Nigeria China Loan Agreement

Interestingly, at the level of international creditors, they also had reasons to amortize certain debts and reconsider debtors for new loans. International creditors certainly know that there can always be bears. In order to make it more difficult to refuse or be unable to repay, immunity waiver clauses are usually inserted in many agreements. The waiver of immunity should not be seen as the end of the existence of a nation-State. The problem, then. is not strictly sensitive, the question of conditionality in a credit agreement in itself, which is exclusively the most important, but how conditionality is managed to the greatest benefit. Growing media and Twitter hysteria erupted in Nigeria on Wednesday over reports that a member of the House of Representatives had discovered a clause in a Chinese credit agreement that would jeopardize the country`s sovereignty in the event of default. These loans are determined by three general conditions: robust returns on infrastructure projects, cooperation with Nigeria`s International Monetary Fund (IMF) Office in debt sustainability profiling, and credit tightening, in line with the Nigerian state`s development efforts. Nevertheless, the exact framework conditions, the conditions carry a veil of concealment and there is little transparency in the way credits are managed. The strategic incentives and driving force behind China`s intrusion into the so-called Nigerian development agenda are masked by politicians and their opaque collaborators with conspiratorial rhetoric. Unfortunately, the Chinese government and its centralized credit institutions (such as EXIM banks) are essentially motivated by economic and transactional motivations. It is curious to see how the National Assembly was bypassed by the government to safeguard commercial credit agreements that were contrary to Article 21(1) of the DEBT MANAGEMENT OFFICE ACT ESTABLISHMENT (E.T.C.).

ACT 2003, which provides that this document takes into account Article 8(1) of the loan trade agreement signed between Nigeria and the Export Import Bank of China (EXIM Bank), which allegedly granted ”Nigeria`s sovereignty” as part of the $500 million loan granted to Nigeria National Information and Communication Technology (ICT) Backbone Infrastructure Phase II, signed in 2018. A critical look beyond Article 8(1) of the credit agreement determines one of two things: Is Beijing`s money a subtle predatory deal with hegemonic intentions? Or if China`s Belt and Road Initiative (BRI) is a fair credit practice aimed at strengthening the infrastructure of developing countries? Unfortunately, I did not have access to the controversial credit agreement. But in accordance with a legal maxim, according to the ”injustum est, nisi tota lege inspecta, de una aliqua ejus particula proposita judicare vel respondere”, i.e. ”it is unfair to issue a judgment or opinion on a particular clause of a law without having examined the whole law”, we will simply limit our comment to the aspect of the possible waiver of sovereign immunity, as it is mentioned in the National Assembly and quoted in the media. . . .

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