The Ekiti State Governor, Ayodele Fayose, has
written to the Chinese Government seeking
the stoppage of the $2 billion loan being
sought by the Federal Government of Nigeria.
President Buhari’s visit to China this week
was to discuss the development of the
country’s infrastructure, including a $2 billion
loan for railway projects.
But Fayose said in his letter to President Xi
Jinping of China: “The government of China
should be mindful of the fact that Nigerians,
irrespective of their political and religious
affiliations are totally opposed to increment of
the country’s debt burden, which is already
being serviced with 25 per cent of the Federal
Government annual budget.”
In the letter dated April 12, 2016, with
reference number: EK/GOV/28/10, addressed
to President Jinping and delivered by Fayose’s
Chief of Staff, Barrister Dipo Anisulowo, in
Abuja on Thursday, through the Chinese
Ambassador to Nigeria, Gu Xiaojie, the
Governor said some of the projects for which
the loan was being sought were not captured
in the controversial 2016 budget, which has
been sent to President Buhari by the National
Assembly for his assent.
Anisulowo, who was accompanied by Deputy
Speaker of the State House of Assembly, Hon.
Segun Adewumi; the Chairman of the House
Committee on Information, Gboyega
Aribisogan; the Chairman of the House
Committee on Health, Dr. Samuel Omotosho;
and the Special Assistant to the Governor on
Public Communications and New Media, Lere
Olayinka, said Governor Fayose, who is in
China, will also deliver a copy of the letter
directly to the Chinese President.
The letter reads: “I write as one of the major
stakeholders in the project Nigeria, and a
governor of one of the federating units making
up Nigeria, to draw your attention to report
that the Federal Government of Nigeria is on
the verge of obtaining a $2 billion loan from
the Export-Import Bank of China.
“This $2 billion loan is part of the N1.84
trillion the Federal Government of Nigeria has
proposed to borrow to finance the 2016
budget, which is yet to be signed by the
President, Mohammadu Buhari owing to
unending controversies between the Executive
and Legislative arms of government.
“According to reports, Nigeria desires to raise
about $5 billion abroad to cover part of its
2016 budget deficit. This is projected to hit N3
trillion ($15 billion) due to heavy
infrastructure spending at a time when the
slump in global oil prices has slashed the
country’s export revenues.
“While conceding that all nations, especially
developing ones need support to be able to
grow because no nation is an island, I am
constrained to inform you that if the future of
Nigeria must be protected, the country does
not need any loan at this time.
“The government of China should be mindful
of the fact that Nigerians, irrespective of their
political and religious affiliations are totally
opposed to increment of the country’s debt
burden, which is already being serviced with 25
per cent of the Federal Government annual
budget.
“It will interest the government of China to
know that some of the projects for which the
loan is being sought are not captured in the
controversial 2016 budget, which has been
sent to the President by the National Assembly
for his assent. For instance, the Lagos –
Calabar Rail project was not included in the
budget proposal the President presented to
the National Assembly and it was not included
in the Appropriation Bill passed by the
National Assembly.
“Most importantly, Nigeria is presently
servicing debt with about 25 per cent of its
annual budget and what will happen to the
economy in 2017, when the country will begin
to service the additional debt to be incurred
this year is better imagined than experienced.
“The Chinese government must also be aware
that some western nations approached by the
Federal Government for loan diplomatically
and cleverly declined.
“This must have been informed by the
suspicion in the present government’s capacity
to salvage the nation’s economy as well as the
sincerity in the fight against corruption. More
so that Nigeria’s Foreign Reserve, which is the
only guarantee for foreign loan has declined to
a very uncomfortable level.
“For instance, the UK Telegraph Newspaper
reported today that hundreds of millions of
pounds of British foreign aid given to Nigeria
to help combat Boko Haram terrorists is
instead being used to fund a witch-hunt
against opposition politicians.
“Therefore, like the foreign aid that is
reportedly being mismanaged, whatever loan
that is granted to the Federal Government of
Nigeria by the Chinese Government may be
mismanaged too.
“In my opinion, Nigeria needs the
collaboration of the Government of China in
the area of technology transfer, rather than
granting loan that will be mismanaged under
the guise of building infrastructure.
“It is also important for the Government of
China to note that the Federal Government of
Nigeria claimed to have recovered and still
recovering trillions of Naira allegedly looted
from the treasury. For instance, over $200
billion is expected to be recovered from Dubai,
the United Arab Emirate while N3 trillion was
said to have been saved from the Treasury
Single Account (TSA).
“The Federal Inland Revenue Service (FIRS) has
also said that it will generate not less than
N4.5 trillion this year. What then is the
rationale behind the $2 billion loan from
China?
“As a result of the government’s bad economic
policies, the middle class has been eliminated,
power supply is at its lowest ebb, petrol is not
available and by the time fresh loans begin to
pile up, 95 per cent of Nigerians will definitely
be pauperised.
“Particularly, by the autocratic nature of our
president, the Federal Government is not
prepared to listen to wise counsel, hence the
desperation to take unwarranted loans even if
the future of Nigeria and its people will be
mortgaged.
“It will also interest Your Excellency that our
presidents visit to china will be his 28th trip
outside Nigeria since he assumed office 10
months ago and this unnecessary foreign trip
is estimated to have cause the country $50
million.
“I therefore appeal to Your Excellency to assist
Nigeria and its people in the area of
technology transfer so as to limit importation
of goods and services, rather than granting
the country unnecessary loan.
“In conclusion, I wish to state that this letter
and information became necessary for
posterity sake and to put it on record that
when the future of Nigeria and its people was
going to be mortgaged through loan from the
People’s Republic of China, I stood up to be
counted in defence of our country.”
Source : Eagle online
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