The United States has expressed concerns about China’s potential to exert influence over the Nigerian government through the provision of sub-prime financing for various infrastructure projects in the country, according to the Integrated Country Strategies document from the US Department of State.
The document, approved on April 6, 2022, and updated on June 23, 2023, highlights China’s sub-prime financing offers as a factor that could unnecessarily increase Nigeria’s debt burden and elevate Chinese influence over the Nigerian government.
The PUNCH’s investigation revealed that Nigeria’s debt to the Exim Bank of China stood at $4.34 billion as of March 2023, with Chinese companies such as China Civil Engineering Construction Corporation (CCECC) being actively involved in major railway projects across the country.
The report underscores China’s dominant role in Nigeria’s railway construction sector, supported by Chinese financing, while also pointing out concerns about Nigeria’s patronage-based political and economic decision-making process that can prioritize short-term personal interests over long-term stability and unity of the state.
Opinion: The US highlighting China’s influence through sub-prime financing underscores the geopolitical complexities of economic partnerships. Nigeria should carefully assess the terms of loans to ensure they contribute to sustainable development without compromising its sovereignty. Geopolitical dynamics come into play as Nigeria balances its economic partnerships and sovereignty.