“We are stuck with lots of our projects because we cannot get money. The Chinese are no longer funding. So, we are now pursuing money in Europe.” Nigeria’s minister of transportation, Rotimi Amaechi, as China pauses financing projects in Nigeria.
Let me add this: those who despised China should step forward now, and fast. It is only in Nigeria that people think that capital is free. Someone is giving you money, risking assets and yet you are making it look like you are doing him a favour.
China has seen a lot, and now wants to allow those activists to provide the capital. Sure, this is not to say that I support everything China does on lending. My point remains: China deserves respect for taking risks in nations where Americans and Europeans dare not venture into.
Tekedia Mini-MBA edition 15 (Sept 9 – Dec 7, 2024) has started registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
As they pause loans across Africa, expect a monumental abandonment of projects, from railway systems to airports to presidential villas. I have called it the Great Project Abandonment and it would be massive.
Yet, the most unfortunate part: you have to keep servicing the current loans because the loans are always in phases. Not funding phase 3 does not mean that phase 2 which was funded would not be serviced. Unfortunately, without that phase 3, those shiny railway tracks may not have coaches to make use of them, as the coaches are expected to be funded in phase 3.
China wants to sleep and I hope the Western press which has waged wars on them in Africa can convince their countries to help in the continent. As the minister says, Nigeria needs money but China is not interested. The road to Europe….hope you can speak good English or French to be admitted?
China gives cash, Europe gives line of credit.
Nigeria’s railroad infrastructure projects and its push for trains as alternative means of transportation have suffered a major setback.
For months now, there has been delay in the execution of the railway construction projects as well as other infrastructural projects being financed by China.
The Minister of Transportation, Rotimi Amaechi, said the delay has been orchestrated by China’s inability to finance the projects. Amaechi said the federal government is now looking towards Europe as an alternate source of funds. He said if the loans are secured from Europe, the projects will be completed in no time.
“We are stuck with lots of our projects because we cannot get money. The Chinese are no longer funding. So, we are now pursuing money in Europe.
“And when I look at the money they are borrowing in other countries and compare it with the one we have borrowed, the kind of comments by Nigerians will put you off.”
---
Register for Tekedia Mini-MBA (Sept 9 – Dec 7, 2024), and join Prof Ndubuisi Ekekwe and our global faculty; click here.
There are many ways to look at it, Amaechi sounding as though he has some celestial wisdom in money matters and project impact is also part of the problem. There is a difference between political and economic borrowings, the latter is what will save Nigeria, but we do a lot of the former, then find ridiculous ways to justify our imprudence and lack of good judgment.
China not writing more cheques is also a good thing for the kind of political leadership we have here. We have reduced governance to how much you can borrow and squander, how do we measure competence if leaders are not forced to find creative and ingenious ways to get things done? Are we electing people and paying them huge wages just to help us rack up more loans and distribute projects as they deem fit? What exactly are their responsibilities and productive inputs in all of these?
It’s another way of eliminating funny creatures and mediocres from nearing political offices, because if there’s nowhere to borrow while lacking in capabilities and necessary intellectual capital to succeed, obviously you will keep embarrassing yourself until you get thrown out.
When you listen to these guys, you see emptiness and incapacitation, but they are supremely arrogant.