The rift
between the Ekiti State Governor, Ayodele Fayose, and President Muhammadu
Buhari-led federal government took another dimension as the governor wrote a
scathing letter to Chinese authorities urging them to halt a $2 billion trade
loan to Nigeria.
In the letter dated April 12, a copy of which was made available
to PREMIUM TIMES on Thursday, Mr. Fayose said the Chinese authorities should
know that all Nigerians, notwithstanding their political and religious
affiliations, are against any applications for new foreign loans. He said
servicing current debt burden already gulps over 25 per cent of the country’s
annual budget.
The Chief of Staff to the governor, Dipo Anisulowo, delivered
the letter. which has the reference number EK/GOV/28/10, to the Chinese
government through the country’s Ambassador to Nigeria, Gu Xiaojie, in Abuja
Thursday.
An accompanying statement hinted that Mr. Fayose will personally
deliver a copy of the letter to Chinese President Xi Jinping as part of his
ongoing official trip to that country.
Mr. Fayose accused Mr. Buhari of attempting to obtain the loan
under false pretences because some of the projects for which federal government
sought the loan were not captured in the 2016 appropriation bill.
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, 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.
“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.
“Therefore, like the foreign aid that is reportedly being
mismanaged, whatever loan that is granted to the Federal Government of Nigeria
by the Chinese Government may be mismanaged too.”
Mr. Fayose told the Chinese government that Mr. Buhari had
claimed that Nigeria has enough money accrued from the implementation of the
Treasury Single Account and increased tax revenues.
“It is also important for the Government of China to note that
the Federal Government of Nigeria claimed to have recovered and still
recovering trillions of Naira allegedly looted from the treasury. For instance,
over $200 billion is expected to be recovered from Dubai, the United Arab
Emirate while N3 trillion was said to have been saved from the Treasury Single
Account (TSA).
“The Federal Inland Revenue Service (FIRS) has also said that it
will generate not less than N4.5 trillion this year. What then is the rationale
behind the $2 billion loan from China?”
But Chris Ngwodo, a foreign policy analyst, said Mr. Fayose is
only making a mincemeat of himself on the international stage because he has no
legal or strategic standing to write such a letter to either Chinese
authorities or any foreign government with diplomatic ties to Nigeria.
“The loan is part of our economic policy which is also tied to
our foreign policy. And you know foreign policy falls completely under the
purview of the federal government and President Buhari is current the custodian
of that authority, so I don’t know what informed Mr. Fayose’s letter,” Mr.
Ngwodo said.
Mr. Ngwodo admonished Mr. Fayose to focus on addressing
fundamental issues that affect his state residents rather than attempting to
usurp the undisputed power of the federal government.
“Right now, Ekiti State is functionally bankrupt with workers
having to endure several months of unpaid salaries,” he said. “I think it will
be in his best interest to focus on that rather than embarrassing himself by
attempting to usurp the power of the federal government, which is
incontrovertible.”
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