SERAP Requests Full Disclosure On Chinese Loans From State Governors And FCT Minister

SERAP Requests Full Disclosure On Chinese Loans From State Governors And FCT Minister....KINDLY READ THE FULL STORY HERE▶

SERAP has urged governors and the Federal Capital Territory (FCT) Minister to disclose details of Chinese loans, emphasizing the importance of transparency for accountability and to mitigate potential financial risks that could affect millions of Nigerians……CONTINUE READING 

In letters dated August 24, 2024, and signed by SERAP Deputy Director Kolawole Oluwadare, the organization expressed concerns about the management of external debts by states and the FCT. SERAP suggested that there might be inefficiencies in managing these debts, which could lead to financial risks and exposure due to the Chinese loans and other external borrowings.

SERAP highlighted that these loans might not have been used as intended, raising fears of potential defaults and the risk of confiscation of Nigerian assets abroad by creditors. The organization warned that inadequate safeguards and accountability mechanisms could further expose Nigeria’s assets to such risks.

The letters stated: “SERAP is worried about the significant risk of defaults and the potential for asset confiscation if the terms and conditions of these loans are not met. We urge you to disclose the spending details, including project locations and completion reports.”

SERAP noted that despite substantial external borrowing, basic services such as regular electricity remain inadequate, and millions of Nigerians continue to face severe poverty. The organization pointed out that Nigeria’s public debt has risen sharply, with external debt alone totaling ₦168.83 billion for Ogun State as of December 31, 2023, and ₦9.17 trillion for all states and the FCT.

Additionally, SERAP emphasized that international loans approved by the World Bank, such as the $750 million credit line and the $1.5 billion loan for social protection and COVID-19 response, highlight the need for proper management and transparency in external borrowing.

The organization called for the publication of detailed information about the Chinese loans, liabilities, and other external borrowings, referencing legal obligations under Nigeria’s Constitution, the Fiscal Responsibility Act, and the Debt Management Office Establishment Act.

SERAP requested that the recommended disclosures be made within seven days of receipt or publication of the letter, warning that failure to comply may result in legal action to ensure public interest is protected.

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