China Eximbank provides $399.5 preferential buyer’s credit for Nigeria National Public Security Communication System Project

On August 7, 2010 the Government of Nigeria signed a $470 million commercial contract with ZTE for the Nigeria National Public Security Communication System Project. Then, on December 20, 2010, China Eximbank and the Government of Nigeria signed a $399.5 million preferential buyer’s credit (PBC) agreement for the Nigeria National Public Security Communication System Project (NPSCS). The proceeds from the PBC were used to finance 85% of the cost of the commercial contract with ZTE. The Government of Nigeria agreed to fund the remaining 15% ($70.5 million) itself. The PBC carried the following terms: 20 year maturity, 7 year grace period, and a 2.5% interest rate. The final maturity date of this loan is September 21, 2030. As of March 31, 2020, Nigeria’s Debt Management Office (DMO) reported that the China Eximbank loan for this project had fully disbursed. The Nigeria National Public Security Communication System Project had five subcomponents. The first subcomponent was a Global Open Trunking Architecture (GoTa) Sub-system, which is a CDMA-based voice and data telecommunications system with national coverage that operates through Mobile Switch Centers (MSCs) in Lagos and Abuja, 12 Base Station Controller (BSCs), 675 Base Transceiver Station (BTSs) and 21 Microwave repeaters. The GoTa system supported the deployment of 1.5 million subscriber lines. The second subcomponent was Video Surveillance Subsystem, which involved the installation of approximately 2,000 solar-powered CCTV cameras in Abuja and Lagos. The CCTV cameras were reportedly installed to monitor and reduce criminal activities including attacks, kidnappings and killings. The third subcomponent was a Video Conferencing Subsystem, which provided a platform for real time video conferencing for the Nigeria Police Force across all commands and the Force Headquarter. The fourth subcomponent was an E-policing Subsystem, which facilitated the deployment of E-policing databases. The fifth subcomponent was the Coalition Emergency Response subsystem, which provided a platform for national emergency communication using the short code of 911 for emergency and distress calls and 912 for anonymous security information. This subsystem also reportedly enabled the carried the security agencies to carry out coordinated responses. This project commenced in 2011 and it was completed in 2012, but its precise completion date is unknown. It has, however, been plagued by controversies and a whole host of problems. After the completion of the project, the communication network laid idle for many years because of the high cost of administering and maintaining it. The network was also badly vandalized. In reference to the Video Surveillance Subsystem, the News Agency of Nigeria (NAN) has reporting that “virtually all its infrastructure had been removed or destroyed by motorists through accidents.” In 2018, Nigeria’s federal government announced plans to revive the National Public Security Communication System, including the vandalized CCTV cameras in Abuja and Lagos.

Additional details

The Chinese project title is 尼日利亚国家公共安全通信系统 or 尼日利亚国家公共安全通信系统项目. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it records the maturity length of this loan as 19 years. AidData records the maturity length (20 years) that is reported by Nigeria’s Debt Management Office (DMO) in its “Status of Loans Obtained from China Exim As At March 31, 2020” publication.

Number of official sources

9

Number of unofficial sources

18