Chinese Loans to Nigeria: Need to ascertain the validity of loans supposedly advanced to the Federal Republic of Nigeria by the Peoples Republic of China.

by Eze Eluchie,

Your Excellency, President Xi Jinping,

The General Secretary of the Communist Party of China

c/o Embassy of China to Nigeria

Abuja.

Dear Sir,

CHINESE LOANS TO NIGERIA: NEED TO ASCERTAIN THE VALIDITY OF LOANS SUPPOSEDLY ADVANCED TO THE FEDERAL REPUBLIC OF NIGERIA BY THE PEOPLE'S REPUBLIC OF CHINA.

Firstly, kindly accept our heartfelt congratulations on the firm and masterly manner you have steered the affairs of your country, leading her to enviable heights amongst nations. Your unique achievements which have now served to position The People’s Republic as a global leader and lead advocate for Free Trade, International Commerce, shared prosperity and multilateralism, particularly in the face of increasing introspective stance of the United States, is most commendable.

Likewise, your leadership role in striving to create alternate structures for global commerce and international engagement, and increasing financial, military and technical resources available to diverse entities and countries across the world, increasingly solidifies China’s position as a rising constant in global affairs.

It is with regards to the item mentioned in the preceding paragraph, “making financial.....resources available to diverse entities and countries”, with particular reference to financial assistance and loans purportedly accorded the Federal Republic of Nigeria, that we now have cause to engage in this correspondence with your Office.  

There has been a noticeable spike in the reports and numbers of Loans and financial facilities advanced from your Government and Chinese financial institutions, ostensibly to the Government of the Federal Republic of Nigeria. The loans and Financial facilities announced to have been accorded the current Muhammadu Buhari-led government in the course of the past three years has been unprecedented in the annals of Nigeria’s history and probably attaining unmanageable proportions, leading to serious concerns being raised in informed circles in Nigeria regarding the utility, authenticity and legal status of such loans and facilities.

As Your Excellency may well be aware, or have been informed by the Embassy of China in Nigeria, there are peculiar Constitutional and administrative prerequisites which serve to accord validity and legality to and authenticate any agreements (inclusive of agreements according Nigeria international loans and financial facilities) entered into (or purported to have been entered into) on behalf of the Federal Republic of Nigeria. When such prerequisites are absent, agreements purported to have been entered into with the Federal Republic of Nigeria are non-committal and not worth the paper they are written on.

I will like to bring to your notice the fact that Section 12 of the Constitution of the Federal Republic of Nigeria 1999 (as amended), clearly stipulates that for any treaty entered into by officials of the Nigerian State to be valid and obligate the Nigerian state, such treaty must be ratified and domesticated by Nigeria’s National Assembly. Sections 80 – 83 of the same Constitution also outlaws any withdrawal of funds from Nigeria’s national treasury without prior authorization from the national Assembly – inclusive of repayments for and servicing of financial facilities earlier advanced..

A combination of the twin provisions of the Nigerian Constitution highlighted above absolves the Government and peoples of the Federal Republic of Nigeria from obligations and liabilities of whatsoever treaties entered into by any individual or entities whatsoever (inclusive of any present occupant of the Office of President of the Federal Republic), purporting to act for the Nigerian State. The Federal Republic of Nigeria cannot be held liable or obligated for Loans and or financial facilities and any other commitments or covenants purportedly entered into on Nigeria’s behalf which said agreements/treaties were not ratified and domesticated by the Nigerian National Assembly.

The caveats being raised here are particularly germane when the increasing agitation for holistic restructuring and renegotiation of Nigeria and the skewed and opaque manner with which the loans and financial facilities sourced from The Peoples Republic are deployed, are factored in. 

Let it be clearly pointed out at this juncture that this is not a call to cease all bilateral relationships and developmental collaborations and exchanges with the Federal Republic of Nigeria, rather it is a call for increased diligence and adherence to due processes towards ensuring that in reality when agreements are intended to be entered into with the Federal Republic, it is indeed the Federal Republic that is a party in such agreement and not merely some smart alecs (in both China and Nigeria) who are lining their pockets whilst purporting to enter into non-existent, non-binding bogus loan agreements and financial dealings. With knowledge of your governments swift and resolute stance against corruption by officials, we have no doubt that issues raised here will be accorded the urgent attention they deserve.

Let it also not be mistaken that this correspondence, in any way, serves to encourage disinterest in or does not welcome Chinese investments in Nigeria and across Africa in line with the noise orchestrated by some reactionary forces who have themselves bled Nigeria and the African continent dry for quite awhile – all investment which profit the domestic population are welcome.

Remain assured of our high regards.

For: Alert Citizenry.

Eze Eluchie, Esq.

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Picture: The Nigerian and Chinese Presidents, Muhammadu Buhari and President Xi Jinping.