China EXIM Bank, CHEC vital to Nigeria’s infrastructure development – Expert

Professor Sheriff Ghali Ibrahim, Director of the Center for Contemporary China-Africa Studies, has commended the China Export-Import (EXIM) Bank for its contributions to fostering rapid infrastructural development in Africa, particularly in Nigeria.

Prof. Ghali, who is also the Head of the Department of Political Science and International Relations at the University of Abuja, gave the commendation while speaking to the media on the successful expansion of the 5.4km Abuja-Keffi expressway and the dualization of the 220 km Keffi-Akwanga-Lafia-Makurdi road project by China Harbour Engineering Company (CHEC) Nigeria Limited.

The $542 million road projects were co-funded by the federal government of Nigeria and a concessionary loan from the China EXIM Bank. The EXIM Bank provided 85% of the contract sum, while the Nigerian government contributed 15%.

The project, which commenced on April 1, 2019, was divided into phases for ease of implementation. Phase I involved the dualization of the Keffi-Akwanga-Lafia-Makurdi road, while Phase II included the dualization of the 9th Mile Enugu-Otukpo-Makurdi road project.

Prof. Ghali told reporters that the concessionary loan given to Nigeria by the China EXIM Bank for the successful execution of the projects represents the best contractual agreement any country can get. He commended the EXIM Bank for charging Nigeria a low interest rate.

He called on the EXIM Bank to continue financing infrastructural projects across Nigeria.

“I must commend the China EXIM Bank for charging Nigeria very low interest rate. We’ve seen so many projects of the Belt and Road Initiative financed by the China EXIM Bank in Ethiopia, Tanzania, Zambia, Lesotho, Botswana, South Sudan, Uganda, and so many other places. With these favourable terms, I call on the EXIM Bank to continue financing key infrastructural projects across Nigeria. This is because we need more infrastructure in Nigeria due to our huge infrastructure deficit,” he said.

The foreign policy expert said the road project, a major artery connecting the Federal Capital Territory, Abuja to Nasarawa, Benue, and Enugu states, has economic, social, and security significance in line with China’s Belt and Road Initiative. He highlighted the project’s economic benefits, such as facilitating agricultural activities and agribusiness, and its positive impact on security by reducing the activities of bandits and terrorists.

Prof. Ghali said: “Economically, the road project will pave a new route, as well as divergent areas for people to achieve their economic prosperity, sovereignty, and economic independence. We’re going to see more facilitation in economic engagement, such as agriculture. The dualization of this vital road will facilitate more agricultural activities and agribusiness as locals can now transport their farm produce to the market with ease and in good time. The project will also improve the profit margin, revenue, and standard of living of the people in this region because of the increase in commercial and economic activities.

“In the area of security, this project will lead to a drastic reduction in the activities of bandits and terrorists who usually lay siege and blockade to attack road users when the road is in a deplorable stage. But the road is smooth now, and we can vividly see a reduction in tension, threat of insecurity, banditry, and kidnapping along the road. Drivers, commuters, and motorists now find it easy to move, thus making it difficult for criminals to attack innocent Nigerians.

“The road will also promote social interaction. Before now, people have been wary of passing through this particular road because of the high risk of road accidents. But now, the beauty of the road, the simplicity, and the reduction in the distance will boost social interaction. People will now be motivated to visit their friends and loved ones living along this particular route.”

Prof. Ghali commended China Harbour for completing the project in a record time of four years and deploying the most advanced engineering technology and equipment in executing the project. He stated that the Keffi-Akwanga-Lafia-Makurdi Road Project is expected to bring hundreds of millions of dollars in economic benefits to Nigeria and create thousands of direct and indirect jobs during the next 25-y8ear concession period.