THE United States has said China has the potential to influence the Nigerian government through Chinese loans.
This was stated in the Integrated Country Strategies document by the US Department of State.
The document was originally approved on April 6, 2022, but was reviewed and updated on June 23, 2023.
According to the document, China offered sub-prime financing for various infrastructure projects in the country.
The Corporate Finance Institute described a subprime loan as a loan offered to individuals at an interest rate above prime, who do not qualify for conventional loans.
The document read in part, “Meanwhile, China offers sub-prime financing for a range of infrastructure projects, with the potential to add unnecessarily to Nigeria’s debt burden and increase Chinese influence over the Nigerian government.”