By Tosin Olatokunbo
A civil society body, the Alliance for Surviving COVID-19 and Beyond, ASCAB has condemned the federal government for worsening the nation’s debt profile.
ASCAB warned the government not to sell Nigerians into slavery to creditors.
The President Muhammadu Buhari’s administration has increased the national debt to over N27 trillion from the N12 trillion in 2015, when it came to power.
In spite of this, ASCAB, a rights group formed by fiery Lagos lawyer, Femi Falana, SAN, and made up of the Nigerian Labour Congress, NLC, Trade Union Congress, TUC and over 70 labour and civil rights organization, CSO said Nigerians have not felt the impacts of the huge loans.
In a statement signed by Falana, Ayuba Wabba, president of the Nigeria Labour Congress, NLC, and Quadri Olaleye, president of Trade Union Congress,TUC, the group said Nigerians are even more concerned that the details of the loans have been shrouded in secrecy.
The National Assembly has recently quizzed the Minister of Transportation, Rotmi Amaechi over a $5. 3 billion loan from China, believed to have touched on the nation’s sovereignty as condition for obtaining the huge loans from the communist country.
ASCAB said such loans“ which was N12.118 trillion as at May 2015 has leapt to N27.401 trillion in 2019, representing more than 100 percent debt increase, ” has not changed the lives of over 200 million Nigerians, except public officials who are living in opulence.
“The country’s level of poverty continues to increase with the skyrocketing loans obtained by the federal government. Poverty, extreme hunger, frivolous lifestyle 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.”
The group also berates the National Assembly for approving $28 billion loan for Buhari without much scrutiny.
ASCAB said “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 said.
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.”
The opaque nature of the loans is against the principles of the Nigerian constitution,” ASCAB said, adding that “Instead of grandstanding over the matter, the members of the National Assembly ought to apologise to the Nigerian people and proceed to scrutinise the terms and conditions of all other external loans.”
The group said the burden of the huge loans from China will be too much for Nigerians yet unborn.
“The loans taken by Nigeria from China raised public outcry last week when a clause that was alleged to have compromised Nigeria’s sovereignty was discovered.
“According to the Debt Management Office, the total value of loans taken by Nigeria from China as at March 31, 2020, was $3.121 billion, an indication that the Chinese loan is some 3.94% of Nigeria’s total public debt of $79.303 as at March 31, 2020, while external sources of funds, loans from China accounted for 11.28% 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 moratorium of seven years,” ASCAB said.
Meanwhile, the Minister of Transportation has maintained that the conditions attached to the $5.3 loan from China are not too stiff.
He said the federal government has started paying the loans, adding that such don’t come free.
