Don’t grant Nigeria any loan, Fayose writes Chinese govt

Governor of Ekiti State, Mr. Ayodele Fayose, has taken his opposition to the $2 billion loan the Federal Government is negotiating with the Chinese government a step higher, by writing to the government of the Asian country  not to accede to the request.

The letter, written by the governor on Thursday, was addressed to the Chinese President, X Jinping.

According to Fayose, Nigerians of different background, styles and political affiliation are opposed to the loan because they do not want an increase in the debt burden of the nation.

It would be recalled that President Muhammadu Buhari is currently in China to negotiate the loan with the Chinese government.

The letter, dated April 2, 2016, with reference number: EK/GOV/28/10, was delivered by Fayose’s Chief of Staff, Barrister Dipo Anisulowo, in Abuja on Thursday, through the Chinese Ambassador to Nigeria, Gu Xiaojie.

He was accompanied by Deputy Speaker of the State Assembly, Segun Adewumi; Chairman of the House Committee on Information, Gboyega Aribisogan; Chairman of the House Committee on Health, Samuel Omotosho; and the Special Assistant to the Governor on Public Communications and New Media, Lere Olayinka

According to the governor, some of the projects for which the loan was being sought were not captured in the controversial 2016 budget, which has been sent to President Buhari by the National Assembly for his assent.

Speaking after delivering the letter, Anisulowo, said Governor Fayose, who is in China, will deliver a copy of the letter directly to the Chinese President.

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The letter reads in part, “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.

“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 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.”

 

 

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