(Ecofin Agency) - Nigeria has been offered a $4.5 billion loan by China for agricultural machinery and infrastructure, according to Zamfara State Governor, Abdulaziz Yari (photo).

“China is giving us a credit line of $4.5 billion for the procurement of strategic machinery for rural development and agriculture,” Yari said after a meeting with the President and the Minister of Agriculture.

The state Governor explained that the loan is expected to be repaid within a 20-year period at an interest rate of 1%. The offer is however subject to final approval by lawmakers.

Commenting on the development, Agriculture minister, Audu Ogbeh, said the President was briefed on developments following their visit to China last year April as well as on the progress made so far with negotiations on issues related to agricultural machinery.

Nigeria is currently in its first recession in 25 years driven by low oil prices. As a result the Federal Government has prioritized the development of the agriculture sector as a way of diversifying the economy away from crude oil.

Anita Fatunji