Chieftain of the All Progressives Congress, Chief Eze Chukwuemeka Eze has described comments credited to the factional chairman of APC, Rivers state, Tony Okocha, over Federal Government loans from China for rail projects during the administration of Mohammadu Buhari where the Rt. Hon. Chibuike Amaechi held sway as Transportation Minister, as a noisy exudation of appalling savagery exhibited to sway unsuspecting members of the public into a perpetually futile scheme of smear campaign against the former Minister, Rt. Hon Chibuike Amaechi.
Recall that Mr. Okocha, had, during the week, hosted a press conference where he alleged amongst others that Amaechi led the massive borrowings from China that has put Nigeria in a dungeon.
Mr. Okocha, in his media parley, also ”made a cosmetic call on President Tinubu to declare a state of emergency in Rivers State over the political crisis instigated by the Minister of FCT, Nyesom Wike and his circle of stranded politicians including same Tony Okocha, a political tradesman and conflict entrepreneur who currently feeds fat from the brewing clash”.
Reacting through a statement made available to the media, Eze flayed Mr. Okocha for his flamboyant ignorance particularly over the loans from China to facilitate major rail and road projects in the country during the Buhari era which was a direct agreement between the Nigerian Government through the Ministry of Finance (on the one part) and the China (on the other part).
He restated that the terms of the loan are in compliance with the provisions of Section 41 (1a) of the Fiscal Responsibility Act, 2007 and the low interest rate of 2.50% per annum reduces the Interest Cost to Government while the long tenor makes possible the repayment of the principal sum of the Loans over many years.
The impact of these Loans, especially on rail transportation, Chief Eze noted, is manifestly evident, citing the Idu – Kaduna Rail Line which has become a major source of transportation between Abuja and Kaduna While the Lagos – Ibadan rail line has significantly eased traffic on the busy Lagos -Ibadan Expressway.
These projects to which the loans are tied have the significant advantage of job creation, not only by themselves but through direct and indirect service providers, a number of which are Small and Medium Enterprises.
It is widely accepted that investment in infrastructure is one of the most effective tools for countries to achieve economic growth and development. Using Loans from China to finance infrastructure is thus in alignment with this position.
Eze informed Okocha that the principal process and requirements for borrowing by the Nigerian Government are expressly stated in the Debt Management Office Establishment (ETC) Act, 2003 (DMO Act) and the Fiscal Responsibility Act, 2007.
According to Section 21 (1) of the DMO Act, “No External loan shall be approved or obtained by the Minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution” and Section 41 (1a) of the FRA, “Government at all tiers shall only borrow for capital expenditure and human development, provided that, such borrowing shall be on concessional terms with low interest rate and with a reasonable long amortization period subject to the approval of the appropriate legislative body where necessary”.
Further exonerating Amaechi of any wrong-doing as speculated by Mr. Okocha, Eze said the Federal Ministry of Finance, Budget and National Planning works with the MDAs under whose portfolio a proposed loan falls and also with the Debt Management Office. Thereafter, the approval of the Federal Executive Council (FEC) is sought. It is only after the approval by FEC that the President requests for the approval of the National Assembly (NASS) as required by Section 41 of the Fiscal responsibility Act, 2007. More importantly, it is only after the approval of NASS that the Loans are taken and Nigeria begins to drawdown on the Loans.
”Simply put, loaning from any source is a joint activity between the Executive (FEC) and the Legislative (NASS) Arms of Government and the loans taken to fund critical infrastructure projects under Amaechi’s Ministry during the Buhari administration was not Amaechi’s singular effort and he did not sign as a party to them but Nigeria did”, he noted.
On signing off Nigeria’s sovereignty, Eze said the clause is a standard contractual parlance inserted in every inter-country loan agreements depicting an assurance from the borrowing country that the loan will be repaid and in event of default by the borrowing Country, the lending country will not be estopped by virtue of the borrowing country’s sovereignty from taking the assets built with the borrowed fund and nothing more.
He further said Okocha does not have the authority of Rivers APC to speak on their behalf in whatever capacity and every opinion expressed by the political jobber represents his personal view or the opinion of the interest he represents and should not be seen as the collective asseveration of committed party faithful in Rivers State.
Rebutting the call for an emergency rule (state of emergency) in Rivers State, Eze said the call has been the target of the FCT Minister; to create an unhealthy, crisis-ridden environment in the state and use cronies like Tony Okocha to push for State of Emergency in the state.
He called on the President and Nigerians to disregard the blabbing of the unstable and politically stranded Tony Okocha and his irks whose motives are in sharp contrast to the administrative precepts of President Tinubu and Gov. Siminialayi Fubara who is committed to realign Rivers on the path of progress.
