11 February 2017
Governor of Ekiti State, Ayodele Fayose, has criticized the decision of the Federal Government to secure $1bn Eurobond which re-payment would last till 2032. He said the loan would only lead Nigeria into economic misery.
Fayose, who disclosed this in a statement issued on Friday, by his Chief Press Secretary, Idowu Adelusi, questioned if the repayment of the bond will be made by direct deductions from Nigeria’s crude oil sales or from Federal Government’s share from the federation account.
“What I’m even worried about and which they must explain to us is that you cannot get a bond without committing it to the source.
“Is the repayment going to be made by direct deductions from Nigeria’s crude oil sales or from Federal Government share from the federation account?
“If it is going to be made directly from proceeds of crude oil accruing to Nigeria as a country, then the bond belongs to the Federal, State and Local Governments and not Federal Government alone.
“The Federal Government is just one of the federating units making up Nigeria and revenue accruing to the country cannot be used to repay bond taken by the Federal Government for its own use alone.
“The Federal Government must therefore tell Nigerians how it intends to repay the facility from now till 2032. If it is going to be through direct deductions from revenue accruing to Nigeria, such that money would be taken from source which would not be part of the accruers to the central body, it means the $1 billion bond belongs to Nigerians and it must be shared among the federating units.
“So, we have to find out and take steps. It is either they bring the money and we share it; we take our percentage and they take theirs. The federal government cannot take that money and take it from source and tell us that the money, which belongs to all of us federating units, is its,” he said.
He also said the rate at which the government was borrowing will lead the country into more serious economic woes.
“The APC government is behaving like the prodigal son who asked for his inheritance and spend it lavishly. It is a prodigal government who wants to destroy this country.
“The rate at which they are taking loans which would keep this country indebted till 2032 is quite unfortunate.
“Currently our currency has been badly devalued to N500 to a Dollar. So, how do we pay back the Dollar? They went to tie the money to the source; the accruers outside the country where crude oil revenue goes.
“Apparently, they don’t care what happens tomorrow. They said they want to use the money to fund 2016, 2017, 2018 budgets which means after they are gone, the country can go into blazes and our children’s children can wallop in indebtedness. How can you appreciate that?
“This rate of borrowing would lead this country into serious challenge,” Fayose said.
Author: Janet Johnson
Janet Johnson is a writer who is passionate about helping people and giving solutions to peoples’ needs and problems.
She is an adventurer who would love to see the world one day and probably be an ambassador.