The Minister of Transportation, Rotimi Amaechi, on Saturday said the government has the capability to pay back the Chinese loans collected for the construction of rail projects within the stipulated period of 20 years.
In a statement, Amaechi said that China was the only country giving out loans with a low-interest rate of 2.8 per cent.
He stated that no country in the world would give out a loan without a guarantee to pay back such loans.
“The trade agreement between Nigeria and China, the ministry of transportation does not take loan, everything about loan is directed to the Ministry of Finance, so, I couldn’t have signed any loan because I don’t take loan.
“What I signed is what is called commercial contract, which is contract between the Federal Government and CCECC as a contractor, the contract between Nigeria and China is usually signed by the ministry of finance.
“Whether is the ministry of finance that signed it or the ministry of transportation, the issue is that nobody will give you loan free of charge,” Amaechi said.
In 2017, the Nigerian government secured a $7.5 billion loan from the Chinese for the Lagos-Kano rail project. Another $1.5 billion loan was received from China for the Lagos-Ibadan rail construction. Earlier this year, the Senate approved a $22.7 billion loan request by President Muhammadu Buhari: 70 per cent of the loan (about $17 billion) will be sourced from China’s EXIM Bank.
“There must be an agreement and such agreement must contain some terms, that doesn’t mean that you are signing away the sovereignty of the country, no country will sign out its sovereignty.
“What clause 8 says is, I expect you to pay according to those terms we have agreed, if you don’t pay, don’t throw your immunity on me when I come to collect back the guarantee that was put forward, that is all.”
He also said Nigeria is already re-paying some of the loans it had taken, noting that out of a $500 million loan taken by the previous administration, the country had paid back $96 million.
“And the $500 million was not taken by us, it was taken by President Goodluck Jonathan in his term and that clause was there.
“What you do is you give a sovereign guarantee and that guarantee is the immunity clause they are talking about.
“When we say, I give you a sovereign guarantee and we get immunity clause, the immunity clause is that, if tomorrow I am not able to pay and you come to collect the items we have agreed upon, that these are the items that am putting down as guarantee, I can waive my immunity and say no you can’t touch it am sovereign country.
“So, they are saying, if you are not able to pay, don’t stop us from taking back those items that will make us recover our funds. So, is China our father that will give us money for free?
“It is a standard clause in every agreement whether is America we signed it with, whether is Britain, any country would want to know that they can recover their money.
“Anybody that is saying he doesn’t know what a sovereign guarantee or immunity is, too bad for the person, because it simply means in trade that I am not giving you this loan free of charge.
“Just like you go to the bank to collect a loan, the moment you don’t pay they go after your assets you put down, that is all about the clause, the Chinese can never come and take over Aso rock and become President or Minister.
“And if the assets you put down become depreciated then you negotiate which assets they can go after. Chinese will never take over what was not constructed with the loan.”
- Breaking: Ohanaeze President General, George Obiozor, confirmed dead - December 28, 2022
- US to support NDLEA on improved intelligence gathering capacity - December 27, 2022
- Why diversified HIV/AIDS prevention tools matter for women - December 26, 2022