Nigerian President Muhammadu Buhari will visit China next month to seek a $2 billion loan to cover the country's record budget deficit.

According to reports, Nigerian Finance Minister Kemi Adeosun will be headed to the mainland next week as part of Buhari's advance party to negotiate the terms of the loan.

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Nigeria needs around $2 billion from China after it shelved a plan to borrow $1 billion from the Eurobond market.

                                                   $2 billion loan

A Nigerian official told Reuters that any agreement for the loan reached by China and Nigeria during Adeosun's trip could be signed by Buhari in Beijing next month.

"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," said a Nigerian official, who requested  anonymity.

The official said negotiations have been going on for some time now, but the two sides are yet to agree on the terms of the loan.

                                                  Negotiation table

The official expressed optimism that next week's visit of the finance minister to Beijing will help to iron out the kinks in the negotiation table and the loan will be signed in time for Buhari's visit to China in March.

Nigeria's central bank governor is yet to confirm his presence in the advance party, who will be traveling to China next week headed by Adeosun.

Nigeria needs to raise $5 billion to cover its huge 2016 budget deficit. Reports said the deficit is projected to hit 3 trillion naira ($15 billion) due to the government's focus on infrastructure spending despite the heavy losses it has incurred in export revenues.

                                                Power plants and transport

Buhari, who assumed the Nigerian presidency in 2015, has vowed to turn the economy of the West African nation around by investing more in power plants and transport.

Reports said the President had asked China last December to help the country by funding its railway and power projects.

As a follow up measure, Adeosun was in Beijing last week and has convinced the Nigerian President to borrow money from the Export-Import bank of China.

TagsNigerian President Muhammadu Buhari, china, $2billion loan, Eurobond market