A coalition of the Nigeria Labour Congress, the Trade Union Congress and 80 other organisations, Alliance for Surviving COVID-19 and Beyond, has asked the Federal Government to publish terms and conditions of all the loans it had taken so far.
ASCAB, in a joint statement by its Chairman, Mr Femi Falana, (SAN) and co-Chairmen, NLC President, Ayuba Wabba and his TUC counterpart, Quadri Olaleye, also threatened legal action against the government if it failed to heed its demand.
Minister of Transportation, Rotimi Amaechi, during his appearance before the House of Representatives Committee on Treaties, Protocols and Agreements on Tuesday last week, had asked the lawmakers to stop its probe of the loans obtained from China to finance rail projects in Nigeria.
Amaechi had warned that the probe would send a wrong signal to China, which could stop the loan, thereby thwarting the rail projects.
But the coalition in its statement titled, ‘‘ASCAB demands full disclosure of all loans obtained by Nigeria,’ warned that it was ready to drag the government to court if it failed to make the disclosures.
ASCAB also called on the National Assembly to reveal the terms and conditions of all external loans.
The coalition warned that if the National Assembly failed, the Debt Management Office should publish the terms and conditions of all external loans, or face court action.
It expressed regrets that Nigeria’s debt profile, which was N12.118tn as of May 2015, had leaped to N27.401tn in 2019.
ASCAB stated that the figure represented more than 100 per cent debt increase, adding that by 2020, the nation had seen an astrological surge in the country’s external debts.
The coalition noted that recent revelations at the National Assembly had confirmed the fact that the loans were taken without proper public scrutiny.
It also noted that a committee of the House of Representatives was feigning ignorance concerning the terms and conditions attached to a particular loan agreement.
ASCAB said the huge debt being incurred by the country was capable of having negative effects on the prospects of economic liberation and political freedom of the people.
It said within one year, the National Assembly had approved a total of $28bn loans for the Federal Government without commensurate improvement in the quality of lives of many Nigerians.
The coalition’s statement partly read, “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 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 appeared desperate to deceive Nigerians by covering up its tracks regarding the clause in the Chinese loans.
“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 (DMO Act) which states that no external loan shall be approved or obtained by the minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution.”
The coalition stated that information from the Debt Management Office indicated that the total value of loans taken by Nigeria from China as of March 31, 2020, was $3.121bn.
It noted that it was an indication that the Chinese loan was some 3.94 per cent of Nigeria’s total public debt of $79.303 as of March 31, 2020 while external sources of funds, loans from China accounted for 11.28 per cent 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 a moratorium of seven years,” ASCAB said.
The coalition said it was important to ask whether Nigeria really needed the jumbo loans when sources of boosting public funds had either yet to be fully explored or completely ignored
It added, “The country’s level of poverty continues to increase with the skyrocketing loans obtained by the Federal Government.
“Poverty, extreme hunger, frivolous lifestyles of public office holders continue to fuel violence and public disorder across the country.
“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.”