Buhari to travel to China for $2 billion loan

An advance team headed by the finance minister
is expected to travel to Negotiate the loan and
President Buhari would travel to China to sign the
loan in March, Chinese TV's website, cctv-
africa.com has reported.
According to the report "President Muhamadu
Buhari recently presented an ambitious budget to
Nigeria’s parliament. At 30 Billion dollars, it is the
highest Budget proposal in Nigeria’s history.
"Analysts think Buhari’s administration is
attempting to spend its way out of recession by
investing a huge chunk of the budget in
infrastructure but he doesn’t have access to funds
for that. The deficit stands at $5 billion for now
but it could rise up to $15 as Buhari’s
administration plans to spend billions on
infrastructure and uplifting social service.
"Nigeria’s economy has been contracting
consistently for more than a year – Rapidly falling
oil prices taking a toll on the economy.Crude oil
accounts for 90% of the country’s exports and
70% of its earnings.
"Development expert Jayi Gaskia thinks Nigeria
needs the loans for immediate budgetary support
but a major bailout could be imminent unless a
resurgence in crude oil prices happens soon.