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.’”
A chieftain of the Peoples Democratic Party, Dan Ulasi, has warned that the party stands little chance of defeating President Bola Ahmed Tinubu in the 2027 general elections if Nyesom Wike continues to play a leading role while allegedly supporting the ruling government.
Ulasi, who spoke during an interview on Arise TV on Thursday, expressed deep concern over what he described as a “contradictory situation” within the PDP, stressing that such internal inconsistencies could weaken the party’s credibility and chances at the polls.
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“I don’t see my party as presently constituted challenging Tinubu with Wike as national leader,” Ulasi said, warning that he may be forced to leave the party if the issue is not addressed.
The PDP stalwart argued that Wike cannot effectively serve as a leader in the opposition while maintaining close ties with President Tinubu, describing the situation as “unconstructive” for a party seeking to reclaim power at the national level.
He further questioned what role Wike would play if another candidate emerges as the PDP’s presidential flag-bearer ahead of the 2027 election, asking whether the former Rivers State governor would actively participate in party rallies or align with the ruling party’s activities.
Ulasi warned that the party’s next meeting could be his last if its leadership fails to provide satisfactory explanations, insisting that he cannot continue to be part of a process riddled with contradictions.
In a related development, Ulasi revealed that Peter Obi had visited him several times this year, including a recent meeting following an appearance in Enugu.
He spoke positively about Obi’s vision for Nigeria, noting that the former presidential candidate offers a sense of hope for the country’s future, although he stopped short of declaring any political alignment.
Reflecting on his longstanding ties to the PDP, Ulasi recalled his role during the party’s formation alongside late former Vice-President Alex Ekueme and other founding members.
Despite his deep connection to the party, he maintained that he would rather step aside than remain in a system he considers inconsistent.
He added that if he eventually exits the PDP, he has no plans to join another political party, stating that he would instead operate as a private consultant.
There was tension within the Ogun State chapter of the All Progressives Congress (APC) on Monday after former Governor and Senator representing Ogun East, Otunba Gbenga Daniel, alleged that he was barred from attending a stakeholders’ meeting of the party held in Ijebu Ode.
The meeting, which took place at Adeola Odutola Hall, was reportedly convened to bring together key party stakeholders, including current and former local government chairmen, councillors, and serving as well as former lawmakers from both state and national levels.
However, the senator, in a viral video circulating online, claimed he was denied entry into the venue despite being part of the expected attendees.
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Speaking from his branded campaign bus parked at the venue, Daniel expressed disappointment over the situation, saying he and his team were stopped from accessing the meeting.
He further questioned the legitimacy of any resolutions reached at the gathering, suggesting that the outcome of the meeting should not be considered valid.
As of press time, the Ogun State APC leadership had yet to issue an official response to the allegation.
The lingering leadership crisis within the African Democratic Congress (ADC) is set for a crucial legal test as the Supreme Court of Nigeria prepares to hear an appeal filed by former Senate President, David Mark.
Mark is challenging a legal action brought by a former Deputy National Chairman of the party, Nafiu Bala, over the control and leadership structure of the ADC.
The case, scheduled for hearing on Tuesday, is expected to determine the direction of the party amid deepening internal divisions.
SEE MORE: 2027: Why ADC, Opposition Leaders Stormed INEC in Abuja
Through his lawyer, Realwan Okpanachi, Mark is seeking an order to stay the execution of a Court of Appeal judgment delivered on March 12, pending the final resolution of the matter.
He also urged the apex court to restrain the Independent National Electoral Commission (INEC) from making any alterations to the party’s leadership as currently constituted under his faction.
In addition, Mark is asking the court to suspend further proceedings in a related suit before the Federal High Court in Abuja, presided over by Justice Emeka Nwite.
The dispute dates back to a September 4, 2025 ruling by the Federal High Court following an ex parte application filed by Bala, which has since fueled competing claims to the party’s leadership.
The ADC has, in recent months, been embroiled in a bitter factional crisis, with rival camps asserting legitimacy.
The situation has been worsened by conflicting court orders and administrative uncertainty surrounding who truly leads the party.
Tensions escalated after INEC reportedly removed Mark as the party’s national chairman from its official records, sparking protests by his loyalists.
The demonstration drew prominent political figures, including former Vice President Atiku Abubakar, ex-Osun State Governor Rauf Aregbesola, former Anambra State Governor Peter Obi, and former Rivers State Governor Rotimi Amaechi.
In response, the Bala-led faction staged a counter-protest, insisting on recognition by INEC as the legitimate leadership of the party.
As the battle shifts to the Supreme Court, political observers say the outcome could decisively shape the future of the ADC, particularly as political alignments begin to take form ahead of upcoming elections.
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