SWITZERLAND, AUGUST 17 – Nigeria’s monthly debt service on Chinese loans is set to reach a record $86.948 million by September 2020 from $66.658 per month in March 2020.
This is according to data available on the World Bank’s website concerning Nigeria’s debt servicing to its creditors.
China is currently Nigeria’s biggest creditor. Chinese credit accounts for 80 percent of all bilateral lending to Nigeria, data from the Debt Management Office (DMO) show. China provides loans to build railways, power plants and airports, helping to bridge a huge infrastructure gap in Africa’s largest oil producer.
As concerns over growing Chinese loans increase in Nigeria, the Chinese government has assured that it does not have any clause in its loan contracts ceding Nigeria’s sovereignty to China.
This follows claims by members of the House of Representatives that they had uncovered clauses in a loan obtained by Nigeria from China that conceded Nigeria’s sovereignty to China.
The House of Representatives had raised an alarm over alleged clauses in Article 8 (1) of the Commercial Loan Agreement signed between Nigeria and the Export-Import Bank of China.
In the said agreement, Nigeria stands to concede her sovereignty to China should there be a default in the repayment of the $400million for the Nigerian National Information and Communication Technology Infrastructure Backbone phase 2 project signed in 2018.
Part of the agreement said that: “The borrower hereby irrevocably provides waives on any immunity on the grounds of sovereign or otherwise for itself or its property in connection with any arbitration pursuit to Article 85 thereof with the enforcement of any arbitral award pursuit thereto except for the military asset and diplomatic asset.”