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China’s loans to African nations are bad deals - Ezekwesili

China’s loans to African nations are bad deals - Ezekwesili

- Oby Ezekwesili has condemned the recent loan agreement between China and Nigeria

- Ezekwesili in reaction to the loan agreement described it as a bad deal, adding that Nigerian leaders are being naive in making deals with China

- The former minister explained that China knows exactly what they are doing going by the loan agreements with African countries

Nigerian former minister for education, Oby Ezekwesili, has criticised the decision of African countries to borrow from China, after the Asian country announced a $60 billion facility in aid and loan to Africa.

President Muhammadu Buhari on Tuesday, September 4, signed a loan agreement with China at the Forum on China-Africa (FOCAC) 2018 holding in Beijing where the Chinese government pledged to give $60 billion loan facilities to African countries, a quarter of which would be interest-free.

She then blamed African leaders, saying they lack the will to carry out bold and costly reforms that will attract private sector investment into critical sectors of the economy.

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The former vice-president of the World Bank’s Africa division condemned the recent loan agreement between China and Nigeria in a Twitter thread on Monday, September 4.

She tweeted: "The Chinese know exactly what they are doing. If you read their Loan Agreements with African countries, you will see how tight they cover their exposure. Meanwhile, our own leaders go there to naively, gleefully and with a huge dose of inferiority complex, sign on to bad deals.

“Chinese attitude to Indebtedness is the hardest in the world. I know, because one had to deal with it in the course of my work at the World Bank, helping African countries to get the HIPC Debt Cancellation."

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Legit.ng previously reported that President Muhammadu Buhari arrived Beijing Saturday, September 1, to attend the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) holding between September 3 and 4, 2018 and would secure a bank facility of $328 million for the development of ICT infrastructure.

“During the six-day official visit of the Nigerian president, he is expected to join his Chinese counterpart, Xi Jinping, to witness the signing of an agreement on the National Information and Communication Technology Infrastructure Backbone Phase 11 (NICTIB 11) between Galaxy Backbone Limited and Huawei Technologies Limited (HUAWEI) at the cost of US $328 million facility provided by the Chinese EXIM Bank,” a statement from Shehu Garba, Buhari’s spokesperson, said.

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Source: Legit.ng

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