The United States accusing China of having the potential to influence the Nigerian government through Chinese loans.
This was stated in the Integrated Country Strategies document by the US Department of State.
The document was originally approved on April 6, 2022, but was reviewed and updated on June 23, 2023.
It explained that China offers sub-prime financing for a range of infrastructure projects, with the potential to add unnecessarily to Nigeria’s debt burden and increase Chinese influence over the Nigerian government.
The Corporate Finance Institute described a subprime loan as a loan offered to individuals at an interest rate above prime, who do not qualify for conventional loans.
In a document titled, ‘Status of Chinese loans as at September 30, 2021’, the DMO disclosed that 15 projects were funded with Chinese loans. Four of the 15 projects were rail-related.
The US, in its Integrated Country Strategies document, also faulted the political and economic system in the country.
The document explained that Nigeria’s fundamental problem is patronage-based political and economic decision making, with little to no coordination between relevant ministries, and a disempowered civil service that does not sufficiently advise the Federal Government or sustain policy objectives over multiple administrations.
