Alliance for Surviving COVID-19
and Beyond (ASCAB), a coalition of over 70 labour and civil society
organisations (CSOs), has asked the federal government to make full disclosure
of all loans it obtained.
The coalition also asked the
national assembly to reveal the terms and conditions of all external loans.
In a statement on Sunday, the
coalition said it would challenge the authorities in court if the disclosures
are not made.
The statement was signed by Femi
Falana, its chairman, Ayuba Wabba, president of the Nigeria Labour Congress
(NLC), and Quadri Olaleye, president of Trade Union Congress (TUC).
ASCAB said the huge debt being
incurred by the country has the potential of stifling the prospect of economic
liberation and political freedom of the people.
It lamented that Nigerian debt
profile “which was N12.118 trillion as at May 2015 has leapt to N27.401
trillion in 2019, representing more than 100 percent debt increase”.
“The country’s level of poverty
continues to increase with the skyrocketing loans obtained by the federal
government. Poverty, extreme hunger, frivolous lifestyle of public office
holders continue to fuel violence and public disorder across the country,” it
said.
“Why the government has responded
effectively to the needs of public officials including members of the national
assembly, the economic and social needs of the people remain a mirage.”
ASCAB said recent revelations at
the national assembly has confirmed that the loans were taken without proper
public scrutiny.
The group alleged that within a
year, the national assembly had approved a total of $28 billion for President
Muhammadu Buhari with no commensurate improvement in the quality of lives of many
Nigerians.
“Millions of Nigerians continue
to face harsh economic difficulties, lacking access to basic needs, yet the
debt profile of the country continues to increase,” it said.
“It is even more grievous that
the government continues to take loans on behalf of the people without their
consent neither their keen understanding of the terms.”
ASCAB said the national assembly
appears desperate to pull the wool over the face of Nigerians by covering up
its tracks regarding the clause in the Chinese loan.
“The opaque nature of the loans
is against the principles of the Nigerian constitution,” ASCAB said, citing
section 21(1) of the debt management office establishment (ETC) act, 2003,” it
said.
“Instead of grandstanding over
the matter, the members of the National Assembly ought to apologise to the
Nigerian people and proceed to scrutinise the terms and conditions of all other
external loans.
“The loans taken by Nigeria from
China raised public outcry last week when a clause that was alleged to have
compromised Nigeria’s sovereignty was discovered.
“According to the Debt Management
Office, the total value of loans taken by Nigeria from China as at March 31,
2020, was $3.121 billion, an indication that the Chinese loan is some 3.94% of
Nigeria’s total public debt of $79.303 as at March 31, 2020, while external
sources of funds, loans from China accounted for 11.28% of the external debt
profile of $27.67 at the same date.
“The loans were obtained with
interest rates of 2.5% per annum, to be paid in 20 years with moratorium of
seven years.”
The coalition said it is
important to ask whether Nigeria really needs “the jumbo loans” when sources of
boosting public funds are either yet to be fully explored or completely
ignored.
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