Nigeria has taken over $3 billion in Chinese loan
Members of the lower chamber of parliament, the House of Representatives is concerned about Nigeria’s growing indebtedness to China.
According to the lawmakers, Nigeria might be forced one day to forfeit a part of its territory if it continues on this trajectory and fails to meet up with the loan obligations at any point in time.
As of March 31, 2020, the Total Borrowing by Nigeria from China was $3.121 billion. This amount represents only 3.94 per cent of Nigeria’s Total Public Debt of $79 billion, according to the Debt Management Office.
Punch reports that the House Committee on Treaties, Protocols and Agreements, which raised the alarm over the rising Chinese loan in Abuja on Tuesday, expressed its resolve to review loan facilities already taken by the country from China and other countries.
The Minister of Transport, Rotimi Amaechi, who appeared before the committee on the $500m loan taken on the Abuja-Kaduna and other rail line projects, however, warned the lawmakers against sending a wrong signal to China.
He said this might lead to abandonment of ongoing projects if the Asian country calls off the agreement.
Chairman of the committee, Nicholas Ossai, faulted non-involvement of the National Assembly in loan negotiations by the Federal Government and its officials.
He cited the loan obtained for the Galaxy Backbone to build and operate the National Information and Communication Technology Infrastructure Backbone, a cross-country optical fibre backbone, from the China-Exim Bank in September 2018 as an example of such loans.