Publish terms and conditions of all loans or we meet in court, labour, CSOs tell Nigerian govt

The federal government was on Monday threatened with a legal action if it failed to immediately publish the terms and conditions of all loans it has taken so far.

The threat was contained in a statement issued by the Nigeria Labour Congress, the Trade Union Congress and 80 other organisations, under the aegis of the Alliance for Surviving COVID-19 and Beyond (ASCAB).

The statement was signed by its Chairman, Mr Femi Falana, (SAN); the NLC President, Ayuba Wabba and his TUC counterpart, Quadri Olaleye, who are both co-chairmen, threatening a legal action against the government if it failed to publish details of the loans.

It would be recalled that there has been anxiety over the foreign loans obtained by the Federal Government after the House of Representatives Committee on Treaties, Protocols and Agreements said government waived the country’s sovereignty in an agreement signed for a $400 million loan from China.

The Minister of Transport, Rotimi Amaechi however appealed to the committee to suspend all investigations into the loans from China, claiming that continuing with the investigation would cost the nation fresh loans it is negotiating with the Asian country.

But ASCAB in its statement titled, ‘‘ASCAB demands full disclosure of all loans obtained by Nigeria,’ said it would “challenge the authorities in court if the disclosures were not made”, while also calling on the National Assembly to reveal the terms and conditions of all foreign loans.

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It however said that if the National Assembly failed to disclose the terms and conditions of the loans, the Debt Management Office should publish the terms and conditions of all external loans, or face legal fireworks.

ASCAB, which lamented that Nigeria’s debt profile which was N12.118tn as of May 2015 had leaped to N27.401tn in 2019, stating that the figure represented more than 100 per cent debt increase adding that by 2020, the nation had seen an astrological surge in the country’s external debts.

According to the group, recent revelations at the National Assembly had confirmed the fact that the loans were taken without proper public scrutiny, adding that a committee of the House of Representatives was feigning ignorance concerning the terms and conditions attached to a particular loan agreement.

The group also warned that the huge debt being incurred for the country had the potential of stifling the prospects of economic liberation and political freedom of the people.

It also noted that within one year, the National Assembly had approved a total of $28bn loans for President Muhammadu Buhari with no commensurate improvement in the quality of lives of many Nigerians.

The group said: “Millions of Nigerians continue to face harsh economic difficulties, lacking access to basic needs, yet the debt profile of the country continues to increase.

“It is even more grievous that the government continues to take loans on behalf of the people without their consent neither their keen understanding of the terms.”

ASCAB further noted that the National Assembly appeared desperate to pull wool over the face of Nigerians by covering up its tracks regarding the clause in the Chinese loans.

It added: “The opaque nature of the loans is against the principles of the Nigerian constitution,” ASCAB said, citing Section 21(1) of the Debt Management Office Establishment (ETC) Act, 2003 (DMO Act) which states that no external loan shall be approved or obtained by the minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution.”

According to ASCAB, information from the Debt Management Office indicated that the total value of loans taken by Nigeria from China as of March 31, 2020, was $3.121bn.

It also noted that it was an indication that the Chinese loan was some 3.94 per cent of Nigeria’s total public debt of $79.303 as of March 31, 2020 while external sources of funds, loans from China accounted for 11.28 per cent of the external debt profile of $27.67 at the same date.

“The loans were obtained with interest rates of 2.5 per annum, to be paid in 20 years with a moratorium of seven years,” it added.

The coalition also questioned the rationale behind the jumbo loans, insisting that sources of boosting public funds had either yet to be fully explored or completely ignored

“The country’s level of poverty continues to increase with the skyrocketing loans obtained by the Federal Government.

“Poverty, extreme hunger, frivolous lifestyles of public office holders continue to fuel violence and public disorder across the country.

“Why the government has responded effectively to the needs of public officials including members of the National Assembly, the economic and social needs of the people remain a mirage,” the coalition said.

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