Ekiti State Governor, Mr, Ayodele Fayose, has written to the
Chinese President, Xi Jinping, to turn down President Muhammadu
Buhari's request for a $2 billion loan from China . The letter (Ref. EK/GOV/28/10) which was delivered to
the Chinese Embassy in Abuja by top officials of the Ekiti State Government
will also be given directly to the Chinese leader by Gov Fayose has already
left the country to China. Incidentally, President Buhari is still in China on a
state visit. Below is the letter:
*Gov Fayose |
“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, Muhammadu 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.
*President Buhari meeting with President XI Jinping of China |
“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 cost 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.”
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