Transforming Uplifting and Reforming Nigeria (TURN) is committed to the socio-economic
well-being of Nigeria. Lately TURN is concerned about the indebtedness of the Federal
Republic of Nigeria to the People’s Republic of China and the reported enslaving terms of
conditions which Nigeria agreed to in order to secure the loans.
Nigeria’s external debt loan stands at $31.98 billion (Debt Management Office, DMO,
September 30, 2020), most of which are owed to well-known international creditor agencies
with which Nigeria has had a long history of dealing, like many other developing countries. In
contrast, the bilateral loans which are owed to individual countries are of concern, and none is
as worrisome as the unprecedented yet increasing sum of money owed to China which now
stands at $3.3 billion or 80.1% of Nigeria’s bilateral debt load of $4.1 billion. What does this
mean to a country like Nigeria? What risk is Nigeria facing with her indebtedness to China?
The IMF has warned Nigeria of her increasing indebtedness to China. TURN’s evaluation of
Chinese “investments” in Nigeria represents a sordid and unsustainable state of affairs that
can in the end only hurt the Nigerian people. All loans from China are claimed to be on
concessional terms according to the DMO. However, details of the loans are shrouded in
secrecy and the demands of Nigeria’s Fiscal Responsibility Act, (FRA) for concessional loans
have not been transparently met. The risks associated with the Chinese loans constitute
clear, present and future danger despite the relatively small proportion of the loans to
Nigeria’s overall debt.
Last year, the House of Representatives Committee on Finance held hearings into the
conditionalities surrounding these loans only to be shut down by powers from above.
Numerous questions and concerns surrounding these loans have remained
unanswered. The patriotic efforts of the Socio-Economic Right and Accountability Project
(SERAP) including legal recourse have not elicited even a polite acknowledgement from the
government. To that end, there is the need for all well-meaning Nigerians to hold the
government to account and demand answers.
For example, we ask that the government should provide answers and not hide the details of
the $460 million loan used to fund the Abuja CCTV, a project that has spectacularly failed?
Why will the Minister of Finance not disclose contractors paid for this project? TURN insists
that it is unacceptable that any project funded by loans that Nigeria will have to pay back be
tainted with fraud and shrouded with a cloak of secrecy.
To the detriment of Nigeria, these loans are used for projects that end up promoting economic
activities in China as the Chinese companies employ mostly Chinese citizens, with money
that will have to be paid back by Nigeria. The loans minimally translate to Nigeria’s benefit as
the control of all related activities are not in the hands of Nigerians. These are examples of
direct foreign “investments” that negatively contribute to the Gross Domestic product as the
valuable economic resources are promptly evacuated from Nigeria by foreigners. These
trends need to be reversed. TURN would like to see concrete actions and a government white
paper issued to address the concerns outlined above.
Going forward, TURN would like to see the Federal Government conduct rigorous and transparent evaluation of all current and active loans. Government needs to involve experts from
the private sector to evaluate the risks and benefits of a loan and take all necessary steps to
ensure that it truly benefits the country. TURN would like to see periodic review, monitoring
and reporting by the Ministry of Finance or Presidency regarding Nigeria-China Loan agreements to ensure continued relevance for intended purpose and meeting regulatory scrutiny.
TURN believes that loans taken by the government should not mortgage the future of the
citizens or that of the unborn generation. TURN is requesting that the terms and conditions of
all loans be made publicly available and for the government to commit to the renegotiation of
the terms and conditions that are inimical to Nigeria’s socio-economic progress. We ask that
the Nigerian government take the necessary precautions to avoid debilitating and harrowing
conditions that the citizens may face with a creditor that might endanger our sovereignty.
Finally, in the spirit of transparency and accountability, TURN demands that the government
reassures Nigerians that none of our national assets will be at risk in the case of a default.
Nigeria is our own and we must collectively protect and nurture her to good health by getting involved in the process of redeeming and restoring to its greatness.
Signed, Ottawa, this 13th day of April, 2021.
Dr. AG Ahmed, MD, LLM, FRCPC
President
Nelson O. Irobi, MASC, M.sc, CSLT, AIMLT.
Vice-President, Administration
Dr. Olusola Womiloju, Ph.D.
Vice President, Finance
Transforming, Uplifting and Reforming Nigeria, TURN is a diaspora non-governmental organization with a
mandate to address critical issues relating to the humanitarian needs and services in Nigeria. It was formed in 2004 and
has worked without much publicity on projects aimed at alleviating the suffering of Nigerians. It operates on the ideology
that rests on a tripod of collaborations with reputable organizations of like minds within Nigeria and the diaspora who
share the goals of transforming, uplifting and reforming our great country, Nigeria. TURN operates on the philosophy of
giving back to the homeland.
For additional information about TURN and further information, kindly visit TURN website: www.turnigeria.org or mail [email protected]
