Nigeria will not enter ‘Chinese Debt Trap’ – Senator Arise

By Ihesiulo Grace 19 August 2020 23 No comment

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Senator Ayo Arise has said the National Assembly will ensure Nigeria gets favourable terms when negotiating for loans.

He also revealed that the lawmakers have a responsibility to make sure the country does not enter into the “Chinese debt trap.”

Arise the former Chairman, Committee on Privatization in the 6th Senate said this on Wednesday on Channels Television’s Sunrise Daily.

Daily Times Nigeria gathered that he admitted the need for funding in the country to develop its infrastructure, but also said it was pertinent for Nigeria to thoroughly look into the terms of loans from China.

He stated, “On one side, we need money to develop our infrastructure, and on the other side, the National Assembly has the responsibility to ensure that we do not enter into negotiations that will actually put this country into the so-called Chinese debt trap.

“So, it is a good thing that this is coming into the open,” he said.

Arise further revealed that the terms of the agreements on the loans may not be rewritten, but gave an assurance that the National Assembly will ensure the future of the country is not jeopardized.

“Even if nothing is directly achieved in terms of rewriting whatever agreement we had in the past.

“The National Assembly will use this opportunity to ensure that terms are defined for international loans and ensure that there is no agreement that would actually jeopardise the future of this country and our sovereignty in terms of our assets,” he said.

Again, while citing Kenya, Djibouti, Malaysia and Sri Lanka as countries still struggling with the repayment of foreign loans, Arise called on the Nigerian government to plan how to effectively repay the loans.

“There are so many examples all around the world particularly in the African continent and Asia that leaves a lot of concern to people of those countries,” Senator Arise said.

He added, “If proper planning is not put into it, 30, 20 years might seem like a long time, but it will soon be here.”