The Contestation of the Notion of Debt-Trap Diplomacy on Nigeria-China Relations: The Dilemma and Critical Issues

Abstract

The paper investigates loan agreements between Nigeria and China to unpack the myths and media frenzy surrounding the Chinese loans in Nigeria. It examines the veracity of the sovereignty clause in loan agreements. Using data generated from both primary and secondary sources and content analysis, it was realized that the hitherto poor infrastructural facilities in many African states have been given considerable facelifts due to the availability of loans from the Chinese government to fund their infrastructural developments. In the last decade, several countries across the continent including Nigeria, Zambia, and Angola have benefited from the infrastructure-related funds from the Chinese government. However, nuanced concerns have been raised by citizens across Africa following an allegation of certain clauses in the China loans that purportedly waive state’s sovereign immunity in case of default thereby granting Chinese companies or government legal rights to automatically take over the same infrastructural assets. The research findings reflect the fact that the narratives on the debt trap are just mere speculation without substantial evidence to prove the adverse effects arising therefrom to the sovereignty and economic stability of Nigerian state. The study conclude that the outright generalization on the debt trap in Nigeria-China relation cannot hold water because only time can substantiate one’s affirmative position or otherwise. The study finally recommends on the improve cooperation between the two countries on the bases of mutual and win-win cooperation on strategic areas of development that will enhance the aspirations of the two countries.