Idris Ahmed
19 June 2009
The Federal Government yesterday shifted from the Western countries and requested China to raise a $500 million bond to finance the budget deficit.
The bond, which is to be redenominated in Naira, is to help the country finance its fiscal deficit running into N1 trillion, the Economic Adviser to President Umaru Yar'adua said.
Dr. Tanimu Yakubu together with the Minister of Finance, Dr. Mansur Mukhtar and the Minister of Power, Rilwanu Babalola met in Abuja with a delegation of Chinese investors led by the Chairman of the Industrial and Commercial Bank of China (ICBC), Jiang Jianging.
Nigerian officials, led by the Minister of Finance said the Federal Government will give China the necessary assistance to invest in any sector of the economy to develop the country.
"Under this year's budget, the Federal Government has a fiscal deficit and there is a provision for a $500 million International Capital Market bond in Naira denomination", the Economic Adviser to Mr. President told the delegation.
He said: "Your bank can create avenue for the realization of this fund. Our traditional creditor said the fund is not readily available. This is an opportunity for you to warm your way into Nigeria's heart." Tanimu also requested China to invest in Nigeria's capital market to bail-out Nigerian banks. He said because of the economic meltdown, "Western countries that provide funds to our banks have withdrawn. This is an opportunity for you to replace them." The Finance Minister said China would benefit by investing in Nigeria because of the country's potentials.
He said: "We have a very strong financial institution, you can testify to this through your partnership with the Stanbic IBTC bank. I would like to encourage you to broaden your interest. I hope this mark the beginning of a new relationship between Nigeria and China."
The Minister of Power, Babalola requested China to help in developing Nigeria's long term power generation target of 50, 000MW. "Nigeria has set a short and medium terms target of 6, 000MW and 10, 000MW, for the long term goal of 50, 000MW, we want the ICBC to come in", the Minister said.
The Chairman of ICBC, Jianging said they will be willing to commence activity in the Nigeria's capital market. "Power project is very necessary, I will encourage my team to look at this area. I will encourage the Ministry of Power to visit China to discuss further", he said.
Jianging said ICBC is the largest bank in the world with an asset base of $1.8 trillion, a turnover of $16.4 billion and a capitalisation of $240 billion. He said ICBC in partnership with the Stanbic ICBC has introduced power station project worth $1.6 billion in Botswana to generate about 150MW.
Be the first to Write a Comment!
Copyright © 2009 Daily Trust. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
