Former Minister of Education, Oby Ezekwesili has criticised President Buhari and other African leaders for taking Chinese loans without considering the long term implications.
The founder of Red Cap Movement in a series of post on her Twitter handle lamented that the Chinese authorities lure African countries into borrowing loans after tight coverage of “their exposure”.
The Chinese KNOW EXACTLY what they are doing. If you read their Loan Agreements with African countries, you will see how TIGHT they cover their exposure. Meanwhile, our own Leaders go there to naively, gleefully and with huge dose of inferiority complex, sign on to BAD DEALS.
“Our Teams put so much effort into helping countries which received significant Debt Reductions under HIPC to build up Debt Management capacities.
The idea was to help avoid a REPEAT of the DEBT ALBATROSS of the 80s, 90s and early 2000s. Alas, the REPEAT is on @ a LARGE SCALE.
“However, BORROWING WELL is at the heart of Public Debt Management. Watching the External Loan Bazaar – especially the Chinese genre – that has been happening across Africa in recent times, WE SHOULD ALL BE WORRIED.
“Countries are best advised to AVOID the RISKIEST DEBT TYPES,” she said.