Has Nigeria Sold Its Soul To China?

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 As African countries have repeatedly encountered their economic crises, they have turned to rich nations for help. The only one that has come to their rescue and then played their cards well is China.

This is also because China made it easy for the African countries. Nigeria was no exception. The need for help came from IMF and the World Bank but with a lot of conditions like Structural Adjustment Programs, spurred endless controversies and gained eternal infamy.

Nigeria also grew dependent on the Western world support as well as lending institutions like these. In 1956, when it discovered oil, its dependency on oil exports also grew. But with that came price fluctuations and then other kinds of dependencies as well.

This dangerous dependence on a single commodity for fiscal and monetary stability meant sudden or prolonged drop in oil prices automatically triggered an economic crisis in the country. This made Nigeria a regular client of the IMF and World Bank. And with the institutions’ intervention came the infamous demands for austerity measures and cuts to public spending which, unsurprisingly, were highly unpopular.

So, going into the arms of China was an obvious safe haven for Nigeria. China growth has been upwards since its economy opened up in the 1970s. At that time, Beijing needed both energy supply and export for finished goods. Nigeria had both to offer. For Nigeria, China was a God sent because it asked no questions, avoided the human rights “noise”, and offered cash with no restrictions as the Bretton Woods (IMF and World Bank) institutions did.

Since then, Nigeria has depended on China most for its infrastructure investment and more. Recently, China showed its true colors and confiscated the only International Airport of Uganda because the African country couldn’t return back its loan to Beijing.

For Nigeria, the story of slavery may become a reality, unless it already has. Currently, Nigeria’s debt profile, and the consequent interest rate payment, is set to worsen. Prior to the latest $16 billion binge, the country’s debt service to GDP ratio stood at 98%. 

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