ABUJA, Nigeria – In a landmark ruling on Friday, May 19, 2023, a Federal High Court in Abuja ordered the Nigerian government under President Muhammadu Buhari to account for a $460 million loan from China, originally allocated for the now-failed Abuja Closed-Circuit Television, CCTV, project.
Justice Emeka Nwite, presiding over the Freedom of Information suit FHC/ABJ/CS/1447/2019, put forward by the Socio-Economic Rights and Accountability Project, SERAP, demanded full transparency regarding the money trail related to the project.
In 2019, Finance Minister Zainab Ahmed disclosed Nigeria’s loan service commitment, yet confessed, “We are servicing the loan.
I have no information on the status of the CCTV project.” This disclosure prompted the legal action by SERAP, seeking accountability for the disbursed funds.
Justice Nwite supported SERAP’s assertion that there is a reasonable cause of action against the government, emphasizing, “Accounting for the spending of the $460 million Chinese loan is in the interest of the public.”
He stressed that it would be harmful for the court to refuse SERAP’s application for a judicial review of the government’s actions.
Taking a jab at the Finance Minister, the judge added, “The Minister of Finance is in charge of the finance of the country and cannot by any stretch of imagination be oblivious of the amount of money paid to the contractors for the Abuja CCTV contract.”
Nwite also ordered the government to clarify whether the sum of N1.5 billion Naira for the failed construction of the Code of Conduct Bureau, CCB, headquarters was part of another Chinese loan.
Kolawole Oluwadare, SERAP deputy director, welcomed the judgment, stating, “This is a victory for justice, rule of law, transparency, and accountability.
The onus is now on President Buhari to immediately comply with the court’s orders.”
Amid growing debt concerns, Nigeria’s borrowing from China surged from $1.39 billion to $4.29 billion between June 2015 and December 2022, according to the Debt Management Office, DMO.
Reports suggest that Nigeria risks losing key national assets to China should it default on loan repayments. Recent reports allege a potential default on Chinese loan repayment, potentially resulting in a penalty of N41.31 billion.
This landmark case highlights a critical moment in Nigeria’s ongoing struggle with corruption, transparency, and responsible financial management.
As SERAP states, “Democracy cannot flourish if governments operate in secrecy. The citizens are entitled to know how the commonwealth is being utilized, managed, and administered in a democratic setting.”
