The Nigerian government has approved a $652 million financing package from the China Exim Bank to construct a vital road project. This road will serve as a key evacuation corridor, facilitating the movement of goods from the Lekki Deep Sea Port, the Dangote Petroleum Refinery—Africa’s largest with a refining capacity of 650,000 barrels per day—and its adjacent fertiliser plant to multiple southern states.
The funding was approved by the federal executive council led by President Bola Tinubu, as announced by Public Works Minister David Umahi. The project is part of China’s broader investment strategy in Nigeria, which includes substantial funding for power, rail, and road infrastructure.
Nigeria, Africa’s most populous country and the continent’s biggest oil producer, currently owes over $5 billion to China, making it Nigeria’s largest bilateral creditor. This development underscores the continued strategic partnership between Nigeria and China in infrastructure development.
The road project is expected to enhance Nigeria’s transportation infrastructure, reduce logistics costs, and boost economic activities in the region. However, it also raises concerns about Nigeria’s growing debt profile and the need for prudent debt management strategies.
