By Abiola Olawale
The Socio-Economic Rights and Accountability Project (SERAP) has written to the 36 governors of the Nigerian Federation and the Minister of Federal Capital Territory (FCT), Nyesom Wike, seeking the immediate disclosure of details of any Chinese loans, liabilities, and other external borrowing obtained by their respective states.
The human rights group is also demanding the disclosure of the terms and conditions for all Chinese loans, including the provisions on collateral.
This was contained in a statement issued by the deputy director of SERAP, Kolawole Oluwadare.
According to the statement, the various state governments should “clarify any investment agreements with Chinese companies and repayment histories of any loans, liabilities and facilities obtained from China and other external creditors and guaranteed by the Federal Government.”
The statement reads in part: “We are concerned that your state and the FCT may have failed to efficiently manage your debt obligations, especially your external debt and investment obligations, as guaranteed by the Federal Government,” the statement read.
“The failure to uphold your obligations is contrary to Section 6 of the Debt Management Office Establishment (Etc), Act, and creates financial risks and other exposure to Nigeria concerning these Chinese loans, liabilities and other external borrowing.
“These Chinese loans, liabilities, and other external borrowing by your state and the FCT may not have been used for the purposes for which they have been obtained, as well as the terms and conditions guaranteed by the federal government.
“SERAP is concerned that there is a significant risk of defaults of the Chinese loans, liabilities, and other external borrowing by your state and the FCT, which are guaranteed by the Federal Government.
“There are also significant risks of confiscation of Nigerian assets in foreign jurisdictions by multilateral and bilateral agencies and other creditors in cases of failure by your state and the FCT to satisfactorily observe and fulfil the terms and conditions of the Chinese loans, liabilities and other external borrowing which are guaranteed by the Federal Government.
“The apparent inadequacy of safeguards and accountability mechanisms for these Chinese loans, liabilities and other external borrowing may also expose Nigeria’s assets in foreign jurisdictions to confiscation.
“Your state and the FCT have a shared obligation to ensure that the spending and repayment plans of Chinese loans, liabilities, facilities and other external borrowing are consistent with the provisions of national and international standards, and to prevent or mitigate risks of confiscation of Nigerian assets abroad.
“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government and the FCT to comply with our request in the public interest.
“Despite several external loans, liabilities, investment obligations and external borrowing obtained by your state and the FCT, which are guaranteed by the Federal Government over many years, millions of Nigerians in your state and the FCT continue to lack access to regular electricity supply and have been denied the benefit of renewable energy solutions.
“A recent report by the National Bureau of Statistics (NBS) revealed that over 133 million Nigerians are living in different categories of poverty, the majority of them women and children.
“SERAP is seriously concerned that many of the country’s 36 states and FCT are allegedly mismanaging public funds which may include Chinese loans, liabilities and other external borrowing obtained from bilateral and multilateral institutions and agencies and guaranteed by the Federal Government.
“We urge you to disclose the spending details of these Chinese loans, investment obligations and external borrowing, including details of and locations of projects as well as the implementation status and completion reports, if any, on the projects.”
This is coming after Ogun State has been in the news over a business dispute with a Chinese company, Zhongshan Fucheng Industrial Investment Co.Ltd.
The dispute has since escalated into the seizure of three presidential jets and other properties owned by the Federal Government of Nigeria.
