Nigeria’s Minister of Transportation, Rotimi Amaechi, has said that no clause in the loan agreement between the country and China ceded government’s assets to the lenders in the case of repayment default.
He, however, told newsmen in Abuja that the Federal Government has so far repaid $150m of the over $3bn loans.
“When you default, they may go to court, and it depends on the outcome of the court case. But I am not aware that there is any clause signed by this government or the previous government of (Goodluck) Jonathan that mortgaged any of our national assets,” he said.
Nigeria had sought loan facilities from Chinese lenders to implement several infrastructural projects, including standard gauge rail lines.
According to the Debt Management Office, the total borrowing by Nigeria from China stands at $3.12bn as at March 31, 2020.
The minister said the Jonathan administration obtained $500m loan from China for the Abuja–Kaduna rail line, and that about $150m had been repaid, adding that the country never defaulted on repayment of loans from foreign countries and international lenders.
His words, “What I am aware of is that when you take the loan, you are expected to pay back, and as I am talking, we are paying back.
“The loan for Ibadan–Kano rail line is about $1.5bn. The remaining $500m came from our budget. I expect that whatever loan we take, we will be able to repay.”
