The Peoples Republic of China has said it will lend Nigeria $4.5 billion to boost local agriculture. The loan is to enable Nigeria purchase farming tools including tractors, bulldozers, graders, irrigation pumps, amongst others…Full Article: AllAfrica Apr 2017

Key Point

  • The US$4.5 billion loan will have a 20 year repayment term and moratorium of 5 years if needed. The loan will be used to increase Nigeria’s farm mechanization and boost its rural infrastructure (i.e. constructing rural earth dams and developing its irrigation system).

ChinaAg Comments

  • In October 2016, Chinese investors and government officials from northern Nigeria’s Bauchi State signed a MoU. The MoU was signed after a team of Chinese investors carried out a three day tour of Bauchi State. The Chinese delegation was led by a representative of the China General Engineering and Construction Company.
  • In August 2016, China’s Wuhan Longfecund Agriculture Development announced it would promote sweet corn cultivation and construct a feed mill to produce glucose syrup in Cross River State, southeastern Nigeria.
  • In June 2016, a five-day training program was carried out by the China Geo-Engineering Corporation (CGC) to train 40 officials from Nigeria’s Ministry of Agriculture and Rural Development. The training covered rice production, vegetables cultivation, soil/fertilizer management, seed production, farm machinery training, and plant protection practices.
  • In August 2015, two Chinese companies stated they would invest in northern Nigeria’s agriculture sector. The first, China Geo-Engineering Corporation (CGC) announced plans to develop 9,000 ha of agricultural land in Jigawa. The company has previously carried out road construction and irrigation projects in Jigawa’s largest city, Hadejia. The second, China’s Lee Group, which produces shoes in Jigawa, announced plans to expand into sugar production, molasses and seasoning (e.g. spices) in the near future.
  • In September 2014, the coordinator of the World Bank’s Third National Fadama Development (Fadama III) Project in Nigeria announced a Chinese company was going to establish a cassava processing plant in Yakurr, Cross River State, southeastern Nigeria.

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