Chinese state firm agrees US$400 million loan for Niger junta in return for oil
- Deal described as a ‘lifeline’ for military rulers after they cut ties with France and the US while struggling to cope with the impact of sanctions
- Use of resources to repay loans is a popular model for China, but critics warn these deals are unfair and ‘mortgage the future of countries’
The deal signed on Friday by Prime Minister Ali Mahaman Lamine Zeine and China National Petroleum Corporation (CNPC) chief executive officer Zhou Zuokun will see the Chinese company advance the money to help Niger’s military rulers meet short-term obligations as the economy struggles to recover from the impact of sanctions.
According to the Nigerien Press Agency, the Chinese company will be repaid with crude oil shipments within 12 months at an interest rate of 7 per cent.
“There is no shadow over this as we have safeguarded the interests of our country,” Zeine said after signing the deal in the presence of Chinese ambassador Jiang Feng, who has been leading the negotiations with Niger.
“China is a great friend for Niger, we can never say it enough,” Zeine said. “It must be remembered since the beginning of this great oil adventure, China has always been at the side of our country and today it is proven that at such crucial moments, we could obviously manage to request an advance, these are Niger’s rights, and we will give ourselves all the means to repay them.”
“This signature demonstrates the friendship … and fruitful cooperation between the two states,” said Jiang.
