'These (Chinese) loans are not paid here, so you can’t even steal it. What we do is ensure that the work is done.'
Amaechi, has explained that the clause ‘waiving sovereignty’ in the loan agreement between Nigeria and China is only a contract term, a sovereign guarantee that assures payback according to the terms and conditions of any loan.
He said, “It is a commercial agreement, it’s a trade agreement between Nigeria and China. The first issue is that Ministry of Transport does not take loan. Anything about loan, talk to Ministry of Finance. What I signed is what they call commercial contract, that is contract between the federal government and“The contract between Nigeria and China is usually signed by the ministry of finance on behalf of Nigeria, but that will be escaping the issue.
In the event of a default, Amaechi stated that the lender can only go after, and take back the same assets built with the loaned funds. “And if the assets you put down become depreciated, then you negotiate which assets they can go after. The Chinese will never take over what was not constructed with the loan.”
The minister further explained that the loans are not paid to him nor the Ministry, which automatically eliminates any fear of corruption or diversion of funds. They are paid directly to the contractor in China. “The job is development related. If you don’t do it, you don’t get paid. So the contractor would want to do the job, he wants to satisfy his client, so that the client can sign to say that he has done the job.”
“So what should be primary to them is national interest, because we need to construct Lagos to Ibadan to be able to evacuate cargoes that come from Lagos to the hinterlands. So what they are doing now, may likely stop that. The same way, the government is under pressure to construct Port Harcourt to Maiduguri which passes through the south Eastern States and the North Eastern states.
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