The Socio-Economic Rights and Accountability Project (SERAP) has called on the 36 state governors and the FCT Minister, Nyesom Wike, to publicly reveal details of any Chinese loans, liabilities, and other external borrowings acquired and guaranteed by the Federal Government, including the terms and conditions of such loans, especially the provisions regarding collateral.
This request was made in a statement issued on Sunday by SERAP’s deputy director, Kolawole Oluwadare.
Oluwadare urged the officials to provide comprehensive details of the repayment obligations associated with any Chinese loans and other external debts guaranteed by the Federal Government, including interest rates, any instances of default, debt restructuring, and the overall exposure to China and other creditors.
The statement emphasized the need for the regional governments to clarify any investment agreements with Chinese companies, as well as the repayment history of loans, liabilities, and facilities obtained from China and other external sources guaranteed by the Federal Government.
SERAP expressed concern that these states and the FCT might not have managed their debt obligations effectively, particularly their external debt and investment responsibilities guaranteed by the Federal Government.
The group warned that failure to meet these obligations violates Section 6 of the Debt Management Office Establishment Act and poses financial risks to Nigeria.
There is also concern that the Chinese loans and other external borrowings may not have been used for their intended purposes, as outlined by the terms and conditions guaranteed by the Federal Government.
SERAP fears that there is a significant risk of default on these loans by the states and the FCT, which could lead to the confiscation of Nigerian assets in foreign jurisdictions by multilateral and bilateral agencies and other creditors if the terms and conditions of the loans are not met.
The group further warned that the apparent lack of safeguards and accountability mechanisms for these loans could expose Nigeria’s assets abroad to confiscation.
SERAP stressed that the states and the FCT have a shared responsibility to ensure that the spending and repayment plans for these Chinese loans and other external debts align with national and international standards to prevent or mitigate the risk of asset confiscation abroad.
The organization requested that these measures be taken within seven days of receiving or publishing the letter. Should there be no response, SERAP will consider taking legal action to compel the states and the FCT to comply with the request in the public interest.
Despite numerous external loans, liabilities, and investments obtained by the states and the FCT over many years, millions of Nigerians in these regions still lack access to regular electricity and renewable energy solutions.
A recent report by the National Bureau of Statistics (NBS) revealed that over 133 million Nigerians are living in various categories of poverty, with the majority being women and children.
SERAP is particularly concerned that many of the country’s 36 states and the FCT are allegedly mismanaging public funds, which may include Chinese loans and other external borrowings guaranteed by the Federal Government.
The group urged the disclosure of detailed spending on these Chinese loans, including the specifics and locations of projects, along with any available implementation status and completion reports.
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