Politics
SERAP Urges Govs, Wike To Show Details Of Chinese Loans
The Socio-Economic Rights and Accountability Project (SERAP) has urged Nigeria’s 36 state governors and the Minister of the Federal Capital Territory (FCT), Abuja, Nyesom Wike to make public details of Chinese loans, liabilities, and other external borrowing obtained.
The demand, according to letters to the parties, covers loans by the sub-nationals, guaranteed by the Federal Government and the SERAP also wants to know the terms and conditions for any such borrowing including the provisions on collateral, according to a statement.
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The SERAP urged them to “provide details of the repayment obligations regarding any Chinese loans, liabilities and other external borrowing obtained and guaranteed by the Federal Government, the interest rates on the loans, and any defaults, debt restructurings, and debt exposure to China and other creditors.”
In addition, the SERAP also urged them to “clarify any investment agreements with Chinese companies and repayment histories of any loans, liabilities and facilities obtained from China and other external creditors and guaranteed by the Federal Government.”
In the letters, signed by its deputy director Kolawole Oluwadare, the SERAP wrote, “We are concerned that your state and the FCT may have failed to efficiently manage your debt obligations, especially your external debt and investment obligations, as guaranteed by the Federal Government.
“The failure to uphold your obligations is contrary to Section 6 of the Debt Management Office Establishment (Etc), Act, and creates financial risks and other exposure to Nigeria with respect to these Chinese loans, liabilities and other external borrowing.
“These Chinese loans, liabilities and other external borrowing by your state and the FCT may not have been used for the purposes for which they have been obtained and terms and conditions guaranteed by the Federal Government.”
The SERAP declared that, the “SERAP is concerned that there is a significant risk of defaults of the Chinese loans, liabilities, and other external borrowing by your state and the FCT, which are guaranteed by the Federal Government.
“There are also significant risks of confiscation of Nigerian assets in foreign jurisdictions by multilateral and bilateral agencies and other creditors in cases of failure by your state and the FCT to satisfactorily observe and fulfil the terms and conditions of the Chinese loans, liabilities and other external borrowing which are guaranteed by the Federal Government.
“The apparent inadequacy of safeguards and accountability mechanisms for these Chinese loans, liabilities and other external borrowing may also expose Nigeria’s assets in foreign jurisdictions to confiscation.
“Your state and the FCT have a shared obligation to ensure that the spending and repayment plans of Chinese loans, liabilities, facilities and other external borrowing are consistent with the provisions of national and international standards, and to prevent or mitigate risks of confiscation of Nigerian assets abroad.
“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government and the FCT to comply with our request in the public interest.
“Despite several external loans, liabilities, investment obligations and external borrowing obtained by your state and the FCT, which are guaranteed by the Federal Government over many years, millions of Nigerians in your state and the FCT continue to lack access to regular electricity supply and have been denied the benefit of renewable energy solutions.
“A recent report by the National Bureau of Statistics (NBS) revealed that over 133 million Nigerians are living in different categories of poverty, the majority of them women and children.
“SERAP is seriously concerned that many of the country’s 36 states and FCT are allegedly mismanaging public funds which may include Chinese loans, liabilities and other external borrowing obtained from bilateral and multilateral institutions and agencies and guaranteed by the Federal Government.
“We urge you to disclose the spending details of these Chinese loans, investment obligations and external borrowing, including details of and locations of projects as well as the implementation status and completion reports, if any, on the projects.
“According to Nigeria’s Debt Management Office, the total external debt for Ogun State is N168,833,006.66 as at December 31, 2023. The total public debt portfolio for the country’s 36 states and the Federal Capital Territory is N9.17 trillion.
“Nigeria’s total public debt stock, including external and domestic debts, increased by ₦24.33 trillion in three months alone, from ₦97.34 trillion ($108.23 billion) in December 2023 to ₦121.67 trillion ($91.46 billion) as of March 31, 2024. The debt represents external and domestic loans obtained by the Federal Government, the 36 state governments and the FCT.
“SERAP notes that the World Bank has approved several loans and other funding facilities to the country’s 36 states including the recent $750 million credit line meant to the states to carry out reforms to attract investment and create jobs.
“The World Bank on 15 December 2020 approved a $1.5 billion loan for Nigeria’s 36 states and the FCT for social protection and strengthened state-level COVID-19 response. The loan aims to help the states build a resilient recovery post-COVID19 and to reduce poverty.
“SERAP is concerned that the Chinese loans and other external borrowing obtained by your state and guaranteed by the Federal Government are vulnerable to corruption and mismanagement.
“Publishing details of the Chinese loans, liabilities, investment obligations and other external borrowing obtained by your state and the FCT which are guaranteed by the Federal Government would allow Nigerians to scrutinise them.
“Section 39(1) of the Nigerian Constitution 1999 [as amended], section 44 of the Fiscal Responsibility Act and article 9 of the African Charter on Human and Peoples’ Rights to which Nigeria is a state party impose legal obligations on your state and the FCT to disclose the details sought.
“Section 41 of the Fiscal Responsibility Act provides: ‘1) The framework for debt management during the financial year shall be based on the following rules: a. Government at all tiers shall only borrow for capital expenditure and human development, provided that, such borrowing shall be on concessional terms with low interest rate and with a reasonable long amortization period subject.’
“Section 44 of the Fiscal Responsibility Act provides: ‘1) Any Government in the Federation or its agencies and corporations desirous of borrowing shall, specify the purpose for which the borrowing is intended and present a cost-benefit analysis, detailing the economic and social benefits of the purpose to which the intended borrowing is to be applied.’
“According to section 21(1)(2) of the Debt Management Office Establishment (Etc), Act, ‘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. (2) The Federal and State Government or any of their agencies shall not obtain any external loan except with a guarantee issued by the Minister.’”
The House of Representatives has adopted the report on the four tax reform bills of the President Bola Ahmend Tinubu administration.
The house made the adoption on Thursday at plenary in Abuja.
Having scaled the lower house, the tax reform bills now await the endorsement of the Senate.
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Notably, the adopted bills include the Nigerian Tax Bill, the Tax Administration Bill, the Revenue Tax Board Bill, and the Nigerian Revenue Service Establishment Bill.
The chairman of the House of Representatives Committee on Finance, Hon James Abiodun Faleke, said, “These bills underwent three full days of public hearings, with input from over 80 key stakeholders. Afterwards, we held an eight-day retreat to debate each clause.”
He assured Nigerians that the tax reform bills would produce widely acceptable laws.
“I am glad that House members recognised our thorough work and approved all our recommendations,” Faleke said.
He thanked fellow lawmakers and the House leadership for entrusting his committee with processing the tax bills and presenting them for consideration.
He commended President Tinubu for prioritising tax law reforms, noting that some existing tax laws date back to 1959.
“We cannot continue using outdated tax laws that no longer meet our business, survival, and revenue needs,” he stressed.
On his part, the Deputy Committee Chairman, Hon Saidu Abdullahi (APC-Niger), noted that no bill in the 10th Assembly had generated as much debate as the tax reform bills.
He praised Speaker Tajudeen Abbas for fostering consensus among stakeholders, ensuring broad-based input into the legislative process.
Hon Abdullahi highlighted that representatives from all geopolitical zones and regional thought leaders were involved, easing public concerns.
“The committee’s recommendations reflect the contributions of various stakeholders.
“These were never seen as perfect documents. The Executive made proposals, and the public hearing allowed Nigerians to refine them. Lawmakers have now endorsed the final version,” he added.
In the same vein, Hon Ikeagwuonu Ugochinyere (PDP-Imo) described the process as transparent, with consultants and the Executive making adjustments to reflect public interest.
“In spite of being in the opposition, we are proud of this historic moment. It will expand the tax net and increase government revenue.
“This reform will enhance tax collection efficiency while protecting small businesses. That is why we worked together to ensure its passage,” Hon Ugochinyere said.
In the views of Hon Benson Babajimi (APC-Lagos), all stakeholder concerns, including inheritance tax, derivation, and VAT, were carefully considered.
“This is a great day for Nigeria. The House has approved the necessary reforms, and we now await Senate concurrence,” he said.
The ragging battle for the soul of Edo State between the All Progressives Congress (APC) and the Peoples Democratic Party (PDP) has taken a dramatic turn, with the APC-run government accusing the PDP leadership of being the brain behind the menace of kidnapping ravaging the state.
The Chief Press Secretary to the Governor, Fred Itua, in a statement in Benin City on Tuesday averred that intelligence reports indicate the involvement of PDP leaders in recent kidnappings and violent crimes across the state.
He posited that the opposition PDP was sponsoring insecurity in Edo State as part of calculated efforts to undermine the administration of Governor Monday Okpebholo.
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Itua described the PDP’s outcry over insecurity as “crocodile tears,” accusing them of deliberately orchestrating chaos while pretending to be concerned about public safety.
According to Itua, “The sudden concern expressed by PDP leaders is nothing but a smokescreen to divert attention from their own complicity. These are the same individuals who, during the 2024 governorship election, armed non-state actors with dangerous weapons, many of which were never recovered. Today, those weapons are in the hands of criminals terrorizing innocent Edo citizens.”
He added that the PDP’s strategy was to create an atmosphere of fear, spread misinformation, and discredit the current administration.
“Their goal is clear — destabilize the state, weaken public confidence in Governor Okpebholo’s leadership, and push a false narrative of failure. But Edo people can see through these antics,” Itua stated.
He revealed that the state government has called on security agencies, including the Nigeria Police, to launch a thorough investigation into the alleged involvement of PDP leaders in the rising wave of kidnappings and armed violence.
“No individual or political group should be allowed to hold the state hostage for political gain. Those found culpable must face the full wrath of the law,” he added.
Gov Okpebholo’s administration reaffirmed its commitment to tackling insecurity and ensuring the protection of lives and property. The government urged Edo residents to remain vigilant and not fall for what it described as the PDP’s “deceptive tactics.”
Itua pointed out that “Insecurity thrives when its perpetrators believe they are untouchable. It is time for security agencies to prove them wrong.”
Governor Lucky Aiyedatiwa remains the duly elected leader of Ondo State after an appeal challenging his victory in the November 16, 2024, gubernatorial election was dismissed.
The case, brought forward by Peoples Democratic Party (PDP) candidate Mr. Agboola Ajayi, was thrown out by the Supreme Court on Tuesday.
Ajayi had sought to disqualify Aiyedatiwa over allegations that his running mate, Dr. Olayide Owolabi, submitted inconsistent documents to the Independent National Electoral Commission (INEC).
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He argued that some certificates bore “Jackson” as the deputy governor’s middle name, while others had “Owolabi,” with no official record of a name change.
However, the apex court ruled that a documented name change does not amount to electoral fraud.
It found evidence confirming that Owolabi had used “Jackson” during his secondary school years before formally changing it.
Additionally, the court ruled that Ajayi lacked the locus standi to challenge the election, as he had filed the case after the legal time limit.
The suit, which stemmed from nomination forms submitted on May 20, 2024, was only taken to the Federal High Court on June 7, exceeding the 14-day window allowed by law.
As a result, the Supreme Court upheld the decisions of the Court of Appeal and the Federal High Court, dismissing the case and imposing a ₦2 million cost on Ajayi, payable to each of the four respondents.
Reacting to the judgment, the Ondo State Attorney-General and Commissioner for Justice, Dr. Olukayode Ajulo, SAN, described it as a victory for democracy and due process.
“As I have stated previously, the courtroom is a battleground for legal reasoning, and every advocate who argues a case contributes to strengthening our democracy,” Ajulo said.
He emphasized that the ruling had effectively put an end to the prolonged legal battle over Aiyedatiwa’s election, reinforcing the legitimacy of the APC-led government in Ondo State.
“The decision solidifies the legitimacy of the APC-led government in Ondo State, closing the chapter on the prolonged political legal tussle,” he added.
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