Connect with us

News

“Nigeria Will Pay China Loan Back In 20 Years” – Minister Of Transportation, Rotimi Amaechi

Published

on

Minister of Transportation, Rotimi Amaechi has insisted that the Nigerian Government will pay back loans collected from China for the construction of rail projects within the stipulated period of 20 years.

"Nigeria Will Pay China Loan Back In 20 Years" – Minister Of Transportation, Rotimi Amaechi 3

Nigerians had last week expressed concern over the terms of agreement on the loans taken by the federal government from China, saying the terms of agreement suggest the country has sold its sovereignty to the China.

However, while speaking on a television programme on Sunday, Amaechi said Nigeria was not in anyway ceding its sovereignty to China.

He explained that the Sovereign Guarantee clause in the loan agreement was to assure China that it can take over the asset constructed with the loan, should Nigeria default or fail to pay back.

The minister also noted that China was the only country giving out loans with a low interest rate of 2.8 per cent, adding that no country in the world would give out a loan without a guarantee to pay back such loans.

READ:  First Thing Dasuki Did When He Returned Home After 4 Years In DSS Detention [Photos]

“The trade agreement between Nigeria and China, the ministry of transportation does not take loan, everything about loan is directed to the Ministry of Finance, so, I couldn’t have signed any loan because I don’t take loan.

“What I signed is what is called commercial contract, which is contract between the Federal Government and CCECC as a contractor, the contract between Nigeria and China is usually signed by the ministry of finance.

“Whether is the ministry of finance that signed it or the ministry of transportation, the issue is that nobody will give you loan free of charge.

“There must be an agreement and such agreement must contain some terms, that doesn’t mean that you are signing away the sovereignty of the country, no country will sign out its sovereignty.

“What clause 8 says is, 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.

READ:  Controversy Over Baby Born With Quran; You Believe?

“We are paying the loans. In the same National Assembly sitting, they were told that of the 500million dollars loan, we have paid 96 million dollars already, Nigeria is already paying.

“And the 500 million dollars was not taken by us, it was taken by President Goodluck Jonathan in his term and that clause was there.

“Nigeria has the capacity to pay back for the period of 20 years at 2.8 per cent, which country will give you that loan? Secondly, these loans are not given to us, they are paid directly to the contractors.

“Once they sign that the job has been done, they pay the contractors and that has never happened before and this project are in place. Are they trying to rubbish the fact that there is a railway from Abuja-Kaduna?

“There is no loan in Nigeria, either internal or external that is not approved by the National Assembly, none.

“Chinese government will not even give you a loan without an approval by the National Assembly because if they give you a loan without the approval from NASS that is no loan,” Amaechi explained.

READ:  PHOTOS Of Team Nigeria At the Rio Olympics Opening ceremony

The minister further said the government needed the loans to boost infrastructure in the country.

According to him, the sovereign guarantee and sovereign immunity clause raised by the NASS is a term used to ensure that loans collected are paid back.

The minister said in the case of a default, only the assets constructed with such a loan would be taken back. He said:

“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 and you come to collect the items we have agreed upon, that these are the items that am putting down as guarantee, I can waive my immunity and say no you can’t touch it am sovereign country.

READ:  ASUU Students Threatens To Disrupt The Forthcoming Election If Government Fails To Call Off strike

“So, they are saying, if you are not able to pay, don’t stop us from taking back those items that will make us recover our funds. So, is China our father that will give us money for free?

“It is a standard clause in every agreement whether is America we signed it with, whether is Britain, any country would want to know that they can recover their money.

“Anybody that is saying he doesn’t know what a sovereign guarantee or immunity is, too bad for the person, because it simply means in trade that I am not giving you this loan free of charge.

“Just like you go to the bank to collect a loan, the moment you don’t pay they go after your assets you put down, that is all about the clause, the Chinese can never come and take over Aso rock and become President or Minister.

”And if the assets you put down become depreciated then you negotiate which assets they can go after. Chinese will never take over what was not constructed with the loan.”

READ:  Court Nullifies Adeleke’s Nomination As PDP Governorship Candidate Over Certificate Forgery

Amaechi noted that it would be unconstitutional to take a loan not approved by the NASS, but for confidentiality in government he would have published the clauses generating the dusts.

The minister while asking the reason for the investigation by the NASS added that they were aware of all the loans. He said:

”The Chinese is just asking us to show them the evidence that we will pay back, which is the immunity clause. If we don’t pay, they can take back their assets.”

On the Zambia experience, where the country could not meet up with its loan agreement, the minister said that the Chinese government will never take over infrastructure that was not constructed from the money taken.

He also acknowledged that the finance ministry in a payment plan had started paying back some of the loans collected.

READ:  Ex-President, Olusegun Obasanjo Accussed Of Sacking His Worker Without Paying Their Salaries

He said the payment plan was the responsibility of the ministry of finance, and the Ministry of transportation was supposed to implement the contract.

“They are meeting the requirements, at any point in time that we need to pay, we’ll pay. 1.6 billion dollars was taken to fix Lagos to Ibadan, we are asking for 5.3 billion dollars to fix from Ibadan to Kano.

“3.2 billion dollars to fix Port Harcourt to Maiduguri, then Lagos to Calabar which is about 11.1billion dollars, if those things were done when we had money, the infrastructure will be here today? The answer is no,” Amaechi added.

The minister, however, called on the National Assembly and Nigerians to appreciate government effort in providing infrastructure in the country.

Amaechi noted that the Itakpe /Warri rail project in the South South, which was abandoned for thirty four years by successive governments was fully rehabilitated by the present administration without seeking for loan.

KanyiDaily recalls that the Debt Management Office had revealed that Nigeria’s Total Public Debt Portfolio as at June 30, 2019, stood at $83.88 billion (N25.7 trillion).

READ:  Female Banker in Lagos Takes Own Life Amid Economic Struggles

There's Nothing Selfish About Not Wanting To Get Married Or Have Children – Ibrahim Suleiman
Entertainment5 hours ago

There’s Nothing Selfish About Not Wanting To Get Married Or Have Children – Ibrahim Suleiman

Multichoice Reduces Prices For DStv, GOtv Packages After Losing Million Subscribers
News6 hours ago

Multichoice Reduces Prices For DStv, GOtv Packages After Losing Million Subscribers

"Make Peace With Your Wife, May Before It’s Too Late” – Prophet Samuel King Warns Yul Edochie
Entertainment7 hours ago

“Make Peace With Your Wife, May Before It’s Too Late” – Prophet Samuel King Warns Yul Edochie

"Instead Of My Goals To Trend, My Nyash Is Trending” – Warri Pikin Reacts To Her Football Photos
Celebrities7 hours ago

“Instead Of My Goals To Trend, My Nyash Is Trending” – Warri Pikin Reacts To Her Football Photos

Eedris Abdulkareem Drags Pastor Adeboye, President Tinubu In New Song, ‘Emi Lokan’
Entertainment9 hours ago

Eedris Abdulkareem Drags Pastor Adeboye, President Tinubu In New Song, ‘Emi Lokan’

Giving A Child Tribal Mark Without Consent Is Evil - Toke Makinwa
Celebrities13 hours ago

Giving A Child Tribal Mark Without Consent Is Evil – Toke Makinwa

“Women Are The Reason Why Some Men Aren’t Responsible Fathers” – Daddy Freeze Replies Kate Henshaw
Celebrities14 hours ago

“Women Are The Reason Why Some Men Aren’t Responsible Fathers” – Daddy Freeze Replies Kate Henshaw

Wizkid's Babymama, Jada Pollock Sparks Pregnancy Rumours With Viral Father’s Day Photo
Celebrities16 hours ago

Wizkid’s Babymama, Jada Pollock Sparks Pregnancy Rumours With Viral Father’s Day Photo

Anita Okoye Celebrates Ex-Husband Paul Okoye On Father’s Day Despite His Remarriage
Celebrities17 hours ago

Anita Okoye Celebrates Ex-Husband Paul Okoye On Father’s Day Despite His Remarriage

Actress Stella Ikwuegbu Is Dead
Entertainment17 hours ago

Actress Stella Ikwuegbu Is Dead

"I Have Lost Respect For That Man" - Victor Osimhen Lambasts Finidi George [Video]
Sports2 days ago

“I Have Lost Respect For That Man” – Victor Osimhen Lambasts Finidi George [Video]

"Money Can’t Buy True Love" - Anita Paul Shades Ivy Ifeoma's Marriage To Ex-Husband Paul
Celebrities2 days ago

“Money Can’t Buy True Love” – Anita Paul Shades Ivy Ifeoma’s Marriage To Ex-Husband Paul

Ivy Ifeoma Replies Troll Who Shamed Her For Being Paul Okoye's Second Choice [Video]
Celebrities2 days ago

Ivy Ifeoma Replies Troll Who Shamed Her For Being Paul Okoye’s Second Choice [Video]

Funke Akindele Replies Body Shamer Advising Her And Toyin Abraham To Lose Weight
Entertainment2 days ago

Funke Akindele Replies Body Shamer Advising Her And Toyin Abraham To Lose Weight

Akah Nnani Reveals Why Wedding Day Should Be For Somberness, Not Celebration
Entertainment2 days ago

Akah Nnani Reveals Why Wedding Day Should Be For Somberness, Not Celebration

"Don't Get Married If You Don’t Have Your Own Money" - BBNaija Doyin Warns Ladies
Celebrities3 days ago

“Don’t Get Married If You Don’t Have Your Own Money” – BBNaija Doyin Warns Ladies

Spotify’s refreshed ‘New Music Friday Naija’ spotlights Nigeria's rising stars 4
Business3 days ago

Spotify’s refreshed ‘New Music Friday Naija’ spotlights Nigeria’s rising stars

"Ogun Go Kill You" - Portable Slams Dammy Krane For Contacting Him Over Feud With Davido
Entertainment3 days ago

“Ogun Go Kill You” – Portable Slams Dammy Krane For Contacting Him Over Feud With Davido

2Face Is The Only Nigerian Artist I Consider A Legend - Odumodublvck [Video]
Entertainment3 days ago

2Face Idibia Is The Only Nigerian Artist I Consider A Legend – Odumodublvck [Video]

"I Love Afrobeats, Tyla And Burna Boy" - Shakira [Video]
Entertainment3 days ago

“I Love Afrobeats, Tyla And Burna Boy” – Shakira [Video]