria and giving young people better access to technology.

Tactics by China

Offering cheap loans to resource-rich countries in Africa has become a common move by China in recent years.

It's able to use these types of agreements to cement relationships with the continent, and in turn subsidise its construction industry with oil and raw materials such as uranium and copper from Africa.

jr/ipj (Reuters, AP)