ECONOMY & POLITICS

Nigeria is falling into China’s debt trap
Nigeria lacks accountability, transparency, and responsibility to refund its loans, according to Dr Bongo Adi, the Director of Centre for Infrastructure Policy Regulation and Advancement (CIPRA) at the Lagos Business School.

Nine days ago, the House of Representatives mandated some of its committees to investigate all China-Nigeria loan agreements from 2000 to date. The intention of the green chamber here was to
Why it matters…
Igbakpa argued that the agreement should be investigated as there were global concerns about the alleged fraudulent, irregular, and underhand features of Chinese loan contracts with some African countries, which had resulted in a new form of economic colonialism foisted by China.

Meanwhile, Nigeria has obtained 17 Chinese loans to fund different categories of capital projects, and Nigeria will still be servicing the Chinese loans till around 2038, which is the maturity date for the last loans obtained in 2018.

The lawmakers’ concern is worthy to be considered. Nairametrics found that the history of Chinese loans, especially in Africa, is a growing concern. Several observers, including some of the United States Representatives, have warned many nations on what they described as Chinese Debt trap diplomacy, as the Asian nation allegedly used finance as a weapon in many developing countries.

Victims of Chinese alleged Debt trap diplomacy
Since all Chinese loans are tied to infrastructural developments, some of the African nations have had to forfeit their stakes in the infrastructure, which they used as collateral, after they defaulted. For instance, $7.4 billion of Zambia’s total $8.7 billion foreign debt is owed to China, representing a large debt burden, given the relatively small size of Zambia’s economy. It was reported in late 2018 that the Zambian Government was in talks with China that might result in the total surrender of the state electricity company ZESCO as a form of debt repayment since the country had defaulted on the plethora of Chinese loans for Zambia’s infrastructure projects.

Also, Kenya may soon lose its largest and most lucrative port, Port of Mombasa to its creditor (China) after it defaulted in the refund. This could force Kenya to relinquish control of the port to China.

One of the most cited examples of alleged debt-trap diplomacy by China is a loan given to the Sri Lankan Government by the Exim Bank of China to build the Magampura Mahinda Rajapaksa Port and Mattala Rajapaksa International Airport. The state-owned Chinese firms’ China Harbour Engineering Company and Sinohydro Corporation were hired to build the Magampura Port at a cost of $361 million, which was 85% funded by China’s state-owned Export-Import Bank at an annual interest rate of 6.3%. Due to Sri Lanka’s inability to service the debt on the port, it was leased to the Chinese state-owned China Merchants Port Holdings Company Limited on a 99-year lease in 2017.

https://www.google.com/url?q=https://nairametrics.com/2020/05/21/china-nigeria-loan-nigeria-is-falling-into-chinas-debt-trap/&sa=U&ved=2ahUKEwipqtLoq_zqAhWK6aQKHbsxBzEQFjAeegQIBxAB&usg=AOvVaw1oFPDyDgyhGEfIwU3H6fiv

Interesting

Why are ipob pigs celebrating the rumour of Nigeria loosing her sovereignty to China if we failed to pay back the loan?



Amaechi debunked the false news yesterday nah, China will only take over the Train PROVIDED we failed to repay...

In addition, $1.3b is a very small money, infact the joint contribution of Lagos Ogun and Oyo would pay this small loan.

You are citing instances where creditors defaulted, we are not planning to default, our GDP is big enough to pay our Debt.


I AM DONE TALKING

The North will pay will their vast land

PDP was earning and stealing it APC is earning plus borrowing and stealing them i think APC is a Plague

denko:
The North will pay will their vast land

You so wish, the first thing they would seize would likely be our sea ports or oil wells to recover their money fast if we default.

Do you know much we have borrowed from China?

Nigeria has a bigger GDP than South Africa.

The funds South Africa used to organise 2010 world cup (construction of new stadiums e.t.c) is far bigger than these loans we took from China.

Invest in Bitcoin don't invest in shitcoin so you won't have to pay these huge debt.










https://www.nairaland.com/6028853/new-meme-naira-new-shitcoin

How much has Nigeria borrowed from China? Some of you don't even know the enormity of this.

LukasPodolski:
Why are ipob pigs celebrating the rumour of Nigeria loosing her sovereignty to China if we failed to pay back the loan?



Amaechi debunked the false news yesterday nah, China will only take over the Train PROVIDED we failed to repay...

In addition, $1.3b is a very small money, infact the joint contribution of Lagos Ogun and Oyo would pay this small loan.

We are Igbos.. We share fake news and hatred ... We inherited it from our fathers..

JAMO84:
You are citing instances where creditors defaulted, we are not planning to default, our GDP is big enough to pay our Debt.


I AM DONE TALKING

Our economy ia NOT big enough to big our debts.

It is was so, Nigeria will not be spending more than 80% of our revenue to pay INTEREST on our debts.

You had better woken up and smell the coffee

17 different loans propably with hidden sovereignty clauses! We call it loans but China believes they have acquired a piece of land in West Africa with those loans. They know we can't pay back, China have already arrived! No one can really kick them out, at least not in the next 100 yrs, China is a country of 2billion, they are always on the look out for where to colonize and shift some of their populations

The Nigeria we all know have never really been able to pay back any of her loans, like since 1960! Will they start paying from this loan? We all know the answer is a big fat NO.
I really wonder what Buhari and his fellow daft kleptomaniacs were thinking, this is why you see people complaining of Buhari, if he is not gonna perform , at least let's not be sold out as slaves completely.

I love this Chinese government, how I wish I was born to one of them.

Anyway I'm not, but I have a country, let them come at the expiration of the debt to tamper on our property, if the agreement is defaulted, by then some of the slowpokes we have as leaders may have been gone, the younger generation will be left to deal with this, then we shall know who is smarter, China or Nigeria. lol, the future is going to be interesting.

Cry me river

When recession hit the land during Buhari's first tenure, yet he promised you next level and you all were rejoicing, now he has sold/mortgaged our sovereignty and we are still hypnotised!

Enjoy your next level in pieces.

If you think the loans are bad, provide us with funds to develop our infrastructure.

If we judiciously use the loans, nothing is going to happen. Worst case scenario, they will take over the trains and collect tolls but we ordinary people will be riding it still

Propagandists.