First, there should be no basis for a default if there is no fraudulent intent to default. There is a difference between immunity from assets and sovereign immunity. The Sino-Nigerian loan agreement is commercial in nature and only applies to assets for which the loan is contracted. In the event of non-repayment, it is the control of the assets that effectively serve as collateral for the loan concerned. The existential relationship between Nigeria and China has been mainly fuelled by an investment strategy based on the classic Keynesian theory of economic growth, firmly rooted in Nigeria`s development agenda. This incongruous relationship marked the beginning of an era of close diplomatic relations, particularly in the context of a unique desire by President Mohammadu Buhari`s government to obtain funds ready for the road and rail infrastructure deficit. The key to this position is openness to treaties signed on behalf of the country and the possibility for public debate to defend the best position. NGOs and the press should be prepared to demand not only copies of the agreements with China, but also all agreements signed by the country for a complete review. The effects of these loans are not only obvious, but also visible.
For example, the Idu – Kaduna Rail Line has become an important source of transport between Abuja and Kaduna. The new Abuja International Airport has also improved air traffic for the population, while the Lagos-Ibadan rail line, once completed, will facilitate traffic on the busy Lagos-Ibadan Expressway. Waivers such as this are limited to the legal instrument under which they are granted. As a result, the sovereign immunity privilege was removed here only for the implementation of the loan agreement with exim Bank of China in 2018. The State of Nigeria retains its privilege for all other circumstances; Even under the agreement, only the exim Bank contractual equivalent (excluding another third party) can benefit from the waiver. This is why Nigeria`s inherent sovereignty is not affected by the signing of such a clause. The Debt Management Office (DMO) must be interviewed to reveal the weak institutional frameworks and agreements imposed on us by Exim banks and their archangels at the Chinese Ministry of Foreign Affairs. The process of packing and operating credits is inherently corrupt and leads to inefficiencies that have led to capital theft and work stoppages from Nigeria.
The cost-benefit framework is not public for proper evaluation. First, there is the Debt Management Office Act 2003, which provides in section 21, paragraph 1, that no external loan can be approved unless its terms are first submitted to the National Assembly and approved by the National Assembly by decision. Why were lawmakers earlier? Why has the loan agreement not yet been tabled in the National Assembly? Unfortunately, I did not have access to the controversial loan agreement. But in accordance with a legal maxim that “injustum is, nisi tota lege inspecta, de una aliqua ejus particula proposita judicare vel responderee”, i.e. “it is unfair to give a judgment or opinion on a particular clause of a law without considering the whole law”, we will limit our comment to the aspect of a possible lifting of sovereign immunity. , as quoted in the National Assembly. Nigeria can only lose its sovereignty as a nation-state if Nigeria no longer exists as a state defined by territory, government and people.