LAGOS, Nigeria — The Socio-Economic Rights and Accountability Project, SERAP, has called on the governors of Nigeria’s 36 states and the Minister of the Federal Capital Territory (FCT), Nyesom Wike, to disclose comprehensive details of any Chinese loans and other external borrowings.
The organisation emphasised the need for transparency regarding the terms, conditions, and repayment obligations tied to these financial arrangements, which have been guaranteed by the Federal Government.
In an e-mailed statement to The Trent on Sunday, August 25, 2024, and signed by SERAP’s deputy director, Kolawole Oluwadare, the organisation expressed concerns over the potential mismanagement of external debt obligations by state governments and the FCT.
“We are concerned that your state and the FCT may have failed to efficiently manage your debt obligations, especially your external debt and investment obligations, as guaranteed by the Federal Government,” the statement read.
The advocacy group urged the governors and the FCT minister to disclose the interest rates, repayment schedules, and any incidents of defaults or debt restructuring associated with these loans.
SERAP highlighted the risks that such financial obligations could pose to Nigeria, including the potential confiscation of assets in foreign jurisdictions if terms are not satisfactorily observed.
“There are also significant risks of confiscation of Nigerian assets in foreign jurisdictions by multilateral and bilateral agencies and other creditors in cases of failure by your state and the FCT to satisfactorily observe and fulfill the terms and conditions of the Chinese loans, liabilities, and other external borrowing,” SERAP warned.
The letter also touched on broader concerns about the management of public funds, noting that despite significant external borrowing, many Nigerians continue to face severe economic hardships.
“A recent report by the National Bureau of Statistics (NBS) revealed that over 133 million Nigerians are living in different categories of poverty, the majority of them women and children,” the statement referenced.
SERAP’s request for transparency is rooted in legal provisions within Nigeria’s constitution and other relevant laws.
The organisation cited the Fiscal Responsibility Act and the Debt Management Office Establishment Act, which mandate the disclosure of the terms and conditions of any external loans obtained by the government.
“Publishing details of the Chinese loans, liabilities, investment obligations, and other external borrowing obtained by your state and the FCT which are guaranteed by the Federal Government would allow Nigerians to scrutinize them,” the letter emphasised.
SERAP has given the state governors and the FCT minister a seven-day deadline to respond to their request, failing which the organisation has threatened to take legal action.
“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government and the FCT to comply with our request in the public interest,” the organisation asserted.
The call for disclosure comes at a time when Nigeria’s debt profile continues to rise.
According to the Debt Management Office, the total public debt for Nigeria’s 36 states and the FCT stood at N9.17 trillion as of December 31, 2023, with the country’s overall debt stock increasing by ₦24.33 trillion in the first quarter of 2024 alone.
