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$500m Chinese Loan: Reps Summon Amaechi, Others Over Railway Contracts
The House of Representatives has invited the Minister of Transportation, Chibuike Ameachi, his Communications and Finance counterparts, Dr Ali Isa Pantani and Mrs Zainab Ahmed to provide answers on $500million loan to be sourced from the Export-Import Bank of China for railway lines in the country.
The House Committee on Treaties, headed by Rep. Nicholas Ossai (Delta-PDP), also wants the government appointees, to provide details on the agreement signed between the Federal Ministry of Transport and the CCECC in respect of some railway projects in the country.
The projects are the Abuja-Kaduna, Lagos-Ibadan, Ibadan-Kaduna and Kaduna-Kano railways lines.
Also, summoned alongside the ministers is the Director-General of the Debt Management Office (DMO), Ms. Patience Oniha.
Ossai, who issued the summons, said they are expected to appear on August 17, unfailingly with details of the contracts concerned.
According to Ossai, the House would need details on the agreement between the Federal Ministry of Transport and ZTE (Nig) Ltd in respect of the provision of community actions and signalling equipment for the Itakpe-Ajaokuta-Warri line.
Also, the ministers are to provide details of the agreement between Federal Ministry of Transport and the China Railway Construction Company International (CRCCI) in respect of the Itakoe-Abuja line/ New Port in Warri project.
At its sitting, yesterday, the committee raised alarm over alleged waiver of Nigeria’s sovereignty in the government concessions loan agreement on Nigeria National Information and Communication Technology Infrastructure Backbone Phase II project between the government of Nigeria, represented by the Federal Ministry of Finance (borrower) and the Export-Import Bank of China (lender) dated September 5, 2018.
The committee specifically cited Article 8(1) of the agreement, which states that “the borrower hereby irrevocably waives any immunity on the grounds of sovereign or otherwise for itself or its property in connection with any arbitration proceeding pursuant to Article 8(5), thereof with the enforcement of any arbitral award pursuant thereto, except for the military assets and diplomatic assets”.
But in his presentation, the Minister for Transportation, Chibuike Ameachi, said the loan being sourced by his ministry is a total of $500million to complete the Lagos-Ibadan railway line, which he put at a total of $849million, with $349million as counterpart funding.
He explained that because China, which is giving the loan is sensitive and monitoring happenings in Nigeria, the House committee might wish to give him till end of December when all the loan would have been received.
Amaechi argued that the constant investigations by the National Assembly might give the impression that a part of the government does not approve of the loan and the Chinese government may withdraw the loan.
He said if this happens “some parts of the country will suffer.”
He added that the railway projects (Lagos-Ibadan, Ibadan-Kano) are yet to be completed and these will be affected Amaechi appealed to the committee to consider national interest in carrying out their oversight function.
He said if the Chinese government gets to know that there is a disagreement between the executive and the legislature concerning the loans, the process may be truncated.
“My fear is that if this probe continues, at the end of the day, some sections of the country may suffer. In oversight, there is what is called national interest. But in asking questions on these loans now, it may jeopardize these loans. The Lagos- Ibadan is not completed; the Ibadan-Kano is not completed.
“Let the government of China not say there us a disagreement in government on this loan and so we will not give this loan. So, I appeal to the chairman to give us from now till December, when we are likely to secure the loans. Then, from January, February, you can resume this investigation”.
Amaechi’s plea was not taken as the committee chairman insisted that the minister should return to the committee on August 17 with other ministers to give details of the contract agreements. He said, “we are looking for transparency, which is what the Chinese government wants. So, we will like to have the pre-payment plans from these loans.
“Most of these contracts signed by the government are not known by the National Assembly as provided for in the DMO Act, and we are supposed to know. We need to know how many Chinese are involved in these projects and their expertise.
“In the documents, we have seen there are variations in interest rates. Why do you sign these documents at the same time with different interest rates”.
Similarly, the Senate, yesterday, summoned the Minister of Finance, Zainab Ahmed, her counterpart in the Ministry of Works and Housing, Babatunde Fashola, and the Accountant General of the Federation, Ahmed Idris, to appear before it over the N2.7trillion legacy projects of the Federal Government.
Also summoned were the contractors handling the legacy projects which included the Lagos-Ibadan Expressway, the Abuja-Kaduna-Kano Expressway, and the Second Niger Bridge.
The Senate Committee on Finance led by Senator Solomon Adeola gave the summons after a meeting with the management of the Nigeria Sovereign Investment Authority (NSIA), led by its Managing Director, Uche Orji.
Adeola, who spoke on behalf of the Senate panel, said the committee needed those being summoned to provide information about the variations that had taken place on the projects and the approving authorities.
He also said the panel would need to know details of the agreements signed between the Federal Government and the contractors before the NSIA took over the projects.
There has been an existing tripartite agreement between the NSIA, the Ministry of Finance and the Ministry of Works on the Legacy projects.
The Senate summon was sequel to the disclosure by the MD of the NSIA that his agency had no details of the agreements signed on the projects before he took over.
He said, “On the issue of funding, by virtue of the information at my disposal and by what the finance minister made me to understand, is that you are playing critical roles by providing funds for the legacy projects. As of today, two years down the line, only $300million is in the books, this cause for concern.
“We believe that funding is critical to these projects. If the funding is not there, there is no way we can achieve those time frame that you have set out for the completion of the projects.
“On that note, we would be bringing on board, the Minister of Finance, the Minister of Works and Housing, the Managing Director of the NSIA, the Accountant General of the Federation, and the contractors who should be invited by the Minister of Works.”
The Federal Government Staff Housing Loans Board says it has begun the compilation of list of retired civil servants who have defaulted on the full repayment of housing loans obtained.
Head of Information and Public Relations, FGSHLB, Mrs Ngozi Obiechina, disclosed this in a statement in Abuja, yesterday.
Obiechina quoted the Executive Secretary of the Board, Mrs Salamatu Ahmed, as saying that the move was aimed at recovering mortgaged properties from retirees who failed to meet their loan obligations.
Ahmed noted that the decision followed a recent memo issued by Mrs Patience Oyekunle, Permanent Secretary, Career Management Office, Office of the Head of the Civil Service of the Federation.
According to her, the memo reminded public servants of the mandatory requirement to obtain a Certificate of Non-Indebtedness to the FGSHLB and MDA Staff Multipurpose Cooperative Society as a precondition for retirement.
The Executive Secretary said that the board would take necessary legal steps to repossess properties where applicable, in line with the terms of the loan agreements.
She said this was in line with the provisions of the Public Service Rules 021002 (p), issued by the Office of the Head of the Civil Service of the Federation.
“I am directed to bring to your attention the provision of Public Service Rule (PSR) 021002 (p), which mandates all public servants to obtain a Certificate of Non-Indebtedness as a prerequisite for retirement.
“The Federal Government will commence the seizure of mortgaged properties belonging to retiring federal public servants who have failed to fully repay housing loans obtained from the board,” she said.
Ahmed explained that the FGSHLB reserves the legal right to repossess any mortgaged property in cases where a public servant exits service without fully repaying the loan.
She reiterated that the directive also applied to already retired officers who were still indebted.
She urged all affected public servants to regularise their loan status and obtain the required clearance certificate without delay.
“The board is currently compiling a list of such retirees, which will be forwarded to relevant regulatory agencies for debt recovery.
“The FGSHLB remains committed to enforcing compliance and ensuring proper loan recovery procedures are followed, “ she added.
The Federal Government has kicked off a three-day induction programme for newly appointed Permanent Secretaries and the Accountant-General of the Federation, aimed at equipping them for strategic leadership and effective policy implementation.
The induction, according to a statement yesterday by the Director, Information and Public Relations, Federal Ministry of Information and National Orientation, Eno Olotu, which commenced on Wednesday, is being held at the National Counter Terrorism Centre in Abuja.
Speaking at the opening session, the Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, congratulated the new appointees and described their roles as pivotal to governance and national development.
“Permanent Secretaries are the engine room of the government. They are critical to driving policy implementation, institutional performance, and reform across the service”, she said.
The Federal Government has kicked off a three-day induction programme for newly appointed Permanent Secretaries and the Accountant-General of the Federation, aimed at equipping them for strategic leadership and effective policy implementation.
The induction, according to a statement yesterday by the Director, Information and Public Relations, Federal Ministry of Information and National Orientation, Eno Olotu, which commenced on Wednesday, is being held at the National Counter Terrorism Centre in Abuja.
Speaking at the opening session, the Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, congratulated the new appointees and described their roles as pivotal to governance and national development.
“Permanent Secretaries are the engine room of the government. They are critical to driving policy implementation, institutional performance, and reform across the service”, she said.
“The expectations are high, and the responsibility is immense. But with commitment and teamwork, we can deliver a more efficient, accountable, and citizen-centred public service.
“This final lap of FCSSIP 25 calls for urgency, accountability, and strategic focus. You must translate vision into measurable results,” she stated.
In her welcome address, the Permanent Secretary, Career Management Office, Mrs. Fatima Sugra Tabi’a Mahmood, described the programme as a strategic investment in leadership capacity and institutional effectiveness.
The sessions featured expert-led discussions, simulations, and strategic briefings facilitated by a distinguished faculty, including Engr. Suleiman Adamu, former Minister of Water Resources; Dr. Hadiza Bala Usman, Special Adviser to the President on Policy and Coordination; Mrs. Beatrice Jedy-Agba, Solicitor-General of the Federation and Permanent Secretary, Federal Ministry of Justice; Alh. Yusuf Addy, retired Federal Director; Alhaji Bukar Goni Aji, former Head of the Civil Service of the Federation; Amb. Mustapha Lawal Suleiman, Mr. Adesola Olusade, and Dr. Ifeoma Anagbogu, all retired Permanent Secretaries.
Participants include Dr. Obi Emeka Vitalis, Mrs. Fatima Sugra Tabi’a Mahmood, Mr. Danjuma Mohammed Sanusi, Mr. Olusanya Olubunmi, Dr. Keshinro Maryam Ismaila, Dr. Akujobi Chinyere Ijeoma, Dr. Umobong Emanso Okop, Dr. Isokpunwu Christopher Osaruwanmwen, Mrs. Oyekunle N. Patience, Dr. Kalba U. Danjuma, Mr. Nadungu Gagare, Mr. Onwusoro I. Maduka, Dr. Usman Salihu Aminu, Mr. Ogbodo Chinasa Nnam, Mr. Ndiomu Ebiogeh Philip, Dr. Anuma N. Ogbonnaya, Mr. Adeladan Rafiu Olaninre, and Mr. Mukhtar Yawale Muhammed, alongside the Accountant-General of the Federation, Mr. Shamseldeen Babatunde Ogunjimi.
The induction programme will feature sessions on public sector leadership, policy delivery, ethics in service, digital transformation, and performance management.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has announced that a forensic audit of the Nigerian National Petroleum Company Limited (NNPCL) will begin soon.
Edun revealed this at the ongoing Nigerian Investor Forum, held alongside the IMF/World Bank Spring Meetings in Washington DC.
The minister explained that the recent changes in the NNPCL management are part of a broader effort by the Federal Government to clean up and examine the company closely.
While addressing top global investors, including representatives from J.P. Morgan, Edun shared key reforms the government has introduced to revive the economy and restore investor confidence.
He told the investors that the government’s bold economic steps have laid a strong foundation to attract private investment.
He stated, “Our goal is not just to maintain this momentum, but to accelerate it. We are targeting seven per cent annual growth, and we believe the policies we have implemented have laid the groundwork to achieve this.”
Edun highlighted that President Bola Tinubu’s administration has rolled out major reforms that are already making a difference.
He added that the Nigerian economy grew by 3.84 per cent in the fourth quarter of 2024 and recorded a 3.4 per cent growth for the year.
Edun further stressed the importance of the reforms, describing them as “unprecedented,” adding that, “We said we would do it, and now we have done it. This time, we’re staying the course.”
He pointed out signs of progress such as lower budget deficits, a better trade balance, and a more stable exchange rate.
He also said that the focus is now on growing key sectors, especially agriculture.
According to Edun, agriculture is at the top of the government’s agenda, with the aim of improving food supply and increasing productivity.
“We aim to close the food supply gap, not by importing more, but by enabling domestic producers to scale and innovate,” he said.
On infrastructure, Edun revealed that the government has rolled out 90,000km of fibre optic cable to improve internet access.
He said this move is crucial for supporting young Nigerians and tech startups.
He also noted that 4,000km of roads have been offered for private sector participation, with the first 1,000km already approved for construction.