China denies reports of possible takeover of Nigeria’s sovereignty in case of default in $500m loan

By Admin

The Chinese Government, on Tuesday, 4 August, 2020 issued a rebuttal to widespread reports that it may take over Nigeria’s sovereign right on the assets financed by the loans to China if there was payment default.

It explained that there is no clause regarding any possible takeover of the country’s sovereign right, in the $500 million loan it gave to Nigeria.

This comes in the aftermath of the probe of Chinese loans to Nigeria by the House of Representative which alleged that the agreements ceded Nigeria’s sovereign right on the assets financed by the loans; in the eventuality of any default in repayments.

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However, the Chinese foreign ministry in a statement debunked the claim saying the country has no such plan.

The statement reads in parts “We follow a “five-no” approach in our relations with Africa: no interference in African countries’ pursuit of development paths that fit their national conditions; no interference in African countries’ internal affairs; or imposition of our will on African countries; no attachment of political strings to assistance to Africa; and no seeking of selfish political gains in investment and financing cooperation with Africa,” the Chinese Government quoted President Xi Jinping.

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The ministry added that “China is committed to enhancing investment and financial cooperation with African countries; based on their needs to help them improve infrastructure and extradite socioeconomic development.

“By funding infrastructure and other areas that lag behind for short of money; we have helped the relevant countries break bottlenecks, enhance their capacity for independent development, realize social and economic sustainable development, and improve people’s livelihood”

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“Such cooperation has delivered tangible benefits to African countries and peoples.

In the process, China always gives full consideration to debt sustainability and seeks mutually-acceptable proposals through equal and friendly consultations. That is the fundamental reason behind the enormous popularity of China-Africa cooperation in Africa.”