Less than two years to the end of his tenure, the Murtala Nyako administration in Adamawa State is seeking a loan facility from the Islamic Development Bank (IDB) to the tune of $24 million for development, an effort opposition camp is fighting against. OBIORA IFOH takes a look at the benefit or otherwise of this loan.
Governments all over the world, particularly the developing countries have survived largely on loans.
These loans are used for the purpose of funding development and infrastructure. But critics have also frowned at taking these facilities especially when the objectives of its sourcing could be said to be less noble.
In Adamawa State, for instance, a N3.7bn loan for the building of just three secondary schools by a government that has less than two years in government, certainly should attract eyebrows, particularly when such government has done over six years in the saddle.
So, when Governor Murtala Nyako wrote to the Speaker of the State House of Assembly informing him on the need to secure $24m (N3.7bn) loan from the Islamic Development Bank, IDB, not a few believe it would lead to the commencement of legal fireworks. Meanwhile, the Assembly led by Ahmadu Umaru Fintiri believes that the said loan is for the interest of the people and therefore could have no qualms passing a bill approving it.
The House while also passing a vote of confidence on the governor said his administration had executed many unprecedented developmental projects.
The IDB loan was meant to assist the state government establish three new science secondary schools in the three senatorial districts of the state.
The schools, according to the letter signed by the governor, are to be located in Madagali Local Government Area, which is an all-boys school in the Northern Senatorial Zone, is to have an enrolment of 360. The second school is to be sited in Song Local Government Area.
It is an all-girls school in Central Senatorial Zone, with an enrolment figure of 600. The third school is to be located Mayo-Belwa Local Government Area as an all-boys school in Southern Senatorial Zone, with an enrolment of 360.
However, a suit has emanated over the initiative, the suit that has Engr. Albert Stephen, Dr. Penni Boga and Dr Francis Zira as plaintiffs; is predicated on the current debt profile of the state vis-a-vis the low Internally Generated Revenue, IGR, of the state. Describing the attempt by the state government to borrow as unhealthy, the plaintiffs challenged the morality of the government to seek for the loan, when viewed against the backdrop that the Nyako administration is in its twilight.
The plaintiffs said: "Seeking approval to source for an external loan to the tune of $24,113,417 from the Islamic Development Bank by the Adamawa State Government at this point in time and having regards to our external and internal financial indebtedness is altogether unreasonable, unwarranted and unconstitutional."
Named as defendants in the suit are Adamawa State government, Governor Nyako, Adamawa State House of Assembly and the Attorney General and Commissioner of Justice.
The plaintiffs contended that obtaining a loan from the IDB, which operates purely on the basis of Islamic Banking and Islamic Economic Principles by the Adamawa State Government (the 1st Defendant) upon that application of the Governor of Adamawa State, "is discriminatory and a breach of the 2nd defendant's Oath of Office under the Constitution of the Federal Republic of Nigeria, 1999 (as amended)."
They, therefore, sought for an injunction "restraining the defendants jointly and or severally from further sourcing for external loans and or granting approval for the sourcing of external loans either from the IDB or any other bank or financial institution during the pendency of the terms of their governance/leadership."
The plaintiffs in their affidavit in support of the suit, declared: "That considering the statutory allocations, internally generated revenue and the current debt burden of Adamawa State, the 1st Defendant is not in a position to take a loan from IDB or any bank at all; that Adamawa State presently has a very heavy debt burden which has drawn the ire of the Debt Management Office, DMO, and the taking of another loan will put unbearable burden on the state and her citizens; that the IDB is operated and managed on purely or fully Islamic Sharia, Sharia Economic Principles and propagates Islamic ideals and beliefs; that the Constitution of the Federal Republic of Nigeria, 1999 (as amended) prohibits discrimination based on religious belief among others and that Adamawa State is a multi-religious and multi-ethnic state and highly sensitive or volatile on religious issues."
When the matter came up for mention and hearing penultimate Friday, Justice Hafsat Abdulrahman of High Court 8, Yola, adjourned the suits.
Thousands of Adamawa State indigenes had stormed the court premises to lend their support to the action of the stakeholders as early as 7.30a.m., a development that made the premises of the High Court being filled to capacity by people from all walks of life.
When the case was mentioned, F.D. Kozah Esq. appeared for the plaintiffs, while Konleganyiga U. J. Esq. appeared for the Adamawa State Government, Governor Nyako and the Attorney General and Commissioner for Justice, while Abubakar Sa'ad Esq. appeared for the Assembly. Kozah told the court that the matter was for mention and that the defendants have filed their memorandum of appearance, adding however, that they did not file their statement of defence.
He noted that they were still within time to file their statement of defence and other processes required by the rules of the court, adding that in that circumstance, the court should adjourn the case to a suitable date to enable the defendants file their statement, if any. The defendants conceded and accordingly Justice Abdulrahman adjourned the case to December 9, 2013 for mention.
The trial judge based the long adjournment on the need for her to travel abroad for medical attention. Kozah later told journalists that based on the position of the law, it is expected that once a suit is pending, parties must maintain the status quo ante until the determination of the case. There is no doubt that the days ahead may prove heady for both plaintiffs and defendants as they attempt to justify their claims and defence.
In a state that has a low IGR, the seeming subterranean battle for supremacy by the adherents of the two major religions may introduce a threatening spectre.
The case may turn out a bitter test on what to expect in the future for the multi-ethnic and religious society of the state. The suit, according to findings, is hinged on fears by the indigenous Christians of Nyako's deliberate religious colouration in seeking funding for development projects in the state.
"Is it only in IDB that Nyako can seek loans for development purposes? There are banks that he could really get these loans from. So, why is he insisting that it must be in IDB? I think he should try to improve on the IGR of the state and not increase the debt burden for the people," said Adamu Joseph, an indigene of the state.
When contacted, a top official of the state government refused to make comments, stating that the government was a continuous process and it should be left to the court to decide which side the pendulum swings to. "I can assure that the court will decide.
Since the case is before a learned judge, let us see how the matter is resolved. But I believe that at the end of the day, the people will get to know the responsibility of government and the citizens will be better enlightened on the matter," said the official who craved anonymity. An indigene of Adamawa state, Mohammed Ahijo, told National Mirror that the case is an interesting one, as it will afford the opportunity to clear the air on this burning issue.
"The three indigenes of the state who are Christians are opposed to the state government securing a loan from an Islamic bank. The court will at the end adjudicate on the matter and that will serve as yet another judicial interpretation over the religious fault line that is daily becoming a threat in some states of the North," Saheed said. However, pundits in the state have pointed political reasons to the legal action taken against the government.
A source close to Government House in Yola told National Mirror on condition of anonymity that the suit is politically motivated. "You know the governor is not in the good books of the Presidency and the PDP at the National Secretariat. You also know that it is not Adamawa State government alone that has or is taking external loans. Then why is Adamawa the cynosure of all eyes? Is the intended loan for development purpose or selfish?" the source retorted.
The state chapter of the party said it has thrown its weight behind Nyako's administration's plan to seek the loan even as it also advised political elites in the state to join hand of fellowship with the administration to transform the state to desire dream of the people of the state.
Speaking recently, PDP factional secretary, P. Elisha, charged stakeholders in the state not to play politics with government transformation policy that is targeted to touch the lives of the people of the state. He also took a swipe at those that dragged the state government to court over the loan describing them as anti- progress.
"The South West governors were not taken to court by their political elite when they approached banks for loan. The present administration had genuine intention to borrow the funds in order to transform the lives of the people," he said.
Former governorship aspirant in the state, Dr. Umaru Ardo told National Mirror that the Nyako administration was the worst thing that has happened to the state with no identifiable achievement in the last six years of his administration. He also said the debt owed by this government is unprecedented in the history of the state and a further loan will simply mortgage the future of the state. At the moment, all eyes are on the court to rule on the controversial loan.
Will the court allow Nyako to secure the IDB loan or will the plaintiffs seeking to stop the state government securing the loan triumph at the end of the day? The answer lies in the womb of time.