Bolaji Akinyemi, a former Minister of Foreign Affairs, has urged President Bola Tinubu’s administration to exercise caution with Chinese loans.
During a recent appearance on Channels Television’s Sunday Politics programme, Akinyemi emphasized that Tinubu must avoid repeating the mistakes of previous administrations.
The octogenarian remarked, “We must approach this issue carefully, but we shouldn’t isolate our debt to China. We also owe significant amounts to the United States and several other medium-power countries.
“What we need to prioritize is twofold: first, we must not default on these debts. Just a month before the African-Chinese Summit, Nigerian assets were being seized worldwide at the behest of a Chinese company.
“Therefore, China will not offer us any leniency; we need to ensure we meet our obligations, not just to China but to all countries with which we engage. Defaulting on our agreements could seriously impact our standing, our pride, and lead to our assets being seized.”
This warning comes just days after President Tinubu and Chinese President Xi Jinping met in Beijing to discuss strengthening bilateral ties for the benefit of their citizens.
Nigeria owes debt to five major global powers: China, France, Japan, India, and Germany. According to the Debt Management Office (DMO), China is Nigeria’s largest creditor. The country owes China approximately 84 percent of its total $5 billion debt, amounting to over $4 billion.
This debt primarily finances crucial infrastructure projects such as railways, highways, and power plants. While these developments are vital for Nigeria’s progress, analysts warn that the debt burden presents significant challenges, particularly in the country’s volatile, oil-dependent economy.
