Fayose Writes Chinese Government Not To Give Loan To Nigeria

Ekiti State Governor, Mr Ayodele Fayose has
written to the Chinese government, seeking the
stoppage of the $2 billion loan being sought by the
federal government of Nigeria.
He wrote that “the government of China should be mindful of the fact that Nigerians, irrespective of
their political and religious affiliations ations 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.”
In the letter dated April 12, 2016, with reference
number EK/GOV/28/10, addressed to President Xi
Jinping of China and delivered by Chief of Staff to
the governor, Barrister Dipo Anisulowo in Abuja
on Thursday, through the Chinese Ambassador to
Nigeria, Gu Xiaojie, Fayose said some of the
projects for which the loan was being sought were
not captured in the controversial 2016 budget,
which has been sent to the President by the
National Assembly for his assent.
Anisulowo, who was accompanied by Deputy
Speaker of the State House of Assembly, Hon
Segun Adewumi, Chairman House Committee on
Information, Gboyega Aribisogan, Chairman
House Committee on Health, Dr Samuel Omotosho
and Special Assistant to the Governor on Public
Communications and New Media, Lere Olayinka,
said Governor Fayose, who is in China will also
deliver a copy of the letter directly to the Chinese
President.
The letter read 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, Mohammadu 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.
“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 and cleverly 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.