The Socio-Economic Rights and Accountability Project, SERAP, has called on Nigeria’s 36 state governors and the Minister of the Federal Capital Territory, Abuja, Nyesom Wike, to disclose details of any Chinese loans, liabilities, and other external borrowing obtained, and guaranteed by the Federal Government of Nigeria.
It urged them to also reveal the terms and conditions for any such borrowing, including the provisions on collateral.
The organisation urged them to provide details of the repayment obligations regarding any Chinese loans, liabilities and other external borrowing obtained by the Federal Government, the interest rates on the loans, and any defaults, debt restructurings, and debt exposure to China and other creditors.
It also urged them to clarify any investment agreements with Chinese companies and the repayment histories of any loans, liabilities and facilities obtained from China and other external creditors and guaranteed by the Federal Government.
SERAP disclosed this in a letter dated August 24, 2024 and signed by SERAP deputy director Kolawole Oluwadare.
The organisation’s statement partly read, “There are also significant risks of confiscation of Nigerian assets in foreign jurisdictions by multilateral and bilateral agencies and other creditors in cases of failure by your state and the FCT to satisfactorily observe and fulfil the terms and conditions of the Chinese loans, liabilities and other external borrowing which are guaranteed by the Federal Government.
“The apparent inadequacy of safeguards and accountability mechanisms for these Chinese loans, liabilities and other external borrowing may also expose Nigeria’s assets in foreign jurisdictions to confiscation.
“Your state and the FCT have a shared obligation to ensure that the spending and repayment plans of Chinese loans, liabilities, facilities and other external borrowing are consistent with the provisions of national and international standards, and to prevent or mitigate the risks of confiscation of Nigerian assets abroad.
“We would be grateful if the recommended measures were taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government and the FCT to comply with our request in the public interest.
“We urge you to disclose the spending details of these Chinese loans, investment obligations and external borrowing, including details of and locations of projects as well as the implementation status and completion reports, if any, on the projects.”