- SERAP urges Nigerian governors and FCT Minister Wike to disclose details of Chinese loans and external borrowings for transparency and accountability
- The organization warns that mismanagement of loans could violate the Debt Management Office Act, posing financial risks to 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), Abuja, Mr. Nyesom Wike, to disclose comprehensive details of any Chinese loans, liabilities, and other external borrowings. SERAP seeks transparency regarding the loans obtained and guaranteed by the Federal Government, including the terms, conditions, and collateral provisions associated with these loans.
In letters dated August 24, 2024, signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organization expressed concern that the states and the FCT might have mismanaged their debt obligations, particularly concerning external debt and investment obligations guaranteed by the Federal Government.
SERAP emphasized the need for the governors to provide full details of the repayment obligations, interest rates, and any defaults or debt restructurings related to these Chinese loans. The organization also urged them to clarify any investment agreements with Chinese companies and provide a repayment history of any loans obtained from China or other external creditors.
The letter highlighted concerns that failing to manage debt obligations efficiently could violate Section 6 of the Debt Management Office Establishment (Etc.) Act, posing financial risks to Nigeria. SERAP warned that these Chinese loans and other external borrowings might not have been used for their intended purposes, raising questions about the transparency and accountability of the state’s financial management.
The organization is pushing for a detailed account of these financial dealings to ensure that the state’s borrowing practices align with national interests and legal requirements.