Can a state governor stop a foreign country from granting a loan to his home country?
This is the latest drama playing out in Ekiti State where Governor Ayo Fayose has written to the Chinese Government seeking the stoppage of the $2 billion loan being sought by the Federal Government.
President Buhari’s visit to China this week was to discuss the development of the country’s infrastructure, including a $2 billion loan for railway projects.
But Fayose said in his letter to President Xi Jinping of China: “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 being serviced with 25 per cent of the Federal Government annual budget.”
In the letter dated April 12, with reference number: EK/GOV/28/10, addressed to President Jinping and delivered by Fayose’s Chief of Staff, Dipo Anisulowo, in Abuja yesterday, through the Chinese Ambassador to Nigeria, Gu Xiaojie, the governor alleged that some of the projects for which the loan was being sought were not captured in the controversial 2016 budget, which has been sent to President Buhari by the National Assembly for his assent.
Anisulowo, who was accompanied by House of Assembly members, said Fayose, who is in China, will also deliver a copy of the letter directly to the Chinese President.
The letter reads: “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 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 has proposed to borrow to finance the 2016 budget, which is yet to be signed by President Muhammadu 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 export revenues.
“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 budget.
“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 Na
