The Minister of Transportation, Rotimi Amaechi, says the Nigerian government has the capability to pay back loans collected for the construction of rail projects within the stipulated period of 20 years.
Mr Amaechi, in a statement on Saturday, said China was the only country giving out loans with a low-interest rate of 2.8 per cent.
He said no country in the world would give out a loan without a guarantee to pay back such loans.
“The trade agreement between Nigeria and China, the ministry of transportation does not take loan, everything about loan is directed to the Ministry of Finance, so, I couldn’t have signed any loan because I don’t take loan.
“What I signed is what is called commercial contract, which is contract between the Federal Government and CCECC as a contractor, the contract between Nigeria and China is usually signed by the ministry of finance.
“Whether is the ministry of finance that signed it or the ministry of transportation, the issue is that nobody will give you loan free of charge.
“There must be an agreement and such agreement must contain some terms, that doesn’t mean that you are signing away the sovereignty of the country, no country will sign out its sovereignty.
“What clause 8 says is, I expect you to pay according to those terms we have agreed, if you don’t pay, don’t throw your immunity on me when I come to collect back the guarantee that was put forward, that is all.”