The Nigerian telecoms industry is set to receive a cash injection worth $328 million from China, as the Asian powerhouse looks to help with the development of infrastructure in the African country.
Reuters reported that Exim, a Chinese institutional bank which is chartered to implement state policies, will loan Nigeria the cash as the two countries strengthen diplomatic ties.
The agreement was part of “the current [Nigerian] administration’s commitment to incorporating the development of information and communications technology into national strategic planning”, according to a statement seen by Reuters.
Indeed, the agreement is one of many Chinese loan deals with Nigeria since President Muhammadu Buhari was elected in 2015.
For Nigeria, the cash boost will help with the government’s aims of improving technology infrastructure to boost growth and create jobs. Poor infrastructure is considered as a major challenge for companies operating in Nigeria, with the country relying mainly on oil sales for its economy.
And for China, strengthening ties in emerging markets, such as those in Africa, could be vital for the country’s companies’ future growth amid tensions with several other nations.
Huawei has been banned from supplying telecoms equipment in the US due to national security concerns, while Huawei and ZTE were also recently barred from bidding for 5G infrastructure contracts in Australia. Last week, Japan was reportedly also considering restrictions on the vendors, while Huawei is also facing security scrutiny in the UK.Subscribe to our daily newsletter Back