SERC Raises Concerns Over Chinese Investment In Nigerian Ports

SERC Raises Concerns Over Chinese Investment In Nigerian Ports
….calls for caution,says Nigeria should be aware of “Greek gifts”

Chinese Port Expansion In Africa

By Frank Odinukaeze

The Sea Empowerment and Research Center (SERC), in a recent statement, has issued a strong advisory to the Nigerian government regarding the potential risks associated with Chinese investment in Nigerian ports. The advisory was based on an in-depth study of China’s expanding economic and military influence in Africa, particularly through port development projects.

Dr Eugene Nweke, Head, Research,SEREC, in a Monthly bulletin of the research organisation,noted that a recently circulated map showcasing Chinese port expansion across Africa has highlighted some Nigerian ports as viable dual-use facilities—capable of accommodating both commercial and military operations. This revelation has sparked conversations about the long-term implications for Nigeria and other host countries.
SERC has pointed out that while Chinese investments may offer immediate solutions for infrastructure financing, they often come with significant risks. The organization referenced several cases across Africa and beyond where nations faced dire consequences due to an over-reliance on Chinese loans. Examples include:
– Djibouti, grappling with loan repayment challenges that could lead to ceding control of its strategic port.
– Sri Lanka, which lost control of its Hambantota port after defaulting on loans.
– Kenya, dealing with repayment difficulties tied to its Standard Gauge Railway project.
-Zambia, where rumors swirl about potential Chinese takeovers of state-owned assets.
The think tank warns that Nigeria could face similar challenges if Chinese financing for port development is not managed carefully. Risks include:

– Debt sustainability issues**, potentially compromising national sovereignty.
– Loss of strategic assets**, with Chinese firms possibly taking control if loans are not repaid.
– Military concerns**, as China’s naval presence expands in Africa, raising fears about the dual-use nature of ports.
To mitigate these risks, SERC has urged the Nigerian government to adopt a cautious and strategic approach by:
1. Conducting comprehensive risk assessments of Chinese investments.
2. Pursuing diversified partnerships to reduce reliance on a single financier.
3. Promoting transparency and accountability in loan agreements.
4. Investing in local capacity building to lessen dependence on foreign expertise.
SERC emphasized that the Nigerian government must exhibit strong nationhood, political will, and patriotism to ensure port infrastructure development aligns with the country’s long-term economic and strategic interests. The organization believes that with careful planning and execution, Nigeria can harness the benefits of foreign investment while safeguarding its sovereignty and future prosperity.
This advisory from SERC serves as a timely reminder for Nigerian policymakers to tread carefully in navigating foreign investments that carry both opportunities and challenges.