Nigerian Minister of Finance, Kemi Adeosun (photo), plans to travel to Beijin next week to negotiate a $2 billion loan from the Chinese import-export bank (Eximbank of China) after postponing plan to reach out to the Eurobond market, Reuters reports on February 11, citing official sources.

“The finance minister, in the company of the central bank governor, is scheduled to be in China sometime next week to conclude negotiations on the $2 billion loan,” a government official told Reuters.

According to the official, any loan agreement signed during the visit of Mrs. Adeosun should have to be approved by the Nigerian president Muhammadu Buhari who plans for a State visit to China next March.

Other well informed sources from the Ministry of Finance said Nigeria, whose economy is currently suffering from fall in oil prices, has decided to shelve the $1 billion Eurobond it had planned for March due to markets turmoil and rising costs of Eurobonds issued by developing countries. 

Last mid-January, the Nigerian minister of Finance announced that her country sought to mobilize about $5 billion via foreign loans, a Eurobond included, to finance its budget deficit. Abuja has in fact to this end, started negotiations with World Bank and African Development Bank (AfDB) for concessional loans totaling $3.5 billion 

Leading oil producer in Africa, Nigeria derives 70% of its revenue from the commodity and about 90% of its export revenues from it.