Ekiti State Governor, Mr Ayodele Fayose, has written to the Chinese

government, asking it not to grant the $2 billion loan being sought

by the Nigerian government.

He said“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.”

This was the kernel of a letter dated April 12, 2016, with reference number

EK/GOV/28/10, addressed to President Xi Jinping of China and delivered

by Chief of Staff to the Governor, Barrister Dipo Anisulowo in Abuja

on Thursday, through the Chinese Ambassador to Nigeria, Gu Xiaojie,

Governor Fayose, in a statement made available to the media said some of the projects for which the loan was being sought were not captured in the controversial 2016 budget, which has been sent to the President by the National Assembly for his assent.

Anisulowo said Governor Fayose, who is in China will also deliver a copy of the letter directly to the

Chinese President. Fayose has remained a vocal critic of President Buhari right from the electioneering days.

The letter read: “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, Mohammadu 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.

“This must have been informed by the suspicion in the present

government’s capacity to salvage the nation’s economy as well as the

sincerity in the fight against corruption. More so that Nigeria’s

Foreign Reserve, which is the only guarantee for foreign loan has

declined to a very uncomfortable level.

“For instance, the UK Telegraph Newspaper reported today that hundreds

of millions of pounds of British foreign aid given to Nigeria to help

combat Boko Haram terrorists is instead  being used to fund a

witch-hunt against opposition politicians.

“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.

“In my opinion, Nigeria needs the collaboration of the Government of

China in the area of technology transfer, rather than granting loan

that will be mismanaged under the guise of building infrastructure.

“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?

“As a result of the government’s bad economic policies, the middle

class has been eliminated, power supply is at its lowest ebb, petrol

is not available and by the time fresh loans begin to pile up, 95 per

cent of Nigerians will definitely be pauperised.

“Particularly, by the autocratic nature of our president, the Federal

Government is not prepared to listen to wise counsel, hence the

desperation to take unwarranted loans even if the future of Nigeria

and its people will be mortgaged.

“It will also interest Your Excellency that our presidents visit to

china will be his 28th trip outside Nigeria since he assumed office 10

months ago and this unnecessary foreign trip is estimated to have

cause the country $50 million.

“I therefore appeal to Your Excellency to assist Nigeria and its

people in the area of technology transfer so as to limit importation

of goods and services, rather than granting the country unnecessary

loan.

“In conclusion, I wish to state  that this letter and information

became necessary for posterity sake and to put it on record that when

the future of Nigeria and its people was going to be mortgaged through

loan from the People’s Republic of China, I stood up to be counted in

defence of our country.”