Obadiah Mailafia, a former deputy governor of the Central Bank of Nigeria (CBN) has warned that the country will get its ‘fingers burnt’ if it continues with borrowing from China.
The Guardian reports Mailafia as saying this while explaining the danger involved in continuous huge borrowings from a particular country.
According to him, Nigeria could suffer same travails as some African countries over their sizes of loans from China.
While warning Nigeria to be cautious over the loans it has collected so far from China, it added that the African country could end up losing critical national assets.
While noting that China may have genuine interest in Africa’s development, Mailafia said there is a reason for Nigeria to be worried about loans from the country, especially as a result of the projects they are tied to.
He also lamented that after collecting loans from China, labour is imported from there while maintenance of such projects and spare parts are also brought from the country.
He advised Nigeria to be tough negotiators which agrees to deals that are positive to the country.
“I would strongly advise that when we enter into such loan negotiations, we must ensure rigorous project preparation.
“For my part, I have always insisted that we take external loans only for projects that have a guaranteed calculated return on investments,” he said.
Legit.ng earlier reported Nigeria's resolve to secure $3 billion loan to combat the lingering electricity problems facing the country.
The loan is for the expansion of the transmission and distribution facilities of the power sector.
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