The Nigerian Debt Management Office's response to concerns about Nigeria borrowing from China is the equivalent of one saying "God forbid" to the possibility of a car crash... and then proceeding to drive without a seat-belt . Saying the possibility of a failure to default does not exist is an extremely naive statement. It's just like saying the possibility of a recession did not exist because Nigeria was the largest economy in Africa . Also the Zambia example is not yet ancient history. The question the DMO needs to answer is, what happens if there is a default? The reason concessional loans exist is because they come with certain conditions that favour the lender directly or indirectly. They either influence your policy-making or tie you into agreements that significantly hamper the potential for independent economic growth in future with severe penalties in case of a default. The question I ask is where did China, Singapore or South Korea borrow from to
My thoughts on a variety of issues, from life in the "3rd world", to love in the most unlikely places.