Geeoriginal:
The real deal is the fact that China got to choose which asset they will take over if Nigeria default. It is wrong for a sovereign country to give unilateral collateral of all her asset to secure a paltry loan. If I need a bank loan, I can say, my collateral is my house in Wuse Abuja, if I default, the bank can only take over the Abuja house and will not touch the one in Lagos or Kaduna neither will they be able to touch my car or any of my companies. Nobody tells a bank to pick whatever the bank want in case of a loan default.
Let Nigeria be wise, this politicians are not our friends. Unfortunately, China will still bring the Engineers, technician even drivers for the projects.
We shall overcome one day.
CAVEAT: I no get house for those places mentioned o, na hypothetical analogy.

King44:
and you think they would go for something like that.

Those people are not dumb like Nigerian politicians, those Chinkos would rather go for something that might be overlooked by us now but in the long run it would hold us by our balls.

They would think and analyse before picking, unlike Nigeria politicians that doesn't think.

SmartyPants:


It has to still go through an international arbitration panel so yes they can choose to want this or that, but no they don't have a blank cheque.

dustydee:

Let's assume they choose a gold mine in Zamfara (The value of the deposit has to be commensurate with the loan, which makes it unlikely that they can take over the mine because the mine will be worth more). The FG can enact a law that mandates foreign mining companies to pay a say 90% tax on all the value of gold mined.

RealEzee:
True Talk, hmm well like u said let's assume, but 90% tax? Hmm, well Sha it's assume we're assuming.

what if the same govt use it to divert the earnings by under estimating nko, hmm Naija govt no dey ever dey straight forward, just saying sha .

dustydee:

I know a lot of us do not trust our government, but Nigeria has some of the best and intellectual minds in the world. If we want to truely do something well, we are very capable of doing it. Some of our leaders may be corrupt but corruption has it's limits and I do not see any leader who will be bold enough to sell the country although this government seems to be edging close to that.
I am surprised no one is talking about the recent deal to get $1.5B in advance from Vitol and another company in exchange for 30k barrels of oil per day for 5 years. That is a deal that I do not think favours the country. It comes to about $27 per barrel which looks like a very bad deal

Esseite:


This is the major problem here... they could pick your NNPC, oil wells, mining sites etc.. it's at their discretion with no holds barred.

Interest and loan recovery could run for years along as they keep declaring loss..

post=92510555:
.......Lion of Ubima.

dustydee:
In Nigeria, you can cause any controversy because majority of the people do not read and only go by the headline. Nigeria is a sovereign state and the waiver in the contract was only to guarantee that the debtor will get paid, which is normal. For those talking about oil wells and mining sites being taken over, that will be foolish on the Chinese part because the Nigerian government can render those assets useless if they are taken over by simply passing laws (Tax, operational etc.) that will inhibit them from getting full value from those assets. The Chinese are more likely to go after assets outside the country if we default.

dustydee:

Let's assume they choose a gold mine in Zamfara (The value of the deposit has to be commensurate with the loan, which makes it unlikely that they can take over the mine because the mine will be worth more). The FG can enact a law that mandates foreign mining companies to pay a say 90% tax on all the value of gold mined.

Saintp:


Remember you are dealing with China not one liberal democracies with some checks and balances. Whatever China wants China gets through tactical means. There is no court, civil society, opposition that can stop China communist party.
China wants more than those railways and that is why they crafted an agreement that enables them to grab any asset other than military and diplomatic assets.
Make no mistake, China is a rugged as Nigeria in a cunning way, the difference is they are intelligent and strategic.
Of what use is the loan sef? The majority of the money is still going back to China. They used their contractors, raw materials and manpower and yet we are owning them. It could have made sense if we collected the money and used Nigerian contractors, raw materials and manpower to do the job. It could have helped the economy.
When you are doing something with someone where you don't have any leverage, you have to be careful. Right now, Nigeria does not have any leverage against China so they are at the mercy of China.

Esseite:


This is the major problem here... they could pick your NNPC, oil wells, mining sites,
Nigerian port etc.. it's at their discretion with no holds barred.

Interest and loan recovery could run for years as along as they keep declaring loss and your Naira keeps loosing value.

dustydee:
In Nigeria, you can cause any controversy because majority of the people do not read and only go by the headline. Nigeria is a sovereign state and the waiver in the contract was only to guarantee that the debtor will get paid, which is normal. For those talking about oil wells and mining sites being taken over, that will be foolish on the Chinese part because the Nigerian government can render those assets useless if they are taken over by simply passing laws (Tax, operational etc.) that will inhibit them from getting full value from those assets. The Chinese are more likely to go after assets outside the country if we default.

Amotolongbo:


https://thenationonlineng.net/agbakoba-quakers-differ-on-china-loan-sovereignty-clause/amp/?__twitter_impression=true

Esseite:


This is the major problem here... they could pick your NNPC, oil wells, mining sites,
Nigerian port etc.. it's at their discretion with no holds barred.

Interest and loan recovery could run for years as along as they keep declaring loss and your Naira keeps loosing value.