By uleiman Umaru
In spite of the hardship and hunger in Nigeria caused by hyper inflation, due to President Bola Ahmed Tinubu, who incidentally was a former governor of Lagos state faulty economic decisions, the Nigerian President could beat his chest that his five-day state visits to the Asian country of China will strengthen economic ties between the two countries, amidst warnings by Bolaji Akinyemi, a Professor and former minister of External Affairs, during retired Gen. Ibrahim Babangida’s Administration to be Careful of the deals that had been signed.
The Former Nigerian External Affairs minister will want Tinubu, not to rush into signing investment deals with Chinese companies believed will help to reduce the country’s debt burden to the Asian country noting that China is not the only country being owed by Nigeria.
According to him,’’ there are also debts owed the North American country of the United States, US, and some of the medium –power countries, like Brazil by Nigeria. His advice to the Nigerian Government was that ‘’it should not ‘’ default in payment of these Chinese and countries’ debt’ as agreed.
The Octogenarian who had served as a one-time, the Director General of Nigerian Institute of International Affairs NIIA, Victoria Island, Lagos, the nation’s Commercial nerve centre, had alluded to the fact that a month before Tinubu’s state visit to China and attend the African China Summit, Nigerian foreign goods were impounded all around the world at the instigation of a Chinese company.
The Chinese firm, Zhongshan Fucheng Industrial Company Limited, may have taken the bold initiative after a French court ruled in is favour, to seize Nigeria property and goods in any part of the world This may have encouraged the Chi to seize the country’s three Presidential jets being serviced in Paris, Capital of France, as security for claims in a decades -long Judicial matter between the company and the Ogun state government.
The former Nigerian External Affairs minister was said to have sounded it loud and clear that the country may be going into deals with China and other industrialized and medium-power countries that may ‘’impede the country’s status, pride and sovereign goods to be seized in any part of the world if the country is defaulting from fulfilling its debt obligations’’.
Appealing to the Nigerian Government ‘’to keep an eye on the types and contents of agreements being signed with the Chinese Companies to avoid another embarrassment. He noted that at present ‘’there is competition between the Asian country and the US’’, described as the two economic giants in the world, urging the Nigerian government to show some level of discipline in dealing with Chiina by ‘’refunding borrowed monies as and when due’’.
On the sidelines during the African –China, 2024, Summit, which was said to have coincided with the Nigerian President state visit to China last week, some bilateral agreements were said to have been sealed between the two countries. The two countries were said to have signed agreement ‘’to promote collaboration in nuclear energy’’.
Nigeria Government has long planned a domestic nuclear industry but that was how it could go. In signing the nuclear energy deal with China, the Asian county was said to have given its words ‘’to set up a training and testing center for solar and renewable energy in Nigeria. Not only that, the two countries were said to have also signed agreement ‘’to assemble electric bicycles in Nigeria’’.
More interesting was the decision by the two countries to Cooperate on flexible and diverse regional currency and fiscal initiatives , including local currency swaps , as a way to promote trade The two countries were said to have also reached a deal ‘’to share financial intelligence’’.
In the area of business, the Nigerian President state visits to China was said to have opened the door for the China Road and Bride Corporation, CRBC, to have reached agreements with Nigeria’s Brass Fwertilizer and Petrochemical Company Limited to develop the Brass Industrial Park and Methanol Complex, in Bayelsa, home state of former President Goodluck Jonathan, an initiative expected to bring close to the North American country of United States, US, $3.3 billion to the economy. Ekerikpe Ekpo, minister of state, Petroleum Resources, Gas, had said that the signing of the deal between the two energy Companies from Nigeria and China, took place during the last Forum on China –Africa Cooperation in Beining, Capital of China.
Described as a transformative project expected to significantly boost the country’s industrial output, many believe that that it will go a long way to generate vital employment opportunities for the teeming unemployed youths and the country’s sustainable development.
Another of such business deals that was said to have been signed by another Nigerian company and Chinese firm was the US, $1 bn, iron ore steel project. An insider had confirmed that there are over three million metric tonnes of iron ore deposits found in the north central states of Kogi, Niger and the south eastern state of Enugu, including Abuja, the Federal Capital Territory, FCT.
Nigeria is currently viewed as a country endowed with a variety of Natural Resources ranging from precious metals, Barites, Gypsum, Kaolin, and marble. There is no gain saying that fact most of the natural resources are yet to be exploited. Even the iron ore and other natural resources that are being including the oil and gas, in the Niger Delta region are still very low in relation ‘’to the extent of the deposits found in the country’’.
Dele Alake, minister of Solid Minerals Development, had said that the promoters of the billion dollar iron oreproject, Chart and Capstone Integrated Limited of Nigeria and Sinomach-He of China had promised ‘’to ensure the delivery of the project on schedule’’.
As a prelude to ensuring the completion of the billion dollar – iron ore project without being hindered by administrative bottlenecks, the minister had said that ‘’the Federal Government has reversed the pit- to port policy ‘’ under which mining companies exported raw materials extraction with local value addition, stressing that it was a guarantee of jobs for the teeming unemployed in the country, skills transfer and better balance of trade between Nigeria and the trading partners.
Given an insider information that the iron mining deal with China is not going to be an all-comers affair, Alake, who has the ear of the Nigerian President, had said that that ‘’to promote the local value addition, ‘’companies seeking license to mine iron ores in Nigeria must disclose plans for processing the raw materials for export as part of the conditions for approval by the government’’.
At present, the trade between Nigerian and China, according to available data from the Federal ministry of Trade, Industry and Investment is put at over US$1bn but in favour of China because the raw materials are imported from Nigeria.
He noted that once Nigeria starts to export finished or semi –finished value –added mineral products to the Asian country and other trading partners , the country’s balance of trade would be more favourable that would impact positively on the foreign exchange earnings .
The minister was said to have told those that cares to listen that ‘’with the aggressive local value addition drive’’, the foreign exchange earnings from the export of the processed iron ore, ‘’the prospects of reducing the country’s debts owed China in the nearest future are possible’’.
An elated Abel Edijala, Chief Executive Officer, CEO, Capstone Integrated Nig. Ltd, promoters of the oron ore project, who was said to have presented the Memorandum of Undertanding, MoU, singed by the Nigerian Company and the Chinese firm, to the Nigerian minister of Solid Minerals Development was said to have thanked him for putting in place an efficient license application process that works without ‘’red tape and corruption’’.
Hear Him: We applied for an exploration license for the company iron ore mining project at the Mining Cadastral Office, at the FCT and never bribed our way to see anybody before the application was approved within a reasonable period. Describing it as unbelievable , an appreciative Edijala, had said that ‘’this shows that the system that have been put in place for obtaining an iron ore prospecting license is not only fair but will work for all’’.
Hou Encai, Vice Manager, Sinomatch –He, was said to have given an inside information of the Chinese company staff of 1,250 and 2,000 Engineers on its payroll, and its readiness’’ to start the iron ore project in Nigeria’’.
Encai, had said that the company has the expertise in iron ore mining, iron making, steel rolling, steel making and the construction of infrastructures and currently handles over 80% of the steel needs of the Chinese economy. He was said to have given his words that the company will deliver on the Nigerian iron ore prospect as scheduled.
He was emphatic that the Chinese firm, which is the master contractor, also have the expertise in ‘’engineering, procurement, installation, commissioning and training the project’’. This is because it has the technology on how to excavate and evaluate the iron ore potential of any site and tell you what will be the feasibility of mineral extraction on the site.
The Sinomatch He, top Executive, could beat his chest that the company would not experience any challenge in the mining sites because it has the equipment needed for the iron ore mining , including excavators and drilling machines. He was said to have further stated that the company will not experience any setback of any kind because the trucks that will be used for the transportation of the mined iron ore from the sites to the factory are produced by them.
