The Socio-Economic Rights and Accountability Project (SERAP) has called on Nigeria’s 36 state governors and the Federal Capital Territory (FCT) Minister, Nyesom Wike, to disclose comprehensive details regarding any Chinese loans, liabilities, and other forms of external borrowing that have been obtained and guaranteed by the Federal Government.
SERAP is seeking information about the terms and conditions of these borrowings, including any collateral involved.
In a recent communication dated August 24, 2024, and signed by SERAP Deputy Director Kolawole Oluwadare, the organization requested a full account of the repayment obligations for these Chinese loans, including interest rates, any instances of default, debt restructurings, and the overall debt exposure to China and other creditors. They also asked for clarification on investment agreements with Chinese firms and the repayment history of loans and liabilities.
SERAP expressed concern that the states and the FCT might not be managing their debt obligations effectively, particularly regarding external debts and investments guaranteed by the Federal Government. They warned that such mismanagement could lead to significant financial risks, including potential asset confiscation by foreign agencies and creditors.
The organization emphasized the importance of adhering to national and international standards to prevent the misuse of funds and mitigate risks associated with these loans. They urged that the requested information be provided within seven days of receipt or publication of the letter. Failure to respond could prompt SERAP to pursue legal actions to enforce compliance.
SERAP highlighted that despite numerous external loans and investments, many Nigerians, particularly in the states and FCT, continue to lack access to basic services like electricity and renewable energy. They pointed out that over 133 million Nigerians live in poverty, with a significant proportion being women and children.
The letter also referenced Nigeria’s growing public debt, noting a substantial increase in the total debt stock from December 2023 to March 2024. The organization stressed the need for transparency to ensure that Chinese loans and other external borrowings are not mismanaged or used for purposes other than intended.
According to Nigerian law, the disclosure of borrowing details is mandated under various legal frameworks, including the Nigerian Constitution and the Fiscal Responsibility Act. SERAP argues that publishing this information would enhance public scrutiny and accountability, aligning with legal obligations and international standards.
