The Socio-Economic Rights and Accountability Project (SERAP) has called on all 36 state governors and the Minister of the Federal Capital Territory, Nyesom Wike, to publicly disclose the details of any Chinese loans, liabilities, and other external borrowings obtained or guaranteed by the Federal Government.
In a statement released on Sunday by SERAP’s Deputy Director, Kolawole Oluwadare, the organization urged the governors to provide full transparency regarding any debt restructurings, including the terms and conditions of such borrowings, especially those involving collateral agreements.
SERAP also requested the governors to clarify the specifics of any investment agreements with Chinese companies, as well as the repayment histories associated with any loans or liabilities from China and other foreign creditors.
The statement highlighted, “We are concerned that your state and the FCT may not have efficiently managed your debt obligations, particularly your external debt and investment responsibilities guaranteed by the Federal Government.
“Failing to meet these obligations contradicts Section 6 of the Debt Management Office Establishment (Etc) Act and exposes Nigeria to financial risks and other liabilities related to these Chinese loans and external borrowings.”
“These Chinese loans and other external borrowing by your state and the FCT may not have been used for their intended purposes, raising concerns about the terms and conditions guaranteed by the federal government.”
SERAP expressed further concerns about the potential risk of defaults on these Chinese loans and other external borrowings, which could result in severe consequences, including the seizure of Nigerian assets in foreign jurisdictions by international agencies and other creditors.
“There is a significant risk that Nigerian assets abroad could be confiscated if your state and the FCT fail to adequately adhere to the terms and conditions of these Chinese loans and external borrowings,” they added.
SERAP emphasized the lack of accountability mechanisms surrounding these loans, which could leave Nigeria’s assets vulnerable to confiscation in foreign countries. To address these concerns, SERAP issued a seven-day ultimatum for the governors to disclose detailed spending plans for the Chinese loans, investment obligations, and other external borrowing. Failure to do so could result in legal action.
The statement continued, “Your state and the FCT have a shared responsibility to ensure that the spending and repayment strategies for these Chinese loans, liabilities, and other external borrowings align with national and international standards, thereby preventing or mitigating the risks of asset confiscation abroad.
“We would appreciate it if the recommended actions are taken within seven days of receiving or publishing this letter. If we do not receive a response, SERAP will consider pursuing legal actions to compel your government and the FCT to comply with our request in the public interest.”
SERAP urges governors, Wike to disclose details of Chinese loans
Author: Fathia Gbadamosi
The Socio-Economic Rights and Accountability Project (SERAP) has called on all 36 state governors and the Minister of the Federal Capital Territory, Nyesom Wike, to publicly disclose the details of any Chinese loans, liabilities, and other external borrowings obtained or guaranteed by the Federal Government.
In a statement released on Sunday by SERAP’s Deputy Director, Kolawole Oluwadare, the organization urged the governors to provide full transparency regarding any debt restructurings, including the terms and conditions of such borrowings, especially those involving collateral agreements.
SERAP also requested the governors to clarify the specifics of any investment agreements with Chinese companies, as well as the repayment histories associated with any loans or liabilities from China and other foreign creditors.
The statement highlighted, “We are concerned that your state and the FCT may not have efficiently managed your debt obligations, particularly your external debt and investment responsibilities guaranteed by the Federal Government.
“Failing to meet these obligations contradicts Section 6 of the Debt Management Office Establishment (Etc) Act and exposes Nigeria to financial risks and other liabilities related to these Chinese loans and external borrowings.”
“These Chinese loans and other external borrowing by your state and the FCT may not have been used for their intended purposes, raising concerns about the terms and conditions guaranteed by the federal government.”
SERAP expressed further concerns about the potential risk of defaults on these Chinese loans and other external borrowings, which could result in severe consequences, including the seizure of Nigerian assets in foreign jurisdictions by international agencies and other creditors.
“There is a significant risk that Nigerian assets abroad could be confiscated if your state and the FCT fail to adequately adhere to the terms and conditions of these Chinese loans and external borrowings,” they added.
SERAP emphasized the lack of accountability mechanisms surrounding these loans, which could leave Nigeria’s assets vulnerable to confiscation in foreign countries. To address these concerns, SERAP issued a seven-day ultimatum for the governors to disclose detailed spending plans for the Chinese loans, investment obligations, and other external borrowing. Failure to do so could result in legal action.
The statement continued, “Your state and the FCT have a shared responsibility to ensure that the spending and repayment strategies for these Chinese loans, liabilities, and other external borrowings align with national and international standards, thereby preventing or mitigating the risks of asset confiscation abroad.
“We would appreciate it if the recommended actions are taken within seven days of receiving or publishing this letter. If we do not receive a response, SERAP will consider pursuing legal actions to compel your government and the FCT to comply with our request in the public interest.”
“Despite multiple external loans, liabilities, and investment obligations obtained by your state and the FCT over the years, millions of Nigerians in your state and the FCT continue to lack regular electricity supply and have not benefited from renewable energy solutions.”
“SERAP is deeply concerned that public funds, which may include Chinese loans, liabilities, and other external borrowings obtained from bilateral and multilateral institutions and guaranteed by the Federal Government, are allegedly being mismanaged by many of the country’s 36 states and the FCT.”
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“Despite multiple external loans, liabilities, and investment obligations obtained by your state and the FCT over the years, millions of Nigerians in your state and the FCT continue to lack regular electricity supply and have not benefited from renewable energy solutions.”
“SERAP is deeply concerned that public funds, which may include Chinese loans, liabilities, and other external borrowings obtained from bilateral and multilateral institutions and guaranteed by the Federal Government, are allegedly being mismanaged by many of the country’s 36 states and the FCT.”
