US cautions Nigeria, others on foreign loans

The United States does not seek to stop Chinese investments in Nigeria and other African nations, but advises them to be careful in taking foreign loans.

The US Secretary of State, Rex Tillerson, clarified this at the Presidential Villa in Abuja yesterday at a joint press briefing with Nigerian Minister of Foreign Affairs, Geoffrey Onyeama, after meeting behind closeddoors with President Muhammadu Buhari.

He explained that the US did not want African countries to take loans that would make them lose control of their infrastructure and ownership of their national assets.

He said America wanted Nigeria and other nations to consider other available alternative financing mechanisms.

“What we are cautioning countries is to look carefully, that the implications of the level of debts, the terms of the debts, and whether the arrangements around the local financing are in fact creating jobs, local capacity or the projects being carried out by foreign labour being brought to your country.

“Is the structure of the financing such that you will always be in control of your infrastructure? Are there mechanisms to deal with the faults so that you do not lose ownership of your own assets? These are national assets whether there are ports, railways, or major highways.”