Selected team of Nigerian ministers would travel to China to negotiate a loan, to supplement the budget. The team is to be headed by the Minister of Finance, Mrs Kemi Adeosun.
However, President Buhari would travel to China to sign the loan in March, Chinese TV website, cctv-africa.com reports.
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.