Nigerian government is now at risk of losing its main state assets to China over unpaid huge increasing loans from Chinese government.
But according to Nigerian government, the growing debt is sustainable, and the country is not at risk of losing state assets to China.
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“The case is one of the examples of China’s ambitious use of loans and aid to gain influence around the world and of its willingness to play hardball to collect”.
In December 2017, the Sri Lankan government handed its Hambantota port to China for a lease period of 99 years after failing to show commitment in the payment of billions of dollars in loans.
At a time in Somalia when local fishermen are struggling to compete with foreign vessels that are depleting fishing stocks, the government has granted 31 fishing licenses to China.
The report — without naming China — warned that conditions placed on major loans were a threat to Nigeria’s sovereign assets.
China is one of Nigeria’s biggest country-lenders, with billions in development projects through state-owned banks.
Also in September 2018, African Stand reported that China was taking over Zambia’s state power company and Kenneth Kaunda International Airport over unpaid debt rippled across Africa, despite government denials.
African Stand reported in December last year that Kenyan government risks losing the lucrative Mombasa port to China if the country fail to repay huge loans advanced by Chinese lenders, but both Chinese and Kenyan officials have dismissed that the port’s ownership is at risk.
This report does not necessarily reflects the opinion of SA-news.