No clause in loan contracts ceding Nigeria’s sovereignty to China ‘ Chinese Foreign ministry

The Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami SAN, has allayed fears over the signing of loan agreements with a clause that waives Nigeria’s sovereign immunity to China should she default in its repayment plan, assuring that President Muhammadu Buhari will at all times act in national interest.

This is even as the Chinese Foreign Ministry, on Monday, denied that China had any clause in its loan contracts ceding Nigeria’s sovereignty to China.

It could be recalled that the House of Representatives last week summoned the Minister of Transportation, Rotimi Amaechi; Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed and Minister of Communications and Digital Economy, Alhaji Isa Pantami, over a loan agreement with China, which contained the waiver clause.

Article 8(1) of the commercial loan agreement signed between Nigeria and Export-Import Bank of China, according to the House of Representatives, concedes Nigeria’s sovereignty to China.

The lawmakers had picked holes in the $400 million loan agreement for Nigeria National Information and Communication Technology (ICT) Infrastructure Backbone Phase II Project, signed in 2018.

The provocative clause in the agreement, reportedly signed by Federal Ministry of Finance (borrower) on behalf of Nigeria and the Export-Import Bank of China (lender) on September 5, 2018, provides that “the borrower hereby irrevocably waives any immunity on the grounds of a sovereign or otherwise for itself or its property in connection with any arbitration proceeding pursuant to Article 8(5), thereof with the enforcement of any arbitral award pursuant thereto, except for the military assets and diplomatic assets.”

But the Minister of Transportation, Rotimi Amaechi, had said he was ashamed that people can’t understand that the clause ‘waiving sovereignty’ in China’s loan agreement with Nigeria is only a contract term, a sovereign guarantee that assures payback according to the terms and conditions of any loan.

Amaechi made the clarification while answering questions about the loan controversy on a TV programme. He had also explained that the Nigerian government has the capability to pay back loans collected for the construction of rail projects within the stipulated period of 20 years.

However, explaining the Chinese loan on Monday, its Foreign Ministry, in a statement, said the world’s second-largest economy follows a ‘five-no’ approach in its relations with Africa viz:

“No interference in African countries’ pursuit of development paths that fit their national conditions; no interference in African countries’ internal affairs; no imposition of our will on African countries; No attachment of political strings to assistance to Africa; and no seeking of selfish political gains in investment and financing cooperation with Africa”.

The Ministry quoted President Xi Jinping as saying this at the FOCAC Beijing Summit in 2018.

The Foreign Ministry continued: “China is committed to enhancing investment and financial cooperation with African countries based on their needs to help them improve infrastructure and extradite socio-economic development.

“By funding infrastructure and other areas that lag behind for short of money, we have helped the relevant countries break bottlenecks, enhance their capacity for independent development, realise social and economic sustainable development, and improve people’s livelihood.

“Such cooperation has delivered tangible benefits to African countries and peoples.

“In the process, China always gives full consideration to debt sustainability and seeks mutually-acceptable proposals through equal and friendly consultations.

“That is the fundamental reason behind the enormous popularity of China-Africa cooperation in Africa.”

Meanwhile, Malami, in response to ThisDay inquiry, said there was nothing to worry about over the loan agreement, saying the federal government will always act in the best interest of the country.

“The point of note, as per waiver of immunity is concerned, is the fact that it could either be an immunity of sovereignty of a nation or in the alternative waiver of sovereignty as it relates to a contractual obligation, which in effect entitled a party to the contract to have their contractual right enforced on the assets of a sovereign state simpliciter, without affecting the sovereignty of a nation in its own right,’’ he said.

The AGF said in addition to ‘’being people-oriented administration,” the Buhari government is committed to the rule of law, including respect to the international conventions and extant laws in its dogged determination to guard Nigeria’s sovereignty and its territorial independence and integrity in improving the welfare of Nigerians.

“As you might be aware, relevant ministries and agencies will make presentations and receive inputs at National Assembly sessions in order to deliberate on the matter.

“Contentious issues will not only be addressed, but other implications will be analysed with a view to making informed decisions in the best interest of the country and for the betterment of Nigerians,’’ Malami stated.