China speaks on taking over Nigeria’s sovereignty over unpaid loan

China has reacted to the talk of taking over Nigeria’s sovereignty over an unpaid loan. 

OnyxNews Nigeria reports that the Government of China has denied any plan to take over Nigeria as part of the loan agreement signed between the two countries.

The Asian country also reportedly denied that there was any clause in the loan agreement terms between the two countries which allow it to take over Nigeria’s sovereignty in the case of any default in the payment of the loan.

It will be recalled that the House of Representatives had raised an alarm over what it claimed is a discovery of a clause in the loan agreement deal between Nigeria and China which ceded Nigeria’s sovereign right on the assets financed by the loans to China if there was payment default. The claim has generated various forms of reactions from Nigerians across different quarters.

However, the Chinese authority has denied any such clause exists in the loan contract.

Reacting to the claims by the lawmakers, the Chinese government, in a statement by its foreign affairs ministry stated that there was no such plan made by the country.

It added that China follows a “five-no” approach in its dealings and relations with African countries which put into consideration the debt sustainability of such loans.

The statement added that China loans are becoming popular in Africa due to the friendly consultations employed in making funds available for the growth of countries in the continent.

“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; no 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 ministry quoted President Xi Jinping, as saying at the FOCAC Beijing Summit in 2018.

“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. 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.”