The Socio-Economic Rights and Accountability Project has called on the 36 state governors and the Minister of the Federal Capital Territory Nyesom Wike, to disclose detailed information regarding any Chinese loans, liabilities, and external borrowings that were obtained and guaranteed by the Federal Government.
In a statement released on Sunday by Kolawole Oluwadare, SERAP’s Deputy Director, the organisation urged the governors to reveal the specifics of any debt restructurings, as well as the terms and conditions attached to these loans, including any provisions regarding collateral.
“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 statement read.
“The failure to uphold your obligations is contrary to Section 6 of the Debt Management Office Establishment Act and creates financial risks and other exposure to Nigeria with respect to these Chinese loans, liabilities, and other external borrowing.”
SERAP further requested clarification from the governors on any investment agreements with Chinese companies, as well as the repayment histories of loans, liabilities, and facilities acquired from China and other external creditors.
“There is a significant risk of defaults on these Chinese loans, liabilities, and other external borrowing by your state and the FCT, which are guaranteed by the Federal Government,” SERAP noted.
“This also raises the possibility of Nigerian assets being confiscated in foreign jurisdictions by multilateral and bilateral agencies and other creditors if these obligations are not met.”
The organisation warned that the lack of transparency and accountability surrounding these Chinese loans and other external borrowings could jeopardise Nigeria’s assets abroad.
SERAP issued a seven-day ultimatum for the governors to provide detailed accounts of the spending related to these loans and external borrowings, threatening legal action if the demand is not met.
“We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter,” SERAP stated.
“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 substantial external borrowing, SERAP expressed concern that millions of Nigerians still lack access to reliable electricity and renewable energy solutions.
The organisation also accused many states and the FCT of mismanaging public funds, including Chinese loans guaranteed by the Federal Government.
“SERAP is seriously concerned that many of the country’s 36 states and the FCT are allegedly mismanaging public funds, which may include Chinese loans, liabilities, and other external borrowing obtained from bilateral and multilateral institutions and agencies,” the statement concluded.
