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Nigeria’s Transport Minister Says What Others Won’t: Who Else is Going to Lend Us Money for Infrastructure?

Nigeria’s embattled Transportation Minister Rotimi Amaechi appeared on national TV again on Tuesday to try and clear up the rumors and misinformation surrounding a $500 million Chinese loan, which includes a “sovereign immunity” clause.

That clause, now commonly known as “clause 8(1),” has sparked a level of controversy bordering on moral panic, with people accusing the government of selling out Nigeria’s sovereignty to China. But many commentators don’t understand that the clause in question is a waiver of commercial immunity in the event that Nigeria defaults on the loan and would then permit the two sides to access arbitration to settle the dispute.

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