Ekiti State Governor, Mr Ayodele Fayose has written to the Chinese
government, seeking the stoppage of the $2 billion loan being sought
by the federal government of Nigeria, saying that “the government of
China should be mindful of the fact that Nigerians, irrespective of
their political and religious affiliations are totally opposed to
increment of the country’s debt burden, which is already being
serviced with 25 per cent of the Federal Government annual budget.”
In the letter dated April 12, 2016, with reference number
EK/GOV/28/10, addressed to President Xi Jinping of China and delivered
by Chief of Staff to the governor, Barrister Dipo Anisulowo in Abuja
on Thursday, through the Chinese Ambassador to Nigeria, Gu Xiaojie,
Governor Fayose said some of the projects for which the loan was being
sought were not captured in the controversial 2016 budget, which has
been sent to the President by the National Assembly for his assent.
Anisulowo, who was accompanied by Deputy Speaker of the State House of
Assembly, Hon Segun Adewumi, Chairman House Committee on Information,
Gboyega Aribisogan, Chairman House Committee on Health, Dr Samuel
Omotosho and Special Assistant to the Governor on Public
Communications and New Media, Lere Olayinka, said Governor Fayose, who
is in China will also deliver a copy of the letter directly to the
The letter read; “I write as one of the major stakeholders in the
project Nigeria, and a governor of one of the federating units making
up Nigeria, to draw your attention to report that the Federal
Government of Nigeria is on the verge of obtaining a $2 billion loan
from the Export-Import Bank of China.
“This $2 billion loan is part of the N1.84 trillion the Federal
Government of Nigeria has proposed to borrow to finance the 2016
budget, which is yet to be signed by the President, Mohammadu Buhari
owing to unending controversies between the Executive and Legislative
arms of government.
“According to reports, Nigeria desires to raise about $5 billion
abroad to cover part of its 2016 budget deficit. This is projected to
hit N3 trillion ($15 billion) due to heavy infrastructure spending at
a time when the slump in global oil prices has slashed the country’s
“While conceding that all nations, especially developing ones need
support to be able to grow because no nation is an island, I am
constrained to inform you that if the future of Nigeria must be
protected, the country does not need any loan at this time.
“The government of China should be mindful of the fact that Nigerians,
irrespective of their political and religious affiliations are totally
opposed to increment of the country’s debt burden, which is already
being serviced with 25 per cent of the Federal Government annual
“It will interest the government of China to know that some of the
projects for which the loan is being sought are not captured in the
controversial 2016 budget, which has been sent to the President by the
National Assembly for his assent. For instance, the Lagos – Calabar
Rail project was not included in the budget proposal the President
presented to the National Assembly and it was not included in the
Appropriation Bill passed by the National Assembly.
“Most importantly, Nigeria is presently servicing debt with about 25 per cent of its annual budget and what will happen to the economy in
2017, when the country will begin to service the additional debt to be
incurred this year is better imagined than experienced.
“The Chinese government must also be aware that some western nations
approached by the Federal Government for loan diplomatically and
“This must have been informed by the suspicion in the present
government’s capacity to salvage the nation’s economy as well as the
sincerity in the fight against corruption. More so that Nigeria’s
Foreign Reserve, which is the only guarantee for foreign loan has
declined to a very uncomfortable level.
“For instance, the UK Telegraph Newspaper reported today that hundreds of millions of pounds of British foreign aid given to Nigeria to help combat Boko Haram terrorists is instead being used to fund a
witch-hunt against opposition politicians.
“Therefore, like the foreign aid that is reportedly being mismanaged,
whatever loan that is granted to the Federal Government of Nigeria by
the Chinese Government may be mismanaged too.
“In my opinion, Nigeria needs the collaboration of the Government of
China in the area of technology transfer, rather than granting loan
that will be mismanaged under the guise of building infrastructure.
“It is also important for the Government of China to note that the
Federal Government of Nigeria claimed to have recovered and still
recovering trillions of Naira allegedly looted from the treasury. For instance, over $200 billion is expected to be recovered from Dubai,
the United Arab Emirate while N3 trillion was said to have been saved
from the Treasury Single Account (TSA).
“The Federal Inland Revenue Service (FIRS) has also said that it will
generate not less than N4.5 trillion this year. What then is the
rationale behind the $2 billion loan from China?
“As a result of the government’s bad economic policies, the middle
class has been eliminated, power supply is at its lowest ebb, petrol
is not available and by the time fresh loans begin to pile up, 95 per
cent of Nigerians will definitely be pauperised.
“Particularly, by the autocratic nature of our president, the Federal
Government is not prepared to listen to wise counsel, hence the
desperation to take unwarranted loans even if the future of Nigeria
and its people will be mortgaged.
“It will also interest Your Excellency that our presidents visit to China will be his 28th trip outside Nigeria since he assumed office 10
months ago and this unnecessary foreign trip is estimated to have
cause the country $50 million.
“I therefore appeal to Your Excellency to assist Nigeria and its
people in the area of technology transfer so as to limit importation
of goods and services, rather than granting the country unnecessary
“In conclusion, I wish to state that this letter and information
became necessary for posterity sake and to put it on record that when
the future of Nigeria and its people was going to be mortgaged through
loan from the People’s Republic of China, I stood up to be counted in
defence of our country.”