Date Published: 05/18/09

Group urges NASS to stop $10M loan

THE Niger Delta Budget Monitoring Group (NDEBUMOG), a civil society organisation, is currently praying the National Assembly to abort the $10million loan being sought  by the Presidency for the Joint Development Zone (JDZ).

The Presidency recently informed and requested the National Assembly for approval of the amount as repayable loan to the zone.

Co-ordinator of the group, Mr. George-Hill Anthony in a statement in Port Harcourt, the Rivers State capital, yesterday, said ''this is very saddening and worrisome, going by the fact that, Nigeria is yet to present report(s)concerning the Production Sharing Contracts (PSC) between our country and its stakeholder partner in the JDZ, which is being operated by both partners to the National Assembly. We know Nigeria's National Assembly is not pro-poor nor (pro)active, hence asking for such may not readily come into their mind''.

The Presidency however, argues that the loan is repayable and can be recovered. On its part, NDEBUMOG is contending that going by the PSC extractive agreement between partner countries in the Gulf of Guinea, ''it is a brainwave, a way of stimulating the pro-rich National Assembly in Nigeria to grant the approval''.

Continuing, they questioned, ''how can the legislature grant approval based on distorted facts of the so-called PSC in the JDZ? Has members of the National Assembly ever set their eyes on such agreement nor situate their (oversignt) thinking if (either) oil extraction from the JDZ is on Cost or Profit Oil to Nigeria? What is the implication for Nigeria if on Cost Oil? And how many years are the recoverable Wells in the PSC for Nigeria?''

NDEBUMOG has been advocating for the establishment of the Joint EITI between the partner countries. According to them, ''we are aware the Nigerian Extractive Industries Transparency Initiative (NEITI) has set a machinery towards this, but until it comes to fruition (with the media and civil society integrated from the partner countries) before we can take the government serious''.

''Giving loans and taking more loans is becoming a trade mark of this government of a wobbling giant, who even, cannot feed its population nor provide social security for the country. Clearly, the Yar'Adua government is moving fast to rejoin the World Bank Club of creditors from one loan ( and grant(s) to the other which the government is already beggarly soliciting from IDAs,yet, same government want to loan another country'', they said.