{"id":48520,"date":"2016-04-14T10:59:43","date_gmt":"2016-04-14T09:59:43","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=48520"},"modified":"2016-04-14T16:00:42","modified_gmt":"2016-04-14T15:00:42","slug":"2bn-loan-fayose-writes-chinese-govt-seeks-loans-stoppage","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/exclusive\/2bn-loan-fayose-writes-chinese-govt-seeks-loans-stoppage\/","title":{"rendered":"$2bn Loan: Fayose writes Chinese Govt, seeks loan\u2019s stoppage"},"content":{"rendered":"
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Ekiti State Governor, Mr Ayodele Fayose has written to the Chinese
\ngovernment, seeking the stoppage of the $2 billion loan being sought
\nby the federal government of Nigeria, saying that \u201cthe government of
\nChina should be mindful of the fact that Nigerians, irrespective of
\ntheir political and religious affiliations are totally opposed to
\nincrement of the country\u2019s debt burden, which is already being
\nserviced with 25 per cent of the Federal Government annual budget.\u201dIn the letter dated April 12, 2016, with reference number
\nEK\/GOV\/28\/10, addressed to President Xi Jinping of China and delivered
\nby Chief of Staff to the governor, Barrister Dipo Anisulowo in Abuja
\non Thursday, through the Chinese Ambassador to Nigeria, Gu Xiaojie,
\nGovernor Fayose said some of the projects for which the loan was being
\nsought were not captured in the controversial 2016 budget, which has
\nbeen sent to the President by the National Assembly for his assent.<\/p>\n

Anisulowo, who was accompanied by Deputy Speaker of the State House of
\nAssembly, Hon Segun Adewumi, Chairman House Committee on Information,
\nGboyega Aribisogan, Chairman House Committee on Health, Dr Samuel
\nOmotosho and Special Assistant to the Governor on Public
\nCommunications and New Media, Lere Olayinka, said Governor Fayose, who
\nis in China will also deliver a copy of the letter directly to the
\nChinese President.<\/p>\n

The letter read; \u201cI write as one of the major stakeholders in the
\nproject Nigeria, and a governor of one of the federating units making
\nup Nigeria, to draw your attention to report that the Federal
\nGovernment of Nigeria is on the verge of obtaining a $2 billion loan
\nfrom the Export-Import Bank of China.<\/p>\n

\u201cThis $2 billion loan is part of the N1.84 trillion the Federal
\nGovernment of Nigeria has proposed to borrow to finance the 2016
\nbudget, which is yet to be signed by the President, Mohammadu Buhari
\nowing to unending controversies between the Executive and Legislative
\narms of government.<\/p>\n

\u201cAccording to reports, Nigeria desires to raise about $5 billion
\nabroad to cover part of its 2016 budget deficit. This is projected to
\nhit N3 trillion ($15 billion) due to heavy infrastructure spending at
\na time when the slump in global oil prices has slashed the country\u2019s
\nexport revenues.<\/p>\n

\u201cWhile conceding that all nations, especially developing ones need
\nsupport to be able to grow because no nation is an island, I am
\nconstrained to inform you that if the future of Nigeria must be
\nprotected, the country does not need any loan at this time.<\/p>\n

\u201cThe government of China should be mindful of the fact that Nigerians,
\nirrespective of their political and religious affiliations are totally
\nopposed to increment of the country\u2019s debt burden, which is already
\nbeing serviced with 25 per cent of the Federal Government annual
\nbudget.<\/p>\n

\u201cIt will interest the government of China to know that some of the
\nprojects for which the loan is being sought are not captured in the
\ncontroversial 2016 budget, which has been sent to the President by the
\nNational Assembly for his assent. For instance, the Lagos \u2013 Calabar
\nRail project was not included in the budget proposal the President
\npresented to the National Assembly and it was not included in the
\nAppropriation Bill passed by the National Assembly.<\/p>\n

\u201cMost importantly, Nigeria is presently servicing debt with about 25
\nper cent of its annual budget and what will happen to the economy in
\n2017, when the country will begin to service the additional debt to be
\nincurred this year is better imagined than experienced.<\/p>\n

\u201cThe Chinese government must also be aware that some western nations
\napproached by the Federal Government for loan diplomatically and
\ncleverly declined.<\/p>\n

\u201cThis must have been informed by the suspicion in the present
\ngovernment\u2019s capacity to salvage the nation\u2019s economy as well as the
\nsincerity in the fight against corruption. More so that Nigeria\u2019s
\nForeign Reserve, which is the only guarantee for foreign loan has
\ndeclined to a very uncomfortable level.<\/p>\n

\u201cFor instance, the UK Telegraph Newspaper reported today that hundreds
\nof millions of pounds of British foreign aid given to Nigeria to help
\ncombat Boko Haram terrorists is instead\u00a0 being used to fund a
\nwitch-hunt against opposition politicians.<\/p>\n

\u201cTherefore, like the foreign aid that is reportedly being mismanaged,
\nwhatever loan that is granted to the Federal Government of Nigeria by
\nthe Chinese Government may be mismanaged too.<\/p>\n

\u201cIn my opinion, Nigeria needs the collaboration of the Government of
\nChina in the area of technology transfer, rather than granting loan
\nthat will be mismanaged under the guise of building infrastructure.<\/p>\n

\u201cIt is also important for the Government of China to note that the
\nFederal Government of Nigeria claimed to have recovered and still
\nrecovering trillions of Naira allegedly looted from the treasury. For
\ninstance, over $200 billion is expected to be recovered from Dubai,
\nthe United Arab Emirate while N3 trillion was said to have been saved
\nfrom the Treasury Single Account (TSA).<\/p>\n

\u201cThe Federal Inland Revenue Service (FIRS) has also said that it will
\ngenerate not less than N4.5 trillion this year. What then is the
\nrationale behind the $2 billion loan from China?<\/p>\n

\u201cAs a result of the government\u2019s bad economic policies, the middle
\nclass has been eliminated, power supply is at its lowest ebb, petrol
\nis not available and by the time fresh loans begin to pile up, 95 per
\ncent of Nigerians will definitely be pauperised.<\/p>\n

\u201cParticularly, by the autocratic nature of our president, the Federal
\nGovernment is not prepared to listen to wise counsel, hence the
\ndesperation to take unwarranted loans even if the future of Nigeria
\nand its people will be mortgaged.<\/p>\n

\u201cIt will also interest Your Excellency that our presidents visit to
\nchina will be his 28th trip outside Nigeria since he assumed office 10
\nmonths ago and this unnecessary foreign trip is estimated to have
\ncause the country $50 million.<\/p>\n

\u201cI therefore appeal to Your Excellency to assist Nigeria and its
\npeople in the area of technology transfer so as to limit importation
\nof goods and services, rather than granting the country unnecessary
\nloan.<\/p>\n

\u201cIn conclusion, I wish to state\u00a0 that this letter and information
\nbecame necessary for posterity sake and to put it on record that when
\nthe future of Nigeria and its people was going to be mortgaged through
\nloan from the People’s Republic of China, I stood up to be counted in
\ndefence of our country.\u201d<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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