NGO demands explanation from Adeosun on $5.5bn foreign loan

A non-governmental organisation, Social Action Nigeria, has demanded an explanation from the Minister of Finance, Kemi Adeosun, on the $5.5bn, which the Federal Government has started borrowing from foreign sources.
In two letters dated November 24 and December 18, Social Action Nigeria said it was necessary for the government to give explanation and proper account of the funds it was borrowing on behalf of Nigeria in accordance with the Freedom of Information Act, 2011.
In the letters signed by its Executive Director, Vivian Bellonwu-Okafor, the organisation demanded that the government should disclose the specific projects and the amounts to be spent on them, as well as the conditions, terms, interests and liquidation plan for the loans.
“We are mindful of the potential impact of the loans on the economy of our country, as well as on the lives of Nigerian citizens.
“We are concerned by the paucity of information regarding the proposed loans, a situation that will effectively compromise and, indeed, frustrate any attempt at monitoring of same by any individual or organisation in tandem with constitutional provisions and democratic tenets.
“Further, being mindful of the unsatisfactory application of previous loans obtained by the country and the burdens it placed on the citizenry, we, therefore, request for full disclosure on these loans,”Bellonwu-Okafor said.
The National Assembly had on November 14 approved the borrowing of $5.5bn from external sources by the Federal Government.
According to the Federal Government, while $3bn would be spent on refinancing of some domestic loans that were due, $2.5bn would be spent to close the gaps in the 2017 budget financing.