Posted on: 06:24 Thu, 25 Feb 2016



An advance team headed by the
finance minister is expected to
travel to Negotiate the loan and
President Buhari would travel to
China to sign the loan in March,
Chinese TV’s website, cctv-
africa.com has reported.

According to the report “President
Muhamadu Buhari recently
presented an ambitious budget to
Nigeria’s parliament. At 30 Billion
dollars, it is the highest Budget
proposal in Nigeria’s history.

“Analysts think Buhari’s
administration is attempting to
spend its way out of recession by
investing a huge chunk of the
budget in infrastructure but he
doesn’t have access to funds for
that.

The deficit stands at $5 billion for
now but it could rise up to $15 as
Buhari’s administration plans to
spend billions on infrastructure
and uplifting social service.

“Nigeria’s economy has been
contracting consistently for more
than a year – Rapidly falling oil
prices taking a toll on the
economy.Crude oil accounts for
90% of the country’s exports and
70% of its earnings.

“Development expert Jayi Gaskia
thinks Nigeria needs the loans for
immediate budgetary support but a
major bailout could be imminent
unless a resurgence in crude oil
prices happens soon.