Reject Buhari's Loan Application - Gov Fayose Tells Chinese Govt

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 

“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, 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.

If I Were Buhari…

By Okey Ndibe

…I would not have traveled to China. Not at this time, no. In fact, I would tell my Chinese hosts today that I must abbreviate my weeklong visit and return immediately to my office in Abuja.

I know that some defense could be made for the current trip to China. Presidential spokesman Femi Adesina seemed to anticipate the objections to the president’s current excursion, and preemptively cast the trip in entirely positive light. “President Muhammadu Buhari,” he wrote in a press statement, “will leave Abuja…for a working visit to China aimed at securing greater support from Beijing for the development of Nigeria's infrastructure, especially in the power, roads, railways, aviation, water supply and housing sectors.”
 
He continued: “President Buhari's talks with President Xi Jinping, Premier Li Keqiang and the Chairman of the Standing Committee of the National Peoples’ Congress, Zhang Dejiang will also focus on strengthening bilateral cooperation in line with the Federal Government's agenda for the rapid diversification of the Nigerian economy, with emphasis on agriculture and solid minerals development.”
 
All that sentiment sounds high-minded and noble. Nigeria desperately needs to diversify its economy. Heck, a major tragic strain in the country’s mostly woeful narrative is the decades-long neglect of this imperative. Nigerians are paying the price for lazily laying all their eggs in the crude oil basket. We wagered on the globe staying eternally addicted to fossil fuel. We never reckoned that a time would come when there would be a glut of crude, or when the US, the world’s greatest consumer, would make a strategic turn toward domestic production.

Nigeria’s singular reliance on crude oil earnings meant a high degree of susceptibility to the capriciousness of the market. As oil prices plummeted into the valley, Nigerians suddenly realized that they were in a deep mess. Diversification of the economy, hitherto a fanciful phrase that cropped up in politicians’ speeches, became a rallying cry, one that President Buhari is rather fond of.
 
Yet, if I were Buhari, I would not only rush back to Abuja, I would also put a moratorium on all presidential foreign trips—until a semblance of normalcy returns to Nigeria.
 
As a military dictator, Mr. Buhari hardly traveled out of the country. In his civilian incarnation, he seems infected by Sokugo, the wandering spirit. In fact, his wanderlust rivals that of former President Olusegun Obasanjo’s first term in office. Like his predecessor, the incumbent president invokes the attraction of foreign investment to justify his junkets.