- Former Foreign Affairs Minister Bolaji Akinyemi advises caution on Chinese loans, emphasizing the need to honor all debt commitments to avoid defaults
- Akinyemi warns of potential asset seizures due to unpaid debts, stressing that Nigeria must manage its international obligations responsibly
Former Minister of Foreign Affairs Bolaji Akinyemi has advised President Bola Tinubu’s administration to exercise caution when dealing with Chinese loans. Speaking as a guest on Channels Television’s “Sunday Politics” program, Akinyemi stressed the importance of avoiding previous governments’ mistakes.
Akinyemi stated, “We should be careful, but we must not isolate the debt to China. Nigeria also owes the United States and several other medium-power countries. The key is to ensure that we do not default on any of our debts.”
He highlighted a recent incident, noting, “A month before the African-Chinese Summit, Nigerian sovereign goods were being seized worldwide at the request of a Chinese company. China won’t give us any special treatment; we must honour our commitments to China and to all countries we have agreements with to maintain our status and avoid having our sovereign assets seized.”
His warning comes shortly after President Tinubu met with Chinese President Xi Jinping in Beijing to discuss strengthening bilateral relations for the benefit of both nations.
Nigeria is currently indebted to five global powers: China, France, Japan, India, and Germany, with China being the largest creditor. According to the Debt Management Office (DMO), Nigeria owes China about 84% of its total $5 billion debt, amounting to over $4 billion.
Most of Nigeria’s debt to China is tied to infrastructure projects, including railways, highways, and power plants. While these projects are vital for Nigeria’s development, experts warn that the debt burden could pose significant challenges, especially given the country’s reliance on its volatile oil-dependent economy.