Nigerian Projects Stall as Chinese Loans Dry Up

President Buhari's legacy could be marred by Beijing's waning appetite for costly public works abroad

- William Clowes, with Lucille Liu

Nigeria’s outgoing president promised to leave a legacy fashioned from concrete, stone, and steel. Instead, billions installed financing from China is forcing him to temper his aspirations to seed the country with ambitious public works.

Muhammadu Buhari, a former military ruler, was elected to lead Africa’s most populous nation in 2015 on pledges to tackle a deadly Islamist insurgency, clamp down on corruption, and build critical infrastructure. With only a year left in office, it appears he put too much faith in the appetite of Chinese lenders to fund the roads, railways, and power plants that could transform Nigeria. “It is obvious that things are below expectations,” says Ovigwe Eguegu, a Nigerian policy analyst at Development Reimagined, a Beijing-based consulting firm. “It would greatly help the ruling party’s chances in the polls next year if they deliver on these major infrastructure projects.”

Although Buhari has scored significant victories, more than $25 billion worth of projects that were meant to be completed before his departure are either far behind schedule or yet to start.

Africa’s largest economy, where about 40% of its 200 million people live in poverty, is crying out for investment in infrastructure to spur growth and diversify beyond oil production. The government generates barely enough revenue to service the nation’s debt, trapping it in an endless cycle of borrowing. Like many developing countries, it’s turned to loans from Chinese state-owned banks to finance major public works.

“Buhari got into power and looked at his options at how to provide infrastructure to Nigeria,” says Abdul-Gafar Tobi Oshodi, a political science lecturer at Lagos State University. “China is known for that. China is the leading state financier in Africa, not only in Nigeria.”