China may withhold part of the $29.9billion loans on which Nigeria partly pins its hope of financing next year’s N7.298 trillion budget.
The Chinese government is said to be upset by the Federal Government’s diplomatic recognition of Taiwan as a sovereign nation.
The “cold war” over Taiwan may also affect the implementation of the $80billion MoU between the Nigerian National Petroleum Corporation (NNPC) and China.
The Nation learnt that the Chinese Government raised the matter when President Muhammadu Buhari visited Beijing. He assured his hosts that the status of Taiwan Marketing Mission will be downgraded, but till now nothing has been done.
Taiwan and its associated territories are regarded as a province of China.
The Chinese government got intelligence report that Taiwan Marketing Mission had been operating as a full-fledged mission since the days of ex-President Goodluck Jonathan.
All efforts to reverse the status were said to have fallen on deaf ears.
Nigeria is seeking $29.9billion loans to augment its plans to finance its budget which was presented to the National Assembly on Wednesday by President Buhari.
But the expected components from China EximBank may not come until the diplomatic status of Taiwan Marketing Mission is “well-defined”, a source told The Nation.
The source, who pleaded not to be named because of “the sensitive nature of the matter”, said: “The Chinese government is now a bit reluctant to grant loans to Nigeria through its EximBank because of the issue of distrust between the two nations over Taiwan."
