Rotimi Amaechi says Nigeria cannot develop without loans

Rotimi Amaechi says Nigeria cannot develop without loans

- The minister of transportation, Rotimi Amaechi has said Nigeria needs loans to develop its infrastructure

- Amaechi explained that the loan contract signed with China does not cede the country’s sovereignty

- The minister stated that the clause in the contract is only a diplomatic agreement between both parties

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The minister of transportation, Rotimi Amaechi has said Nigeria needs loans to develop its infrastructure.

Amaechi made the statement on a programme on AIT when explaining that the loan contract signed with China does not cede the country’s sovereignty, The Cable reported.

Rotimi Amaechi says Nigeria cannot develop without loans

Rotimi Amaechi said Nigeria will stop developing if it does not collect loans. Photo Credit: Federal ministry of information and culture
Source: UGC

The minister faulted the claims that article 8(1) of the commercial loan agreement between Nigeria and the Export-Import Bank of China conceded Nigeria’s sovereignty to China in a loan agreement.

He said the clause is only a diplomatic agreement between both parties to ensure the payment is made accordingly.

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What clause 8 does is to say to you, I expect you to pay according to those terms we have agreed. If you don’t pay, don’t throw your immunity on me when I come to collect back the guarantee that was put forward, that is all.

What you do is, you give a sovereign guarantee and that guarantee is the immunity clause they are talking about. When we say I give you a sovereign guarantee and we get immunity clause, the immunity clause is that if tomorrow I am not able to pay you and you come to collect the items that we have agreed upon, these are items that I am putting down as guarantee. I can waive my immunity and say no you can’t touch it, I am a sovereign country,” Amaechi explained.

He said Nigeria’s development would be hampered if the country does not take loans.

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“When we stop collecting the loans, then we stop developing because there was no money when we came into government; by the time we came, the money had been blown away,” he stated.

Meanwhile, Rotimi Amaechi has raised concerns over the probe of loans taken by the federal government, noting that it could send the wrong signal to lenders.

In a report by The Guardian, Amaechi, who made the observation at an investigative hearing in Abuja organised by the House of Representatives, explained that the probe could stop the loan facility.

Speaking further at House committee's hearing, the minister said that the investigation could cause foreign partners to withdraw such loan facilities.

Amaechi, while raising concerns over the ongoing investigation with the House of Reps Speaker Femi Gbajabimila, added that withdrawal of such loans could have a negative effect on Nigeria’s infrastructural development.

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In another news, the All Progressives Congress (APC), is unhappy with former vice president Abubakar Atiku for demanding an apology from the President Muhammadu Buhari administration over loans taken.

The Nation reported that the APC reacted to Atiku's demand through its deputy spokesperson, Yekini Nabena, on Sunday, August 2.

APC said Atiku is in no position to make such a demand because his party, the Peoples Democratic Party (PDP) took similar loans when it was in power at the centre without anything concrete to show for it.

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