Kano Elders petitions Buhari over Ganduje’s N300 Billion loan from China
Kano Unity Forum has petitioned President Muhammadu Buhari, the National Assembly, and the Federal Ministry of Finance, against moves by the state Governor, Umar Ganduje to take over N300 Billion loan from China.
The Forum, headed by a former presidential candidate of the defunct National Republican Convention, Alhaji Bashir Tofa, said on Thursday, August 27 that the governor plans to obtain loan from China Development Bank to construct phase 1 component of Light Mono Rail project in the State metropolis.
The petition to Buhari signed by Tofa on behalf of Kano Unity Forum stated that “Save for few in official circles, nobody else knows the terms and conditions of the loan agreement”, adding that, “the exact amount being borrowed is shrouded in secrecy”.
“A 1st phase of the project costing over N300 billion, or may be even the N828 billion mentioned by others, coming mostly from a foreign loan is mind-boggling, to say the least. A rethink is not only needed, but necessary.”
“Based on the analysis of the present indebtedness of Kano State as provided for by the Debt Management Office (DMO) Nigeria, it is extremely difficult, almost impossible for Kano State to sustain any indebtedness beyond the current liability portfolio of the state.”
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Tafo noted in the petition to Buhari that “It needs to be noted that a rail project is never a project to be put in haste as we observed that it is neither in the medium nor long term plans of the State Government.
“If indeed the Chinese want to genuinely help with cheap loans, they should be requested to support critical sectors such as education, health, agriculture, power, science and technology, infrastructure, industry and water supply”, adding that “after all, the Chinese have become world leaders in these aspects of transformative development.”
“Kano Unity Forum would not give any self-serving politician the latitude to increase poverty and deprivation within the general public through ill-conceived public works.”
“We shall not be deluded by the attractive idea of good return from the investment. Rail project world over are known as highly capital intensive with a very negligible rate of return on investment.
It’s more of a social welfare project, especially in less developed economies. “
Daily Times recalls that the Minister of Transportation, Rotimi Amaechi, has pleaded with the National Assembly to stop questioning the nation’s loan agreement with China.
Rotimi Amaechi, says the Nigerian government has the capability to pay back loans collected for the construction of rail projects within the stipulated period of 20 years.
Mr Amaechi, in a statement on Saturday, said China was the only country giving out loans with a low-interest rate of 2.8 per cent.
He said no country in the world would give out a loan without a guarantee to pay back such loans.
