China plans to scam Nigeria

By Max Amuchie

I'm not a finance expert. Just got this. How true is it?

Some Nigerians are jubilating over $2b loan from China and the so called Yuan trading deal. - Akani Balogun

China wants to lend us 2 billion dollars, but they want to give us in Yuan and not the dollar itself.

They are not handling us cash, but service exchange; meaning if we want to buy iron rod, we buy it from Chinese company and they pay the company on our behalf. If we want to construct railway, they will construct it for us and take the money out of the loan. In the end, we are bound to award contracts to them, cutting out competition from others and fairplay to others(non Chinese company can't bid or compete to reduce the cost.) They get to value the contract and determine the price, meaning they can sell something worth 200 Naira for N2000 and we don't have a choice 'cos it is on credit.

The worst of it is that China want us to pay back in dollars, that is not all, we are moving our foreign reserve to fake currency(Yuan) a currency that is manipulated openly by the Chinese government. Did anyone ask Lamido Sanusi what happened to some of our reserve he moved to Yuan few years ago? They sold us Yuan at 4 to a dollar, only to devalue their currency few weeks latter to 9 Yuan per $.

Many Nigerians don't know that even Chinese company don't want yuan, nobody want it, Chinese foreign reserve is in dollars, China is the largest holder of US bond, they want dollars by all means.

Also, China have more lobbyists in Washington DC than any other nations on earth, begging Washington politicians to always make policy in their favour, how can such country save us from USD?

Has anyone asked why China hasn't built any refinery in Nigeria?? They have the money, they want the profit, but never did it.

If China does anything against Washington interest in Nigeria, USA have too much political power over China, they will just tell them not to do it. China will continue to inflate the contract price, refuse to complete the project and deceive us further.

I don't blame Chinese leaders for trying to scam us, I blame our leaders for not being smart enough. What do you expect when you have political hacks negotiating on behalf of Nigeria against smart professionals from China. I was thinking Nigeria political leaders will do research about Chinese lobbyists in Washington and understand the interest they are protecting before believing in Chinese version of Trojan horse.

We are the only one that can help ourselves, let's implement true federalism system and free market. Development is a culture and not a product, we can't buy it no matter how much money we have or borrow.

https://mobile.facebook.com/story.php?story_fbid=1052689368126246&substory_index=0&id=378378918890631&refid=7&_ft_=qid.6273342050025209960%3Amf_story_key.9015994599598537311&__tn__=%2As

U are on point but we have to look at the positive side also

Tell them ohhh, am very happy on this enlightenment with this I can boldly argue my points with some PMB loyalist who has been blinded by shame now but doesn't want to believe that PMB foreign trips are futile.

China

We Igbos are okay with Buhari on this positive move

We should be happy that it is only scamming... They might even colonize us! We that squandered our opportunity to be a great nation.

agreed, so what are the alternatives? We need to proffer solutions more these days than complain.

But if its all about complain, then sorry op you've got no point

Buhari and all those governors and reps that represented Nigerians including fashola and amaechi are illetrates and not smart enough to look at the future issues this loans and contracts would bring forth?

This people are old enough to be your father, inshort they can give birth to you, and u beleive they are so daft huh? You youths of nowadays that can't even be class captains in your primary or secondary school just love to beleive you are smarter than everyone else??


Keep your wailing on!! Who wail epp

1.As President Buhari and CBN Governor, Emefiele moved closer to actualizing their promise to strengthen the naira against the US dollars
2.By signing a landmark currency deal with the Industrial and Commercial Bank of China Ltd on Tuesday in Beijing, China.
3. The agreement will allow Nigerian who imports mainly from China conclude their transactions in the Chinese currency instead of the dollar
4. The new agreement would see Nigeria-China trades, which accounts for over 70 percent of imports into Nigeria, concluded in the Yuan.
5. Until now over 90% of int'l trades between Nigeria & the world is done in dollars, & in the process putting so much pressure on the naira
6. Nigeria imports almost all it needs from the West, Middle East and Asia.
7. The CBN is expected to diversify a huge chunk of Nigeria’s foreign reserve from the dollars to the Yuan to perfect the agreement.
8. “It means that the renminbi (Yuan) is free to flow among diff banks in Nigeria, & the renminbi has been included in the FXR of Nigeria,”
9. FXR means foreign exchange reserves
10. Lin Songtian, director general of the African affairs department of China’s foreign ministry, told reporters in Beijing ...
11. .. a few minutes after the agreement was signed between the Governors of the nations’ reserve banks..
12. in the presence of President Buhari & President Xi Jingping of China, who is hosting Buhari and top Nigerian officials to a state visit.
13. Lin said a framework on currency swaps has been agreed with Nigeria, making it easier to settle trade deals in Yuan.
14. China has signed currency swap deals with countries ranging from Kazakhstan to Argentina as it promotes wider use of its Yuan.
15. Nigeria would become the clearinghouse for Yuan denominated transactions for the whole of Africa following the agreement.
16. Beijing also signed agreements to develop infrastructure in Nigeria, part of a drive to deepen its ties with Africa.
17. It has offered Nigeria a loan worth $6 billion to fund infrastructure projects.
18. Also, ICBC signed a $2 billion loan deal with Dangote group, to fund two cement plants it plans to build, Lin told Reuters.
19. China’s official Xinhua news agency cited President Xi as telling Buhari that there was huge potential for economic cooperation, naming
20. Naming oil, refining and mining..
21. Nigeria is also considering issuing Panda bonds (mainly Yuan denominated) as against euro bonds because they are cheaper.

I love Nigerians so much....we always see bad thing in every good things....there's always advantage in every disadvantage


even Obama noh be saint for all Americans eye

Interesting perspective.

Na customize scam b dis. I also knw what dey are planning. Cus at first Nigerians will be rejoicing but it has an effect also. Pdp members just dey laugh on dis one.

Scam us ?
Has the west not been scamming us for decades?
How have we progressed with western partnership and loans?

China even if they scam us could be no worst than what we are already experiencing through our decades of partnership with the West.

That closing phrase though..too deep

Kylekent59:
Na customize scam b dis. I also knw what dey are planning. Cus at first Nigerians will be rejoicing but it has an effect also. Pdp members just dey laugh on dis one.

PDP members that cannot define "Foreign Exchange" do they even know what the real economic meaning of "Exchange Rate" is? or they just know what it does?

Sick Biafrans everywhere. Do you expect to borrowed from China to finance a project only to give that project to the West

Or

Do you think the Chinse are foolish to the extent of providing you with loans only for your sick leader to siphone it into the western economy ?

The easiest leaders to be scammed are those With tyrannical tendencies. Buhari is one even ordinary budgeting is a big scam let a lone a High tech scheme by the chinese.

It is unfortunate signing what they don't even understand is now heralded as achievement.

This might be too smart for the average Nigerian. Watch how it's reduced to a wailer and zombie contest. Lalasticlala, Mynd44, Seun please move this to the frontpage for those who really want to understand something about the Yuan and our deal.

ticker:
I'm not a finance expert. Just got this. How true
is it?
Some Nigerians are jubilating over $2b loan from
China and the so called Yuan trading deal. - Akani
Balogun
China wants to lend us 2 billion dollars, but they
want to give us in Yuan and not the dollar itself.
They are not handling us cash, but service
exchange; meaning if we want to buy iron rod, we
buy it from Chinese company and they pay the
company on our behalf. If we want to construct
railway, they will construct it for us and take the
money out of the loan. In the end, we are bound
to award contracts to them, cutting out
competition from others and fairplay to others(non
Chinese company can't bid or compete to reduce
the cost.) They get to value the contract and
determine the price, meaning they can sell
something worth 200 Naira for N2000 and we
don't have a choice 'cos it is on credit.
The worst of it is that China want us to pay back
in dollars, that is not all, we are moving our
foreign reserve to fake currency(Yuan) a currency
that is manipulated openly by the Chinese
government. Did anyone ask Lamido Sanusi what
happened to some of our reserve he moved to
Yuan few years ago? They sold us Yuan at 4 to a
dollar, only to devalue their currency few weeks
latter to 9 Yuan per $.
Many Nigerians don't know that even Chinese
company don't want yuan, nobody want it, Chinese
foreign reserve is in dollars, China is the largest
holder of US bond, they want dollars by all means.
Also, China have more lobbyists in Washington DC
than any other nations on earth, begging
Washington politicians to always make policy in
their favour, how can such country save us from
USD?
Has anyone asked why China hasn't built any
refinery in Nigeria?? They have the money, they
want the profit, but never did it.
If China does anything against Washington
interest in Nigeria, USA have too much political
power over China, they will just tell them not to do
it. China will continue to inflate the contract price,
refuse to complete the project and deceive us
further.
I don't blame Chinese leaders for trying to scam
us, I blame our leaders for not being smart
enough. What do you expect when you have
political hacks negotiating on behalf of Nigeria
against smart professionals from China. I was
thinking Nigeria political leaders will do research
about Chinese lobbyists in Washington and
understand the interest they are protecting before
believing in Chinese version of Trojan horse.
We are the only one that can help ourselves, let's
implement true federalism system and free
market. Development is a culture and not a
product, we can't buy it no matter how much
money we have or borrow.

Very insightful. Our problem is that our leaders politicize everything, we do not have intellectuals and strategists, all we have are evil politicians.

I ve been asking the question "what will China be getting in return?"
Zombies hv failed to give an answer to this question, China is not running a charity organization and nigeria is not a country anyone can count on to manage that loan properly and China is smart enough to know this so its obvious that they have at least a backup plan which we don't know. China is trying to cement its place as a world power and tilt the balance to their favor if buhari has sold us out well... The consequences are better left imagined hopefully by then the country would hv divided and B14FR4 go dey their own away from this nonsense make una dey shout sai buhari una go follow am go 6 ft under if una no take time

Where is the spam?

Some Nigerians are jubilating over $2b loan from China and the so called Yuan trading deal. - Akani Balogun or $6bn

Goke7:
agreed, so what are the alternatives? We need to proffer solutions more these days than complain.

But if its all about complain, then sorry op you've got no point

He also proffered a solution. He mentioned true federalism.

[b]I havent failed to criticize the buhari regime over its numerous gaffes, but Methinks just like someone argued earlier, this new found economic relationship has its pros and cons, and its not all bad as we're made to believe. Even America's most controversial politician trump has not failed to highlight china's deliberate manipulation of its economy, to leave the US at a disadvantaged end. China is the world's leader in low cost manufacturing and construction, and nigeria can seize on this opportunity to aggressively invest in long term capital projects, with serious emphasis on mining, agriculture and power, a move which will not just help to diversify the Nigerian economy, but place it as a strategic business hub in africa. I think china's partnership with nigeria should be targeted at increasing our dominace in africa in the aspects of trade and service delivery, before moving out to compete on a world stage. But with several allegations, like padded budgets, selective fight against corruption, and flagrant nepotism, that have been the hallmark of this administration's first year in office, i doubt the loan will ever be put to judicious use, and we might just end up plunging future generations into debts successive generations after them might not even be able to fully recover from[/b]

Okay

China plans to colonize Nigeria via the Yuan.....China is the new IMF

Tomorrow we'll be begging for debt relief.

Caveat Emptor















Wailers at work

Mr Followfollow

Na una sabi jere.

According to one of my colleagues words let them deliver first. Imagine how far we would have developed if the past administrations has taken advantage of this opportunity!!!

Okay