Governors are seeking for a meeting with the National Assembly to try to persuade lawmakers to approve $3.059 billion in foreign loans being sought by some states. This was among the resolutions of the Nigeria Governors Forum reached after a meeting in Abuja yesterday. Also yesterday, the governors attended the National Economic Council meeting with a demand for the sharing of $1 billion dollars from the excess crude account.
Some states are listed as seeking billions in foreign loans as part of the Federal Government's $7.9 billion loans package for the so-called pipeline projects under the Medium Term External Borrowing Plan of 2012 to 2014.
The benefitting states include Niger ($124 million), Ondo ($77.9 million), Enugu ($148 million), Anambra ($75 million), Yobe, Bauchi and Kaduna.
The National Assembly has been holding public hearings to seek for justification for the loans, which lawmakers said could over burden the nation in future.
Speaking to journalists at the end of the governors' forum meeting in Abuja yesterday, Ekiti State Governor Kayode Fayemi said the National Assembly has been dawdling on the borrowing plan hence the decision of the forum to seek for a meeting with the lawmakers.
"The National Assembly had been sitting on this and some issues had come up and that is what we are trying to clear," he said.
In a communiqué after the governors' meeting, read to journalists by Rivers State Governor Rotimi Amaechi, the forum said it would also discuss with the Federal Ministry of Finance over the loans.
Governor Peter Obi of Anambra State, who also spoke with newsmen, said borrowing for development purposes was right. Obi added that it is wrong when borrowing was undertaken for consumption.
Governors of Abia, Ebonyi, Anambra, Enugu, Imo, Borno, Taraba, Bauchi, Gombe, Akwa Ibom, Kaduna, Jigawa, Kano, Kebbi, Zamfara, Kogi, Niger, Ondo, Adamawa, Kwara, Lagos, Ogun, Ekiti and Yobe attended the meeting.
Road to dept trap
During the hearing session at the National Assembly on Monday, Minister of State for Finance Yerima Ngama and some state finance commissioners defended the external loans, which they said were concessional with low interest charges and tied to specific projects.
But during a debate in the Senate over the loans last month, senators accused President Jonathan of leading Nigeria into a debt trap.
A Daily Trust analysis published on November 14 show that at least $5.34 billion of the $7.9 billion foreign loans will go back to the lenders in form of interests, service charges, commitment charges and management fees within the 10-year moratorium period alone.
The foreign loans are being taken from several international creditor institutions including the World Bank, African Development Bank, Islamic Development Bank and French Development Agency.
Based on the borrowing plans submitted to the National Assembly, Niger State is asking for $78 million for rural mobility, $14 million for irrigation and $32 million for FADAMA, while Anambra wants $75 million to control erosion and flood.
Lagos State asked for the inclusion of the second tranche of its $600 million loan plan in the borrowing plan.
On Monday, Ondo State Commissioner for Finance Mr. Yele Ogundipe told a Senate committee that the state would spend $50 million for health programmes and $27.9 million for youth employment. Enugu said it intends to spend $50 million for watershed management project, $40 million for youth empowerment, and $40 million for energy project from the loan package.
Other expenditure plans from the loans include Yobe State's water supply for Gashua ($40 million), upgrading of hospital facilities in Kaduna State ($44.69 million) and science secondary schools in Kaduna ($17.32 million).
Yesterday, the House of Representatives Committee on Debts, Aids and Loans held a hearing where it grilled Aviation Minister Stella Oduah over a $500 million loan proposed for upgrade of Lagos, Abuja, Kano and Port Harcourt airports.
Chairman of the committee Rep Adeyinka Ajayi demanded to know the amount of money attached to each of the airports. The lawmakers said while they were not opposed to the loan in principle, they were concerned about the use of some local contractors whom they said are doing shoddy jobs at some of the airports.
Oduah said the facility being sought was a concessional loan that would last for 25 years, with a ten-year moratorium and a 2.5 per cent interest rate. She said airports across the world are no longer places used merely for parking of aeroplanes but business hubs with cluster of business activities.
A $1bn excess crude demand
Meanwhile, governors yesterday asked the Federal government to release $1 billion (about N155 billion) from the Excess Crude Account (ECA) to meet their financial obligations.
Briefing State House correspondents on the outcome of the National Economic Council meeting, Sokoto state deputy governor Mukhtar Shagari said though the issue of utilization of the ECA funds is still pending in court, states have requested to share $1 billion to enable them pay for ongoing projects.
"We have agreed to request for the release of $1 billion from the ECA to enable state governments meet their financial obligations and a decision is taken that this would be looked into. The matter is still in court and we agreed that is should be allowed to go on so as to reach a conclusion on how the fund should be utilized," he said.
"We agreed that we should get the advice of the Attorney General of the Federation (AGF) because the matter is still in court. No decision has been taken yet on the matter."
Also briefing newsmen on the meeting, Gombe State Governor Ibrahim Hassan Dankwambo said negotiation is ongoing between government and oil marketers to resolve the ongoing hitch in supply of petroleum products.
According to him after verification of claims made by the marketers, government has paid a total of N881 billion as subsidy claims while and outstanding N100 billion is pending and would be paid after clearance.
The council has also set up a committee to eliminate multiple taxation on telecommunication facilities in order to boost service delivery by providers.
Shagari said the committee is to be chaired by Dankwambo, with Governors Saidu Dakingari (Kebbi), Abiola Ajimobi (Oyo), Martin Elechi (Ebonyi), Adams Oshiomhole (Edo) and Abdulfatah Ahmed (Kwara) as members. Other members are Communications Minister Omobola Johnson and executive vice chairman of the Nigerian Communications Commission, Dr. Eugene Juwah.
The panel is to report on ways to improve telecommunication service to all states of the federation to enhance Federal Government's policy on fertilizers distribution to farmers through the use of GSM phones.
Daily Trust
That is all they know .
They only talk about money all the time.When it comes to doing their main work now you wont hear anything.
Hahah thats funny sholaz.I agree wit u though.
They dont work at all