megama:
can somebody tell me if this loan can fix our local industries or cripple them futher,for me as a businessman I know that China is only an export oriented country. They must always protect their interest first. By the way why not reduce our reserve by $2 billion. Instead of borrowing with interest, NIGERIA be wise.

Barcholder:


You should be careful about insulting others and their understanding of economic matters, because, I can tell you that his post is absolutely on point. That's exactly what's happening here. This is a terrible move on the part of our Government, and I'm very happy to debate this point with anyone. This is a field of expertise for me, and I dare say that I understand far more about it than post.

There, so challenge my assertions and lets have an open debate.

DedeNkem:
That was my point earlier! China is digging Nigeria into a big hole because we've id*iots in leadership positions.

China is gradually taking over Nigeria.

Where is Nigerian Jerry Rawlings when we need him. Things are getting worse by the day!

Tesley:


Bro,Angola is doing very well... Guy google that country. They have the best oil management system and since the discovery and after their war,they have comeback strong...very strong....check. Google Angola up.

balash:
Buhari and all those governors and reps that represented Nigerians including fashola and amaechi are illetrates and not smart enough to look at the future issues this loans and contracts would bring forth?

This people are old enough to be your father, inshort they can give birth to you, and u beleive they are so daft huh? You youths of nowadays that can't even be class captains in your primary or secondary school just love to beleive you are smarter than everyone else??


Keep your wailing on!! Who wail epp

Stelvin101:


Ediot, you don't understand anything at all. How many made in US product do you see in Nigeria? And you expect the Chinese to do international trade with Nigeria with US dollars. What Chinese are simply doing is push away the US dollars and British Pound from their International Market which is a very good move because US and Europe are the problem in this world. Period!

BiafranNigerian:


1. You can not see logic, because there is no logic is applying for a loan, that you can not diversify the expense. The chinese government, will present list of chinese companies to handle the construction jobs in Nigeria and Chinese Citizens will handle the field jobs except labourers. The materials for the construction will be shipped from China, shipping paid to China and money remains in China. Lets say, Chinese company buy steel 5 Yuan and chose to capture 10 Yuan in the quotation, is there an independent auditor ? Must be chinese. So your $2b might actually mean $1b in real cost. So, China takes the away $1b in profit, plus interest, plus added employment to her citizens. What does Nigeria get ? Chinese infrastructure that is worst than Julius Berger can construct.

That is logic, I hope you see it.

2. Do I need to explain further that Chinese government consistently devalue their currency, manipulates it in such a way that it favors them, so your 30 Naira to Yuan today, might become 300 Yuan tomorrow, the sharp increase in value will attributed to high demand in Yuan even though no physical money moves in this trade deal.

I love the fact that USD to Naira rate will fall due to less demand, but then, that is a mirage if the value of Yuan will go up. Except value of Yuan stays low, then the purpose is defeated, cos importers wouldnt be needing dollars.

This is logic, see it.

3. The Chinese are at trade war with America, Yes. And we have become another pawn in the games of Chess, I hope we survive.

Mikehell:

manny4life:
The proposal does look good on paper, but my question is, if this move is to open trade doors (imports) between both countries, what plans does Nigeria have in place to secure against China's influx of cheap commodity?

1. You can not see logic, because there is no logic is applying for a loan, that you can not diversify the expense. The chinese government, will present list of chinese companies to handle the construction jobs in Nigeria and Chinese Citizens will handle the field jobs except labourers. The materials for the construction will be shipped from China, shipping paid to China and money remains in China. Lets say, Chinese company buy steel 5 Yuan and chose to capture 10 Yuan in the quotation, is there an independent auditor ? Must be chinese. So your $2b might actually mean $1b in real cost. So, China takes the away $1b in profit, plus interest, plus added employment to her citizens. What does Nigeria get ? Chinese infrastructure that is worst than Julius Berger can construct.

That is logic, I hope you see it.

2. Do I need to explain further that Chinese government consistently devalue their currency, manipulates it in such a way that it favors them, so your 30 Naira to Yuan today, might become 300 Yuan tomorrow, the sharp increase in value will attributed to high demand in Yuan even though no physical money moves in this trade deal.

I love the fact that USD to Naira rate will fall due to less demand, but then, that is a mirage if the value of Yuan will go up. Except value of Yuan stays low, then the purpose is defeated, cos importers wouldnt be needing dollars.

3. The Chinese are at trade war with America, Yes. And we have become another pawn in the games of Chess, I hope we survive.

Goke7:


Reducing our reserve for more corruption to take place, I beg o

Goke7:


The people shouting true federalism these days were the ones who destroyed it in the 1960s when it was working wonders, they never knew the value then until now, getting it back I doubt but it is a welcome idea but one issue we keep silent about is the actual function of states governors, they play a critical role in development you know

jpphilips:



First human being after 3 pages of goats, let me add to yours, if we divest Dollars to yuan, our Foreign reserve will Quadruple because of exchange rate differential, since China is Nigeria's biggest trading partner, it is a good move.

2) America is a debt laden country, it won't be long before another bubble occurs like we saw in 2008, Donald Trump has said it severally, despite the criticism he gets from the establishment who want to downplay the real state of the US economy, never mind that Ted Cruz was one of the GOP senators who held Obama by the Jugular when they nearly defaulted on their loans.
we lost a lot of foreign reserve in the process during Soludo's economic magic era not any fault of ours but the fact that the economic melt down
weakened the dollar.
Most Nigerians don't seem to realize how badly our economy bleed with those Master cards and Visa they use. We lose money while America smile to the bank, never mind that the US shale revolution put us in this mess in the first place, it is unwise to run to them for help.
Even American corporations are all manufacturing in China so getting American goods with Yuan (A currency weaker than Naira) is the best deal ever.
The Issues we need to be discussing are how Washington will take it? definitely not lying down, Gaddafi's African dinar proposal landed him in 6ft, Buhari should understand that he just dealt a severe blow to the western economy, May God protect him for us when the hammer of washington falls.

3) The Chinese Yuan is very unstable, if the Chinese economy shrinks, we will lose a substantial sum in our overall Foreign reserve, I think that is why Buhari tied the exchange of goods and services as an addendum to the deal (smart move).

Scream:
We should be happy that it is only scamming... They might even colonize us! We that squandered our opportunity to be a great nation.

TheGoodJoe:


Two billion can not even do it. That is why you guys miss it. The Railway Project runs into Billions of dollars. What about the Plants and refineries?

How much do you think it will cost to build a standard refinery?

When the Refineries are completed, it will also take a chunk from our labor market.

Is there any other way out? Remember, the America you want us to continue dealing with owes China.

The U.S. debt to China is $1.238 trillion, as of January 2016.

2sexyus:
it's a shame you are beating about the bush with all these your conjured idealism. I can't still make a head or tail from all you have written here.

billyG:

$2bn shld b enough d loan is in yuan,not d costly $.Do u know how many infrasructures,jobs Gej/Dasuki $2.1bn arm loot can provide?

Goke7:


Reducing our reserve for more corruption to take place, I beg o

omobaba101:
Chinese cannot be trusted, I have had deals with them in Nigeria and they are very dubious. Almost, all of them that I have met. Whatsoever they present to you will be totally to their advantage and they break promises very easily. They only value money and not life. They have made me lose good money (I won't like to mention the amount). The last time, I had to call my lawyer into the matter and that is when they behaved, because I started raising the point that I will make the immigration to cross check their papers. I had to restrain myself from bringing the name of the company to this forum. If it is China, Nigeria shine your eyes o!

Goke7:


Reducing our reserve for more corruption to take place, I beg o

Kylekent59:
Na customize scam b dis. I also knw what dey are planning. Cus at first Nigerians will be rejoicing but it has an effect also. Pdp members just dey laugh on dis one.

billyG:

Chinese canot b Trusted,USA cannot b trusted,is it 9jerians that are d most trusted in d world.

greenpasture:


Well said. Good points. Respect

TheGoodJoe:


I also put the American anger in context in weighing the pros and cons of this deal.

The fact of the matter is, our economy was crashing. With or without the anger of the Western World, we were doomed. What ever measures we put in place was short term.

The Telegraph article which circulated and carried by a lot of Western papers was the first strike. It was not a coincidence.

However, the speed at which the projects are completed and jobs are created will reduce the effect of whatever the Western World have in store for us.

InvertedHammer:
/


A beggar has no choice. If a creditor gives some unfavourable conditions, a prospective borrower has an option of walking away. Regrettably, Nigeria is in no such position financially.

The good news:

If we buy materials from Chinese companies, China pays for them. At least we get the materials. Compare it with giving $2b to Nigeria and the fund develops wings overnight. That is, no money no materials.
\

megama:
if it still can fly, then what's the prospect of fighting corruption, now china can manage our resources better? Then we can invite them to, recolonisze us