TWO senior lawyers have expressed divergent views on the ‘sovereignty clause’ in the $400m commercial loan agreement between Nigeria and China
The opponents argue that the clause ousted the nation’s sovereignty, should Nigeria fail to repay the loan.But, a former President of the Nigerian Bar Association , Dr. Olisa Agbakoba , said there is nothing to worry about.Another lawyer Mr. Norrison Quakers disagreed with Agbakoba.The loan pact was signed by the Federal Ministry of Finance on behalf of Nigeria and the Export-Import Bank of China on September 5, 2018.
The ministers clarified that the lawmakers must have misconstrued the concepts of international diplomatic immunity and commercial immunity. “The standard clause that is introduced when two sovereigns are doing business – like China and Nigeria – or a non-sovereign and a sovereign are doing business is for the sovereign debtor, such as Nigeria, to have her credit assessed.
The senior advocate observed that the waiver of immunity clause was at work recently when Zambia lost assets to China after it defaulted on repaying a loan.“If you have good standing internationally, for instance, America will not waive its sovereign immunity because America is good for credit. Unfortunately, few African countries are not good for credit. So, it is the credit worthiness issue that is the problem.
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