China offers Nigeria $6 billion loan for infrastructure

China has offered Nigeria a loan worth $6 billion to fund infrastructure projects, the Nigerian foreign minister said on Tuesday.

The announcement came as both countries signed a currency swap deal to boost trade. Nigeria has been in talks with China on an infrastructure loan for months.

Nigeria is Africa's largest economy and its top oil producer. But its public finances have suffered as the price of crude oil dropped around the world.

Although President Muhammadu Buhari wants to triple capital spending in 2016, he also needs to plug a projected deficit of $11.1 billion.

"It is a credit that is on the table as soon as we identify the projects," Nigerian Foreign Minister Geoffrey Onyeama told reporters after Buhari met Chinese President Xi Jinping. "It won't need an agreement to be signed. It is just to identify the projects and we access it."

There was no immediate comment from China.

Lin Songtian, director general of the Chinese foreign ministry's African affairs department, had earlier said Nigeria would be able to benefit from a $55 billion package for Africa, which mostly consists of concessional grants or export lines.

The Industrial and Commercial Bank of China Ltd (ICBC) , the world's biggest lender, and Nigeria's central bank also signed a deal on yuan transactions.

"It means that the renminbi (yuan) is free to flow among different banks in Nigeria, and the renminbi has been included in the foreign exchange reserves of Nigeria," Lin said.

Nigeria had said it was looking at panda bonds - yuan-denominated bonds sold by overseas entities on the mainland - to fund the deficit, saying they that would be cheaper than Eurobonds.

TRADE

Nigeria's central bank has said it plans to diversify its foreign exchange reserves away from the dollar by switching some into yuan. It converted up to a tenth of its reserves into yuan five years ago.

Lin said a framework on currency swaps has been agreed with Nigeria, making it easier to settle trade deals in yuan. China has signed similar swap agreements with countries ranging from Kazakhstan to Argentina to promote wider use of its yuan.

Beijing also signed agreements to develop infrastructure in Nigeria, part of a drive to deepen its ties with Africa.

ICBC agreed a $2 billion loan to Dangote, the company owned by Africa's richest man, Aliko Dangote, to fund two cement plants it plans, he told Reuters.

China's Xi told Buhari there was huge potential for economic cooperation in areas like oil refining and mining, according to Xinhua, China's official news agency.

In a speech to business leaders, Buhari said both countries wanted to work together in agriculture, fishing and the manufacturing of cars, construction materials and textiles.

Reuters

Video - President Muhammadu Buhari visits China

Nigeria's president, Muhammadu Buhari is on a five-day state visit to China, which began on Monday. He's expected to conclude negotiations over a 2 billion US dollar low-interest loan with the Chinese government. The money will help Nigeria fund its infrastructure projects, as well as finance a deficit on its 3 trillion Naira, or 15 billion US dollar, budget. Activities will be held to celebrate the 45th anniversary of the establishment of diplomatic ties. The visit is an important one for Nigeria. Our Lagos correspondent Deji Badmus told us about Nigeria's economic situation, and how working with China can benefit the West African nation. Earlier we spoke to CCTV's Su Yuting in Beijing for more on President Buhari's schedule during this state visit.

Related story: China wants to buy more oil from Nigeria

FIFA sends warning to Nigeria to reinstate sacked officials or get banned

Football's world governing body Fifa issued a warning to Nigeria on Monday to either reinstate its sacked Nigeria Football Federation (NFF) officials or face a suspension.

It follows last week's regional high court ruling that Chris Giwa should be installed as the NFF's President and that the Fifa-recognised head, Amaju Pinnick, be sacked.

Fifa warned that the country could face sanctions - including a ban - if a decision of the Federal High Court in Jos from Friday is implemented.

In a letter dated 11 April 2016, Fifa's acting secretary general Markus Kattner said the ruling by a Jos federal high court is classed as "interference."

"The decision of the Federal High Court in Jos, if implemented, would likely be considered as interference in the internal affairs of the NFF and the case would be brought to the highest authorities of Fifa for consideration of sanctions, including the suspension of the NFF," the letter read in part.

"All members associations have to manage their affairs independently and with no influence from third parties. In addition and according to article 68 of the Fifa Statutes, recourse to ordinary courts of law is prohibited unless specifically provided for in the Fifa regulations.

"Furthermore, it is the duty of each member association to ensure that these provisions are implemented by its members and possibly take sanctions against those which fail to respect these obligations.

Fifa also acknowledged that it is the second time that Chris Giwa has resorted to legal action as well as a futile appeal at the Court of Arbitration for Sport (Cas) in his attempt to run the country's football affairs.

"We would like to stress that the plaintiff in question already filed an appeal in relation to the same matter with the highest judicial Sport authorities, the Court of Arbitration for Sport (CAS), and that said appeal was dismissed by the CAS on 18 May 2015."

The NFF has appealed against the court ruling, insisting that Pinnick is still the head of the federation while Giwa's faction and all other non-NFF staff were denied access into the football house by police in the capital Abuja on Monday.

Fifa, however, has taken a dim view of the development and warned that Nigeria risked suspension if the sacked officials are not reinstated as soon as possible.

The ongoing power struggle means Nigeria's Olympic team is at risk of being banned from Rio this year, and the Super Eagles could be denied a chance to qualify for the 2018 World Cup in Russia.

The qualifying draw takes place in June.

BBC

Related story: Video - Former Nigeria Super Eagles coach Sunday Oliseh shows proof of malpractice by NFF

Turkish ship crew kidnapped by pirates off the coast of Nigeria

Six Turkish members of a cargo ship's crew have been kidnapped by pirates off the coast of Nigeria, a spokesman for the Nigerian navy said on Monday.

The crew members of the merchant tanker M/T Puli were abducted some 90 miles from the coast at around 1:30 a.m. (0130 GMT) on Monday, navy spokesman Chris Ezekobe said.

"Six crew members were abducted. They included the captain, the chief officer and chief engineer," Ezekobe said. "They were all Turkish."

The spokesman said the navy was going to board the vessel to speak to other crew members.

Last month, Nigeria and Equatorial Guinea agreed to establish combined patrols to bolster security in the Gulf of Guinea. The gulf is a significant source of oil, cocoa and metals for world markets, but pirates pose a threat to shipping companies.

They target oil tankers, usually seeking hostages for ransom and fuel to sell. Security analysts say the pirates have emerged from militant groups in Nigeria's oil-producing Niger Delta, such as the Movement for the Emancipation of the Niger Delta.

A lawyer for Kaptanoglu Group, an Istanbul-based shipping company, said the crew members abducted from the M/T Puli included the ship's captain and that those left behind were unharmed, according to the newspaper Hurriyet.

The tanker was carrying liquid chemical fuels and was traveling to Cameroon, Hurriyet said, citing the lawyer, Fehmi Ulgener.

Reuters

Video - Fuel crisis crippling Nigeria

Nigeria remains at a virtual standstill as more suppliers run out of fuel and motorists spend hours on end looking for the commodity. While the country is Africa's biggest oil exporter, its local refineries remain underdeveloped meaning that it must import its own fuel for domestic consumption. Inefficiencies in that system perennialy grind operations to a halt.