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nairaland.net • View topic - Rogue Nigerian government is back taking Foreign Loans

Rogue Nigerian government is back taking Foreign Loans

Rogue Nigerian government is back taking Foreign Loans

Postby fw12 » Fri Jul 24, 2009 10:38 pm

By Festus Owete
July 24, 2009 06:15PMT


The House of Representatives has asked President Umaru Yar'Adua to order an immediate halt to further foreign loans until the circumstances leading to Nigeria's current debt burden of $3.6 billion is made clear to Nigerians.

The House also mandated its joint committee on Aids, Loans and Debt Management and Justice to find out the country's actual debt profile since 2003.

The committee will also investigate under what platform and under whose approval these foreign loans are being sought, processed, drawn, utilised, and their relevance to the needs of Nigerians and advised the House on legality or otherwise of the loans.

It is to report to the House within two weeks.

The decision was taken following a motion brought by John Halims Agoda (a Senator from PDP, Delta) and supported by 50 others on the rising debt profile of the country.

Mr. Agoda said Nigeria exited the burden of foreign debt a few years ago through the concerted efforts of the Federal Government, the National Assembly and the non-governmental organisations.

He expressed worry over the recent report attesting to Nigerian's foreign debt totalling $3.6 billion, allegedly used to finance projects that are shrouded in secrecy.

The lawmaker said it is a constitutionally imperative for the executive to brief and seek the consent of the National Assembly before sourcing, drawing and utilising of foreign loans under whatever description.

Mr. Agoda regrets the plight of Nigerians who he said have had to make sacrifices and bear the pains of hunger and underdevelopment, underscored by collapsing and deteriorating public infrastructure in virtually all facets of life.

He recalled that only two days ago, Nigeria's health minister, Babatunde Osotimehin signed for a loan of $100 million to combat malaria.

"In October, our nation will be 49 years, are we saying we will be taking loan to combat malaria and other diseases?" He asked. He expressed concern over how the loans are used, saying they are not used to support the productive sector.

He said although President Yar'Adua is a good and transparent man, the same could not be said of the men and women around him who are signing and collecting these loans.

Mr. Agoda cited Section 80 of the 1999 Constitution and other laws, which give the National Assembly powers and control over public fund and over lending. "We must have the opportunity to look at these loans, their implications and the interest," he said. "All we see is that ministers are signing for loans and thereafter sending letter to the parliament. We have to look at the role of the parliament here." He also said that the nation's tax system should be developed to boost revenue as it is done by the Lagos State government, rather than go for foreign loans.

Seconding the motion, Friday Itulah (from PDP, Edo) says every nation, including the United States borrows for development, adding "how do we utilise the money we borrowed?"

Dubious and shady loans

Mr. Itulah, who is the deputy chairman of the committee, said there was no need to start borrowing since it was not long that the nation was forgiven of its debt.

He added that the amended Debt Management Act provides that whenever the executive arm needs to borrow money, it should do so in consultations with the National Assembly, but that this has been violated.

Samson Osagie (PDP, Edo) said even though Nigeria is borrowing money it does not use it to develop its infrastructure. He regretted that Nigerians still travel to other countries, including Sudan for treatment.

"We must direct our attention to the productive sector of our economy. We cannot continue to live in vicious poverty. In the U.S. the parliament debates the merits of any loans, why is our different," he asked.

In his contribution, Senator Aminu Shehu Shagari (PDP, Sokoto) wondered why Nigeria obtains loans to fund unproductive sectors instead of doing so to help the productive sectors like the steel sector.

Mr. Shagari, who is the chairman of the committee on Steel Development, said only $1 billion is required to put Ajaokuta Steel Company back to work. He said that while $500 million is required to complete the complex another $500 million is required to develop other related infrastructures, adding that when completed, the country would be making $400 million profit from the complex.

Prompted by the Speaker, Dimeji Bankole, and Farouk Lawan who, as the House committee chairman on Finance, accompanied officials of the executive arm to negotiate debt forgiveness for the country five years ago, told his colleagues that the manner loans were taken was dubious, shady and corrupt.
fw12
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Postby xdunamis » Thu Oct 22, 2009 7:38 pm

Can you imagine a country where leaders borrow funds from external source only to redirect it to their private accounts. Only God can deliver Nigeria from the hands of all these fraudulent leaders.
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