The US Department of State has indicated that China holds the capacity to exert influence on the Nigerian government through its loans, as stated in the Integrated Country Strategies document.

The document, initially approved in April 2022 and updated in June 2023, underscores concerns over China’s sub-prime financing for various infrastructure projects in Nigeria, which could potentially contribute to an unnecessary increase in the country’s debt and grant China greater influence over Nigerian governance.

The US report points to the fact that China Civil Engineering Construction Corporation (CCECC), backed by Chinese financing, has dominated Nigeria’s railway construction sector.

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Notably, China’s role in Nigeria’s railway projects, such as the Lagos-Calabar coastal railway and the Abuja-Itakpe-Warri rail line, has raised concerns over China’s growing influence.

The document also criticizes Nigeria’s political and economic system, highlighting the issue of patronage-based decision-making and a lack of coordination between ministries.

It emphasizes that short-term personal interests of political and economic elites often take precedence over the long-term stability and unity of the nation.