Fayose urges China not to grant Nigeria’s $2b loan
The Ekiti State Governor, Ayodele Fayose, has written to the Chinese government seeking the stoppage of the $2 billion loan being sought by the Federal Government of Nigeria.
President Muhammadu 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 already being serviced with 25 per cent of the Federal Government yearly budget.”
In the letter dated April 12, 2016, with reference number: EK/GOV/28/10, addressed to President Jinping and delivered by Fayose’s Chief of Staff, Mr. Dipo Anisulowo, in Abuja yesterday through the Chinese Ambassador to Nigeria, Gu Xiaojie, the governor said 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.
The letter reads in part: “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 of Nigeria 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 of Nigeria has proposed to borrow to finance the 2016 budget, which is yet to be signed by the President, Muhammadu Buhari, owing to unending controversies between the Executive and Legislative arms of government.”
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