China to lend Nigeria $2.5 bln for infrastructure

[Richard Akindele]

ABUJA (Reuters) - Nigerian President Olusegun Obasanjo is seeking permission from the Senate to accept a $2.5 billion soft loan from China that would be used to invest in railways, a power plant, and the rural telephone network.

China has been cultivating its bilateral relations with Nigeria, Africa's top oil producer, as it seeks to secure access to crude oil supplies to power its fast-growing economy. In separate deals, Chinese companies have pledged investment in Nigerian infrastructure in return for oil drilling rights.

A letter obtained on Tuesday that Obasanjo wrote to the Senate says $1 billion of the facility would go towards building the first phase of a 2,600 MegaWatt hydro-electric power plant. Nigeria is trying to address its chronic power shortages.

A further $1 billion would go towards the first phase of a new standard gauge railway, linking Lagos area ports to the southwestern city of Ibadan, while 500 million would be used to improve the rural telephone network in many areas.

"(Funding the projects) with such a cheap facility would obviate the need to draw down on our external reserve, thereby enhancing the exchange rate of the naira," Obasanjo wrote.

[Richard Akindele]

Nigeria earns about $2.6 bln from oil sales every two weeks. Why don't we use such earnings to develop the proposed electricity/railway projects, rather than go seeking loans from China? Past history has taught us that loans are not good for Nigeria. We had to move heaven and earth to get the Paris club loan written off. Now we're going after more loans?

I'm against Nigeria developing relations with China, for the fact that China can't be trusted.

China has a very horrible human rights record. They kill their prisoners for the purpose of harvesting their kidneys for sale to rich people who need them. How about the fact that they beat dogs to death with sticks to provide meat.

China has been caught selling deadly weapons to Iran. This came to light in the recent Israeli-Hezbollah confilict. The questions is, why would China be supporting terrorists nations?

How about the fact that China does not like black people? Chinese people are extremely racist against non-whites. They treat black people like animals over there.

With all of these facts, why would Nigeria want to ally itself with China? Oil is available for sale on the open market via OPEC. If China wants oil, let them buy it that way.