Nigeria: Messing Up Nigeria With Chinese Loans

8 August 2020
column

In sane climes, when a government signs any loan agreement, the interest of the citizens is prioritised. That has not been the case with loan agreements signed with China by Nigerian governments - past and present. Some critical things are signed away by our governments in these deals. Between 2010 and March 31, 2020, 11 of such loans have been obtained from the China Exim Bank. They all have a seven-year moratorium, 20 years tenor and obtained at 2.5 per cent interest rate, with varying maturity dates.

The clarifications by Patience Oniha, Director-General, Nigeria's Debt Management Office (DMO) on Wednesday left many questions unanswered. First, the Chinese determine the cost of projects (whatever figure put forward is accepted), give us loans tied to the projects and the projects must be executed by Chinese firms alone. We don't have a say in anything other than to repay the loans. This is the level my beloved Nigeria has degenerated. That was how the Chinese decided that the Lagos to Ibadan railway will cost $500 million. It is being executed by a Chinese firm in conformity with the agreement Nigeria reached with China. So, they import all manner of equipment and manpower for the project. Don't be surprised to find even clerks imported from China for the scheme. Our people are largely used as manual labourers.

...

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.