Rising Debt: Row As Atiku Writes NASS, Advises Lawmakers Against Approving FG’s Unviable Loan Requests

• Group To Ex-VP: ‘You Lack Moral Ground To Talk …Address Jefferson’s Scandal’

Former Vice President Atiku Abubakar has warned the National Assem­bly against approv­ing further loan request brought before it by the President Muhammadu Buhari-led administration amidst a row.

Atiku, who lamented over the piling debts in the last five years, noted that as at May 29, 2015, Nigeria’s total national debt stood at approximately N12 trillion, adding that as at August 2020, the total national debt tripled to N28.63 trillion.

Atiku, a presidential candidate of the People’s Democratic Party in the 2019 elections had raised his concerns in a letter entitled: ‘Nige­ria Must Avoid a Debt Crisis’, written on Au­gust 19, 2020 and reportedly received by the President of the Senate, Dr Ahmad Lawan, on August 25, 2020.

The former Vice President added that the por­tion of the foreign national debt has increased from less than $10 billion as at May 29, 2015 to $30 billion as at August 2020.

However, a group which goes by the name of Coalition for Development and Consolidation(CDC) has asked former Vice President Abubakar to address what it called unresolved  controversy over  Congressman William Jefferson alleged bribe deals for which the latter (Jefferson)was investigated, tried, convicted and jailed in the United States.

The CDC in a statement signed by Comrade Abiodun Ogunsola, its national organizing secretary and William Jack-Tomboro, publicity Secretary said the former Vice President lacks the moral high-ground to speak on the issue of loan request by  Buhari -led government.

According to the CDC, Atiku should first ” go and clear his name over the William Jefferson bribe controversy and scandal which broke several years ago….and for which he has not satisfactorily defended himself.”

The CDC said: ”  We are not saying go and borrow or pile up debts in Nigeria.  But we are simply saying Atiku is not qualified to pontificate on this subject matter…Let others with high moral ground speak on the matter.”

The New Diplomat recalls in a statement issued on June 18, 2020, the Nigeria’s Debt Management Office (DMO) had explained that the country’s total public debt as of March 2020 stood at $79.3 billion, while external debt was $27.6 billion.

“As at March 31, 2020, the Total Borrowing by Nigeria from China was USD3.121 billion (N1,126.68 billion at USD/N361). This amount represents only 3.94% of Nigeria’s Total Public Debt of USD79.303 billion (N28,628.49 billion at USD/N361) as at March 31, 2020. Similarly, in terms of external sources of funds, Loans from China accounted for 11.28% of the External Debt Stock of USD27.67 billion at the same date,” the statement read.

According to Atiku in his letter, a study of how the monies have been utilized shows that much of it has allegedly gone towards items or projects that are not productive.

He also advised the Buhari’s government against committing itself to some loan deals that could make the country be in the league of nations that have technically lost their independence, due to inability to repay procured loans.

Atiku’s letter reads: “I am writing to you and your colleagues on an is­sue that is urgent and import­ant as regards to our nation­al security. Without mincing words, the nation is in danger of entering a debt crisis. That is if we are not already in one.

“On May 29, 2015, Nigeria’s total national debt stood at ap­proximately N12 trillion. As at August 2020, our national debt has tripled to N28.63 trillion. Even more alarming is the fact that the foreign debt por­tion of our national debt has risen from less than $10 bil­lion on May 29, 2015 to almost $30 billion in August 2020.

“A further cause for con­cern is the fact that not all of these debts are necessary. A study of the use to which these monies have been put to will show that much of it has gone towards items or projects that are nonproduc­tive or viable.

“Another issue arising are the terms and conditions of the loans which may if care is not taken put Nigeria in the same situation as nations which have lost some of their independence due to their inability to service or repay their debts.

“It is prudent that I do not go into too much detail in order that panic does not set in amongst the citizenry and the economy. However, I am aware that Distinguished Senators have been apprised of the full detail of these trou­bling facts and that in public and in private many of our pa­triotic parliamentarians have shared these same concerns I have raised here.

“What should be done? We must do something. We can­not watch askance while our nation teeters towards finan­cial peril and the future of our youths, as well as generations yet unborn, have been placed in what could very well be bondage-like conditions. We must take decisive action.

“As such, in view of your role as a check on the excesses of other arms of government, may I suggest that going for­ward, the National Assembly should refuse to approve any new loan requests, where such loans are to be spent on projects or items that are not income generating or produc­tion based or indeed viable.”

But the CDC in its reaction posited that Atiku lacks the moral high-ground to pen a letter to the National Assembly on the above subject matter, referencing the Jefferson scandal.  Recall that Jefferson, a US congressman was convicted in 2009 on corruption charges after he was caught with large cash inappropriately starched in his freezer.

Jefferson who had spent about 18 years in the House of Representatives was later found guilty of accepting more than $400,000 in bribes and seeking millions more in exchange to act as a middleman in facilitating business deals in African countries including Nigeria.

During investigation, the funds were traced to a technology firm which goes by the name iGate, Inc., of Louisville, Kentucky, USA.  It was reported that Jefferson’s name came up as a broker who would persuade the U.S. Army to test iGate’s broadband,  and thus leverage on his standing and connections to convince  top government officials in Nigeria, and other West African countries to sign on to  deals for iGate.

Jefferson had reportedly told a potential investor, Lori Mody that he would need to give Nigerian Vice President Atiku Abubakar $500,000 “as a motivating factor” to ensure they obtained contracts for iGate and Mody’s company in Nigeria. Later on, FBI agents raided Jefferson’s home in Washington and his journey to jail began. However, till date, it remains unclear if Atiku  was ever indicted in the case.

On his part, Atiku has consistently maintained his innocence and challenged anyone to prove or establish his alleged involvement in corruption, and indeed the Jefferson scandal. This controversy came up during the  2019 presidential elections in which Atiku ran on the platform of the PDP.

Atiku in some interviews  in 2019 reportedly denied any involvement or link in the Jefferson corruption scandal. “ On the issue of corruption, I challenge anyone, anywhere, who has any evidence of corruption against me to come forward. I am sure they would have combed everywhere trying to find anything incriminating against me, but they have not found it, or they are still searching,” the former Vice President said.

The former Vice president also accused his critics and opposition forces of lacking business acumen, and are thus always trying to undermine credible businessmen and women who make their fortunes genuinely in Nigeria.

Loyalists of Atiku also pointed accusing fingers at a prominent South-West political actor for reportedly trying to raise dust where there is none. ” We know where this controversy  is coming from in the South-West. It is all about 2023 race.  But he is making a mistake. He thinks he will even get a ticket to contest…”, said an Atiku loyalist.