Speaking on the controversy around loans from China, the minister said the Buhari administration had to rely on loans when it took off in 2015 because there was no money on ground.
A house of representatives panel had raised the alarm over clauses conceding Nigeria’s sovereignty to China in a loan agreement.
The clause, described as “lethal” by the panel, is in article 8(1) of the commercial loan agreement between Nigeria and Export-Import Bank of China.
Speaking in a parley with journalists , the minister said contracts signed with China do not cede the country’s sovereignty.
He said the clause is only a diplomatic agreement between both parties to ensure payment is made accordingly.
He maintained that Whether it is the ministry of finance that signs or the ministry of transportation, the issue is that nobody will give anyone loan free of charge. There must be an agreement and such agreement must contain some terms.
He also clarified that doesn’t mean that you are signing away the sovereignty of the country as no country will sign out its sovereignty,
He went further to explain that what clause 8 does is to say to you, I expect you to pay according to those terms we have agreed. If you don’t pay, don’t throw your immunity on me when I come to collect back the guarantee that was put forward.
The minister said the clause is a standard feature in every agreement to ensure the lending country receives its money.
The Minister further said that when the country stops collecting the loans, then it will stop developing because there was no money when they came into government.
He said that by the time they came, the money had been blown away.
The minister had earlier said China will not approve Nigeria’s request for loans if the national assembly continues to probe the loan agreements the country has with lenders.
