Be Careful with Chinese Deals – Akinyemi, Moghalu Warns Nigerian Govt

Nigeria and other African nations have been advised to approach Foreign Direct Investment (FDI) from China and other global players with greater strategic foresight, as the country’s administration continues its drive to enhance economic ties. This cautionary stance was emphasized by former Deputy Governor of the Central Bank of Nigeria, Kingsley Moghalu, and noted political scientist Professor Bolaji Akinyemi.

Their warnings come in the wake of the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC), which took place in Beijing from September 4 to September 6. President Bola Tinubu represented Nigeria at the summit, with the aim of deepening economic connections and securing further investments.

According to the Debt Management Office (DMO), China stands as Nigeria’s largest creditor among major global powers, including France, Japan, India, and Germany. The bulk of Nigeria’s debt to China is directed towards infrastructure projects like railways, highways, and power plants. Analysts have expressed concerns that this growing debt could become a significant burden.

Moghalu highlighted the need for strategic oversight in foreign investment, advocating for a focus on sectors that drive long-term development such as electricity, education, and agriculture. He pointed out that despite the economic opportunities presented by foreign investments, there must be a careful balance to avoid compromising national interests. He emphasized the importance of having a competent state to guide these investments effectively.

In a separate statement on Channels Television’s Sunday Politics, Professor Akinyemi cautioned the current administration against repeating past mistakes. He underscored the importance of fulfilling debt obligations to avoid negative repercussions, referencing a recent case where Nigerian sovereign goods were seized following a dispute with a Chinese company. Akinyemi stressed the need for Nigeria to manage its international agreements prudently to maintain its global standing and avoid further complications.