Nigeria’s lower House of Parliament, the House of Representatives has taken an initiative and mandated its relevant house committees to investigate all loan agreements Nigeria struck with China between the year 2000 up till date, with the aim of ascert...
nigeria, china, debt
Nigeria’s lower House of Parliament, the House of Representatives has taken an initiative and mandated its relevant house committees to investigate all loan agreements Nigeria struck with China between the year 2000 up till date, with the aim of ascertaining the viability of these facilities, in order to regularize and renegotiate them, especially as Nigeria is soon expected to slip into recession.
Nigeria has obtained 17 Chinese loans to execute various capital projects in the country and currently owes the Asian giant a whopping $3.1 billion which it will service till around 2038, which is the date these loans obtained since 2018 will mature. In February this year, the Nigerian government went for another $17 billion loan from China after the World Bank and the African Development Bank (AfDB) refused to show much interest in Nigeria during the recession, thus giving the lawmakers genuine reason to be concerned, especially with China’s track record when it comes granting loans in Africa.
China is being accused by skeptics of Debt trap diplomacy, where it allegedly uses finance as a weapon in many developing countries since all these loans are bound to infrastructural developments. Some of these nations end up handing over their stakes in the infrastructure which they use as collateral once they default, a typical example is in the case of Zambia’s electric company Zesco, Kenya’s Port of Mombasa and Sri Lanka’s Magampura Mahinda Rajapaksa Port and Mattala Rajapaksa International Airport. Nigeria’s legislators have now moved and adopted a motion that necessitates the review and renegotiation of all existing China-Nigeria loan agreements in order to avoid this new form of economic colonialism foisted by the Asian giant