Wednesday 10 July 2013

Low-Interest Rate In Exchange For Increasing Oil Supply


Nigerian President Goodluck Jonathan and Chinese President Xi Jinping presided Wednesday over the signing of accords between their governments to facilitate $1.1 billion in low-interest loans for much-needed infrastructure in Nigeria.
China, which is increasingly looking to Africa for oil and other natural resources, is offering Nigeria loans to help fund airport terminals in four cities, roads, a light-rail line for its capital, a hydropower plant and oil and gas infrastructure.
Nigerian Finance Minister Ngozi Okonjo-Iweala says the loans being finalized during this trip are part of $3 billion approved by China at interest rates of less than 3 percent. Chinese companies are already building roads across Nigeria in contracts worth $1.7 billion.

China's demand for crude oil produced in Nigeria is expected to rise tenfold to 200,000 barrels a day by
2015, according to information provided by a team accompanying the Nigerian president.
On Thursday, Jonathan will meet Chinese Premier Li Keqiang and representatives of companies including state oil company Sinopec and telecom equipment makers Huawei and ZTE.

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