Has Nigeria Sold Its Soul To China?

-


 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%. 

Comments

Post a Comment

Popular posts from this blog

Why Is Truss Government Looking At Relaxing Immigration Rules?

-
Image
UK is moving towards relaxing labor shortage norms to make up for the windfall in its crucial food industry There are plans in the UK to ease off immigration rules as the country faces issues with labour shortage and need to boost economic growth. There are plans to expand the government’s shortage occupation list in order to fill in crucial vacancies. The best way that the new PM sees is by inviting overseas workers. A range of sectors are facing labor shortage and Ms Truss has been getting requests from the various to ease off immigration restrictions to ease off the labor shortage pressures. Businesses it is told have been frustrated over the visa system for skilled workers of being unresponsive to not fill the windfall. A severe shortage in farming for example needs to be addressed. Such shortages, it seems is looking like it will badly affect food and the farming sector. The first one to be helped would be the seasonal workers’ programme. Similarly, those in dire need will nee...
Read more

How University Of Glasgow Is Reviving The Art of Knitting

-
Image
There are ways and then there are more ways to keep our traditions alive. A university in the UK has found a novice way of keeping the tradition of knitting alive, by launching a book on knitting patterns based on the architecture of the university. The University of Glasgow has collated a book of such patterns that were invited from designers from all over Scotland and are based on the ‘iconic’ cloisters on the Gilmorehill campus and the ‘modernism’ of the library. The university has gone ahead and also employed knitter who resides with the university and will help in creating the patterns.  Staff and students have been alike, invited to take part in the competition to produce original knitting patterns that are inspired by the university. They have also been encouraged to use Cochno wool. University actually launched its own wool in 2018, called the Cochno that was well received by knitters around the world. The book named as the Knitting The University of Glasgow , is a jo...
Read more

North Korean Construction Workers Run For Their Lives From Russia

-
Image
While North Koreans make for a large population of migrant workers, the pressure to lose their lives working in the war-ravaged Ukraine has left them scared In a surprising revelation, North Korean construction workers are discovering that they are in fact been employed to be sent to Ukraine from Russia. Fearing for their lives, these migrant workers are now running for their lives as none would want to the ongoing war-ravaged country. The ongoing war has led to massive loss of lives and infrastructure, which Russia is on its own volition deciding to rebuild, employing migrant workers from North Korea . The same construction migrants are now running into hiding fearing for their lives. 'After getting the news that the workers would soon be moved to a new construction site in Ukraine, and needed to settle everything by the end of September, many have escaped. It's not only the construction workers, but also management officials escaping,' an unnamed source told the pub...
Read more