Misinformation and politics are fueling fears of a Chinese debt trap in Nigeria
The hottest debate in Africa’s largest economy over the past week has been the over possibility of “losing” its sovereignty to China over bad debts.
It has come amid a wave of claims by federal lawmakers who are pushing for a probe into China’s lending practices to Nigeria, in the wake of a sovereign guarantee clause in loan agreements that has been erroneously interpreted. The dominant and controversial narrative is that the clause could see Nigeria sign away its sovereignty in the event of a payment default. And the outcry has proven significant enough for China’s embassy in Nigeria’s capital to deny plans to seize Nigerian assets.
Nigeria’s transport minister Rotimi Amaechi has attempted to clarify the purpose of the clause and described it as a waiver of immunity which would allow China pursue paths, including arbitration, to settle possible disputes over payments. ”They
Read the rest of this story on qz.com. Become a member to get unlimited access to Quartz’s journalism.