…Say many African nations already affected
By Steve Agbota
Stakeholders in the nation’s maritime sector are unanimously cautioning the federal government to be tactical in absorbing Chinese investments at the ports as they have far-reaching implications on sovereignty and security.
According to them, Chinese loans channeled into the ports must not morph into loan traps as witnessed in many African nations who are currently struggling to wriggle out complex debt webs and regain full control of their maritime domains from the Chinese.
They revealed that Chinese firms are not only securing major investments in port infrastructure but are also dominating freight forwarding operations; roles traditionally handled by indigenous firms. They allege that Chinese companies are clearing their equipment independently and handling project cargoes that rightfully belong to local freight forwarders. If this trend continues unchecked, they warn, Nigeria risks losing control over its ports to foreign entities.
Reports indicate that Chinese firms already hold significant stakes in key West African ports, including a 50% share in Nigeria’s Lekki seaport, 66% in Kribi, Cameroon as well as Lomé, Togo.
Analysts further highlight that several strategically located ports, such as Lekki (Nigeria), Luanda (Angola), Mombasa (Kenya), and Dar es Salaam (Tanzania), could be positioned for future Chinese military use, given their design and operational control.
Despite China’s concentrated port investments in West Africa, its influence is spreading across the Atlantic and Indian Ocean regions, raising critical questions about the long-term implications for national sovereignty and economic independence of African nations.
The Sea Empowerment and Research Center (SEREC) said it conducted an in-depth analysis of a recently circulated map detailing China’s expanding port investments across Africa.
The findings, SEREC said, indicate that certain Nigerian ports have been classified as key dual-use facilities, having previously hosted PLA Navy port calls and naval exercises.
This, SEREC warns, aligns with China’s broader strategy to cement both its economic and military presence on the continent.
According to Eugene Nweke, Head of Research at SEREC, the increasing Chinese footprint in African ports raises serious concerns about the long-term sovereignty of host nations.
As Nigeria accelerates its port infrastructure development with Chinese financing, he stresses the need for a critical assessment of the risks and rewards such agreements entail.
Describing China’s financial engagements as a “loan trap,” Nweke cautioned that Nigeria must learn from the experiences of other African nations that have struggled under similar arrangements. He cited Djibouti, which is at risk of losing control over its strategic port due to mounting Chinese debt, and Sri Lanka, which ceded ownership of the Hambantota Port after failing to meet its loan obligations. Similarly, Kenya faces debt repayment challenges on its Standard Gauge Railway project, while reports suggest that Zambia’s state-owned power company may soon fall under Chinese control due to unpaid loans.
With China’s influence expanding beyond just West Africa into both Atlantic and Indian Ocean territories, SEREC urged the federal government to exercise caution and prioritize national interests when engaging in foreign-funded port development projects.
“Nigeria’s reliance on Chinese loans to finance its port infrastructure development raises concerns about: debt sustainability risks, loss of control and Military implications, Military implications.
“Nigeria’s growing debt to China may compromise its sovereignty. Chinese firms may take control of strategic assets in Nigeria if loans are not repaid and China’s investment in Nigerian ports may have military implications, given its growing naval presence in Africa and the potential for dual-use ports. These are implications for Nigeria,” he said.
He recommended that to navigate the risks associated with Chinese investment in Nigerian ports, the government should conduct thorough risk assessments, develop strategic partnerships, promote transparency and accountability and support local capacity-building
However, the SERC advises that the government must demonstrate strong nationhood, political will, and patriotism to navigate the risks associated with Chinese investment in Nigerian ports.
By adopting a cautious and strategic approach, he said Nigeria can ensure that these projects contribute to the country’s long-term economic development.
Speaking with Daily Sun, former Acting President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, said the first thing the federal government has to do is to indigenize freight forwarding.
“I am one of those who have been shouting that the way foreigners are taking over our maritime industry will be a big problem. I have been saying it for the past five years. Even at the Council, I have sponsored this bill. Let us indigenize freight forwarding. That’s number one. The Chinese company came up with the idea of building railways for us. Now they have a freight forwarding firm.
“They are the ones that will import the rail system equipment. They will see clearly what is the role of indigenous freight forwarders or Nigerians. Nobody seems to be talking about that. Nigeria is sliding to an area where phonophobia is very, very imminent. If anything is not done. We are losing project cargo on a daily to foreigners.
According to him, not only the Chinese, Indians, and Lebanese are involved too, saying the dominance now is the Chinese and the federal government is looking away. “Let me shock you. I went to do an export. I wanted to do an export a few months ago. I got my product, ‘Sobo’ from Kano. This container will cost me N20 million or twenty-something million. When I went to the shipping company for freight, the shipping company gave me $1,200 to ship my container from here to abroad. I requested a rebate. A rebate was not given to me. Meanwhile, the shipping company staff told me that the Chinese are giving $800 on their container.
“And Chinese ship nothing less than $300 to $400 a container every month. Meaning that if I’m even doing that business, already I’m at a loss. I have a shortage of about $300 to $400 per container. So how can I compete with such people in my own country? That is the level at which we are now.
“Finally, and finally, if you go to the eastern northern part of Nigeria, where we have our mineral resources, the Chinese have bought all the lands, gave the government, the governors, N1 billion, N2 billion, to the extent that it is Nigerian police and military men that are protecting them, beating up Nigeria in those farms. And they’re exploring these are our mineral resources, taking them away, it is unaccounted for.
I don’t know why the federal government is not serious about this. Honestly, I’m afraid,” he said.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said the first is that some Chinese projects are on a PPP basis, public-private partnership, and not all the projects are loans.
“But if we talk about loans, we need to be careful the way we expose ourselves to some of these loans. So that we don’t run into the challenges of not being able to service those loans. So for me, I think it’s critical. But we need to identify which of those projects are PPP and which of those projects are outright loans.
“And if you are taking any facility for loan, I mean, yes, if you are borrowing from Chinese in respect of any facility, we have to be sure that it must be infrastructure that can repay the loan, but that can facilitate the capacity of the economy to be able to repay the loan. I hope you understand.
“So you don’t take a loan just for taking a loan. If it is a loan that will help to improve your infrastructure, improve the economic returns and all of that, there is something wrong with it, rather than take loans that you cannot even account for. You know, there are many of those loans that you have taken; you can’t point to what exactly they have used the loan for. But for this particular one, I think you can point to something. So what is important is to ensure that you are taking such facilities,” he said.
He said the government must properly assess its capacity to service any loan, saying the government need to be sure that they are taking it for the right kind of infrastructure that can either repay the loan itself or strengthen the capacity of the economy to repay the loan.
China’s growing footprint in African ports also advances its military objectives. Some of the 78 port sites that Chinese firms are involved in can berth PLA Navy vessels based on their specifications while others can dock PLA Navy vessels on port calls.
Daily Sun learnt that the PLA Navy has called on the following African ports in recent years: TinCan (Nigeria), Abidjan (Côte d’Ivoire), Gentil (Gabon), Casablanca (Morocco), Tamatave (Madagascar), Maputo (Mozambique), Pointe-Noire (Republic of Congo), Victoria (Seychelles), Durban (South Africa) and Simon’s Town (South Africa).
Some of these ports have also been staging grounds for PLA military exercises. These include the ports of Dar es Salaam (Tanzania), Lagos (Nigeria), Durban (South Africa), and Doraleh (Djibouti).
Chinese state-owned firms are active stakeholders in an estimated 78 ports across 32 African countries as builders, financiers, or operators.
Stakeholders hinted that Chinese port developments are concentrated in West Africa, with 35 compared to 17 in East Africa, 15 in Southern Africa, and 11 in North Africa.
With a total of 231 commercial ports in Africa, Chinese firms are present in over a quarter of Africa’s maritime trade hubs. This is a significantly greater presence than anywhere else in the world.
But today, some of these African countries are losing control of their ports to Chinese firms due to the inability to repay the loans collected to build or repair their ports.
For instance, Djibouti is now struggling to repay Chinese loans, potentially ceding control of its strategic port, while Sri Lanka has lost control of its Hambantota port to China after failing to repay its loans.
This has given stakeholders concern over the Chinese investment in Nigerian ports, which they described as part of its broader strategy to expand its economic and military presence in Nigeria.