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$33bn Chinese Loans: Reps Probe Panel Postpones Hearing …As Amaechi, Lawmakers Clash
The House of Representatives has suspended its investigative hearing on Nigeria’s external borrowings and commercial agreements with other countries, especially China.
The House Committee on Treaties, Protocols, and Agreements had invited several ministers and top officials of the Federal Government to the third hearing, yesterday.
Those expected at the hearing included the Minister of Works and Housing, Babatunde Fashola; Minister of Communications and Digital Economy, Ali Pantami; Minister of Police Affairs, Muhammad Maigari; and Minister of the Federal Capital Territory, Mohammed Bello.
Both Bello and Maigari had arrived at the venue.
The Chairman of the committee, Hon Nicholas Ossai, who led members of the panel into the venue about one hour behind schedule, called for the adjournment after the opening prayers were said.
Ossai said the lawmakers needed to scrutinise the documents already presented to it, while the panel would also demand explanations from the Federal Ministry of Justice on the loans and agreements.
The committee, therefore, resolved to adjourn till next Tuesday.
Earlier, there was heated argument at the House of Representatives Hearing Room 028, last Monday between Minister of Transportation, Chibuike Rotimi Amaechi and House Committee Chairman on Treaties, Particulars and Agreement, Hon Ossai Nicholas Ossai.
It was during the legislative hearing on the loans agreements signed by the ministry.
At issue was an alleged $33billion loan which Ossai said Nigeria had signed.
But the minister denied any such agreement.
The drama unfolded before Minister of Works and Housing, Babatunde Fashola, and the Minister of Federal Capital Territory (FCT), Muhammed Bello.
Amaechi, who had warned the committee against scrutinising the Chinese loans, repeated his position that Nigeria might lose the opportunity of a loan to fund the Lagos-Calabar coastal rail line and the people of South-South would be denied that project because “of the committee you set up to investigate the Chinese loans.”
Ossai (PDP Delta), frowned at the “misconception and misgivings” on the legislative scrutiny of various agreements signed by government officials.
He said: “We have heard some people ask why we are focusing on only Chinese-related loans and commercial contracts. We will like Nigerians to know that we aren’t focusing on only Chinese loans. From what we know, Nigeria has over 500 bilateral loan and commercial contracts agreements and investments treaties with different countries and institutions.
“There is no way the committee will do a thorough job without segmenting the issues based on countries, institutions, or MDAs. Thus, it must be clearly noted that this is not targeted at only China, neither was it designed to impede the development of the railway sector and other infrastructures.
“But rather to ensure full disclosure, transparency, accountability, utmost good faith, and value for money in both the bilateral loans and commercial contracts agreements entered into by the Nigerian government.
“The loan agreements we have seen so far, show that government officials charged with the responsibility of representing Nigeria were more desperate to just take the loans at any condition, possibly using non-negotiated loan agreements templates rather than go through the rigour of diligent technical review of negotiating specific clauses with clarity and for national interest.
“For instance, it’s a common practice that most international loan agreements would adopt ‘Sovereign guarantee’ and a neutral international arbitration centre as opposed to waiving of our national sovereignty in an omnibus manner; especially in dealing with countries like China, known to possess an absolute state status on their institutions and corporations.
“However, the immunity clauses in most of these agreements before us are not only ambiguous but very obscure. And without recourse to the fact that Nigerian government had issued circular on the subject matter with reference number SGF/OP/S.3/X/1737 dated 11th August, 2014 that provided guideline on issues of waiver of sovereign immunity clause during loan and commercial agreements negotiations.
“We expected government officials negotiating and signing these loans to fully comply with this guideline and also ensure that the clauses are couched to clearly reflect same”.
Questioning the rationale behind accepting Hong Kong as arbitration centre for the Chinese loans secured by Nigeria, he said “arbitration centres for bilateral loan agreements are known to be generally on neutral grounds unlike what we have in most of the Nigeria/China agreements where Hong Kong that is also governed by China laws was designated as the Arbitration Centre.
“From our experience, the MDAs sign these commercial agreements in billions of dollars, then go to the President and Federal Executive Council for approval to execute, including securing loan facilities through Ministry of Finance and Debt Management Office (DMO) and then proceed to negotiate the terms of these loans before coming back to Mr. President who then writes the National Assembly asking for approval for billions of dollars to do projects without attaching the negotiated loan and commercial contracts agreement details.
“This approach is the reason we have government representatives signing empty pages of loan agreements repayment schedule and other key documents required for the loan agreements to become effective. We have commercial contracts signed in US dollars, while the loan agreements for the execution of the same contracts were signed in Chinese YUAN currency in Ministry of Communications and Digital Economy/Galaxy Backbone Limited.
“We have noticed from documents available to us that commercial contracts signed by federal ministry of transportation alone is over $33billion without any clear-cut financing arrangements. Most of these commercial contracts agreements didn’t also have local content clauses and more witnessed by none properly designated and authorized officials.
“There are observable issues relating to procurement process, evidence of 15% advanced payments, payment of management fees, drawdown process and remittances and a whole lot of other matters, which we are strongly poised to ask questions on and hopes to get honest answers that will fine tune the current process, plan for possible renegotiation of some these agreements in order serve Nigerians better.
While dismissing the claim of an existing $33billion contract signed by the ministry, Amaechi demanded evidence of the contract from the committee.
He said: “Mr. Chairman, if you say that the ministry has awarded a contract of $33billion, we would want to see it because the only contract Ministry of Transportation has awarded so far is $1.6billion for Lagos/Ibadan (rail project).
“The Implication of having a $33billion contract is that we will have a large number of workers. There is no $33billion contract in the ministry of contract. What we have is the $1.6billion contract awarded under President Buhari and $800million contract awarded under President Goodluck Jonathan. By the time, the contract signed under President Jonathan had been completed, 80 per cent and so, we didn’t have to do anything about local content or no local content.
“The only one we had to deal with the issue of local content which is the only contract we have for now is the $1.6billion contract awarded from Lagos to Ibadan of which the Chinese government is providing $1.2 and we are providing the remaining $400million. There are over 20,000 workers on that project with only 560 of them being Chinese. We need to begin to say truth to Nigerians.”
Amaechi told the committee that the Lagos/Calabar rail line will not be possible because the House is probing the loan which has not been secured for the project, adding that at the moment, there is no contract because there was no loan.
However, as the interaction began to degenerate into an altercation between the minister and the Chairman of the Committee, the Speaker walked in unannounced and asked that the hearing be adjourned for 10 minutes.
Ossai demanded comprehensive explanation from the minister on the various loans taken by the government insisting that it was immaterial whether the loan was taken by the APC government or the PDP government, adding that what was important was that the interest of Nigeria and future generation of Nigerians was at stake.
The five students of the Rivers State University (RSU), Emohua satellite campus in Emohua Local Government Area of the state who were recently kidnapped, have regained freedom from their captors.
The students spent three days in the hands of their abductors before being rescued through the combined efforts of the police and other security agents in the state.
In a statement by the police spokesperson in the state, SP Grace Iringe-Koko, yesterday, the police rescued the five students unhurt from their abductors at the early hours of yesterday.
The statement listed the rescued victims as: Prince London ‘M’, Azubuike Kelechukwu ‘M’, Elizabeth Aniete ‘F’, Onyebuchi Precious ‘M’, and London Sampson ‘M’.
The police further disclosed that the victims had been taken to the hospital for medical examination, while efforts are ongoing to track down and arrest the fleeing cultists/abductors.
According to the police, the students were abducted by yet-to-be-identified cultists from their isolated residences but were later rescued unhurt.
The statement read in part; “The rescue operation was conducted at Rumudogo 2 Community in Emuoha Local Government Area of Rivers State by the Command’s Tactical Teams, in collaboration with other sister security agencies and with the support of the community.”
The Commissioner of Police, CP Olugbenga Adepoju, warned the perpetrators that the police would not relent until all those involved are apprehended and made to face the full wrath of the law.
He also urged continued collaboration from sister security agencies, community stakeholders, and the general public to enhance policing efforts across the State.
Adepoju also advised residents to go about their lawful activities without fear, assuring them that “their safety is our priority.”
Meanwhile, the authorities of the university have suspended academic activities in the Emohua campus following persistent security challenges in the area.
The Vice-Chancellor of the university, Prof. Isaac Zeb-Obipi, disclosed this while addressing students of Emohua campus following the kidnapping of the five students on Tuesday morning.
The students had, among other demands, urged the school authority to suspend all academic activities in the campus and relocate them to the main campus.
However, the Chairman of Emohua Local Government Council, Dr. Chidi Lloyd, has appealed to the management of the university not to shut down the Emohua Campus, promising to provide the necessary logistics to strengthen security of lives and property within the institution.
Akujobi Amadi & King Onunwor
The Nigerian Navy has begun free medical screening, diagnosis, and treatment for no fewer than 2,000 residents in Rivers.
Rear Adm. Ebiobowei Zipele, the Flag Officer Commanding, Naval Training Command (NAVTRAC), announced this on Thursday at the opening of the outreach in Egberu, Oyibo Local Government Area of Rivers.
Zipele said that the beneficiaries would have the opportunity to undergo medical diagnosis and treatment without costs.
“The naval training command is offering free medical support to residents of Egberu, this is as part of our efforts to strengthen cooperation between the command and the community,” he said.
He said that residents would receive free medical services such as blood pressure checks, consultancies, laboratory investigations and medications, among others.
“This exercise is one of the strategic initiatives of the Chief of Naval Staff, Vice Adm. Idi Abbas, under navy’s corporate social responsibility,” he said.
Zipele further said that the exercise formed part of the navy’s end-of-year activities that aimed to strengthen civil-military relations.
He reiterated the navy’s commitment to providing essential services to residents of Egberu community.
Also speaking, Capt. Ikechukwu Chukwuka, the Head, Medical and Training, said that the outreach included screening for blood pressure, blood sugar, malaria, typhoid and HIV.
Chukwuka said that the beneficiaries would receive free medications and advice, adding, “serious conditions will be referred to the appropriate medical facilities”
“We recognise the challenges many communities face in accessing quality healthcare, we are here to support this community,” he said.
Chukwuka said that many individuals were unaware of the illnesses that plagued them until they became life-threatening.
“We are targeting no fewer than 2,000 people to take advantage of this opportunity to know their health status and receive free treatments,” he said.
He said that the programme showed that the navy was not only a combat institution but also a compassionate and people-oriented one.
Dr Adaeze Oreh, the Rivers Commissioner of Health, commended the navy for the gesture, describing it as well-intended.
Represented by Prof. Justina Jumbo, the Permanent Secretary, Rivers State Ministry of Health, Oreh said that the initiative aligned with the state government’s commitment to strengthen public health systems.
“Healthcare is most impactful when government and security agencies work together to support vulnerable populations,” she said.
She said that the Rivers Government remained open to deeper collaboration with stakeholders on outreach, disease prevention, emergency care and community health strengthening.
The Paramount Ruler of Egberu-Ndoki, Eze Boniface Akawor, expressed delight over NAVTRAC’s relocation from Apapa, Lagos, to Ebubu-Eleme in May 2024.
He said that the community had never benefitted from such free medical support, and decried the abandonment of the community primary healthcare centre.
“The nearest health centre is seven kilometres from here, this makes emergencies difficult for our people,” he said.
Akawor thanked the navy for the intervention, and urged other corporate bodies to emulate NAVTRAC.
One the beneficiaries, Mrs Cordelia Chibuzor, 58, who received treatment for an undisclosed ailment, praised the navy for the support.
She said that many residents could no longer afford healthcare due to the rising costs of medical treatments in the country.
The Mayor of Housing, My-ACE China, has alerted the Governor of Rivers, Akwa Ibom, and Abia states to what he calls an emerging ‘Economic Triangle’ within their states.
Mr China, a real estate success strategist who has won numerous local and international awards, has thus drawn the attention of the governors of the concerned states to the emerging development and has urged them to intentionally accelerate the emergence of the economic triangle.
Speaking to newsmen in Uyo, Akwa Ibom State capital at the conclusion of his business trip to the state, Mr China, who is the managing director of the Housing and Construction Mayor Limited, said the envisaged economic corridor would compete favourably with the Lagos economic hub or even better.
He said: “Talking about ‘Economic Triangle’, the only place that can wrest economic power from Lagos is Akwa Ibom, Abia, and Rivers states axis or corridor. This corridor contains more than Lagos has, if they can be interconnected with smooth roads, ports, and if their blue potentials are unlocked. They will not only wrest power from Lagos but would be more lucrative.”
The investor who is behind the emerging Alesa Highlands Green Smart City in Eleme, near Port Harcourt, said the new ‘Economic Triangle’ has a bigger potential due to massive land assets with the corridor plus blue economy and the existing hydrocarbon industry.
Explaining, Mayor of Housing said Aba (Abia State) provides the biggest fabrication capacity in West Africa to supply goods to the Gulf of Guinea; Port Harcourt provides access to the Gulf of Guinea for off-taking Aba products, and the Uyo provides deep sea port at Ibaka and international airport facilities as well as forest reserves for massive agro-economy.
He said with sea ports in Rivers State and deep seaport in Akwa Ibom, and international airports in Rivers and Akwa Ibom, Aba can focus on adequate power supply and fabrication boom to supply a new booming market around the economic triangle.
By doing this, he said, jobs would spill out in huge quantities and more manufacturers would be drawn from all over Africa to boost the fast coming African Continental Free Trade Agreement (AfCFTA). He said Nigeria would thus have two major trade nodes in West Africa; Lagos and the PH/UYO/Aba triangle.
He said goods going to or coming from Chad, Niger, and the rest of Central Africa can head to the Lagos ports or to the Ibaka/PH ports zone in the new economic triangle.
He said with power supply made stable, good roads, excellent security system, and ease of doing business enthroned in the zone, the South-South and South East would become the biggest economic nerve in the near future.
Mayor of Housing called on governors of the three states to be intentional about the new corridor, put away political differences (if any), and create this corridor by agreeing on projects each state would execute with a short period of time so the states would be linked by good roads, communication, security, trade laws, concessions to investors, etc.
He remarked that northerners were already heading to the Onne Port in Rivers State to export goods, saying creating a commission to oversee the development of the ‘Economic Triangle’ would fast-track its emergence.
He observed that people of the three states are peaceful and usually preoccupied with zeal for economic prosperity, saying that if they are linked to such huge opportunities staring at them in the emerging economic triangle, they would totally shun violence and focus on prosperity.
Mr China insisted that the emerging economic triangle would form a big node not only into the Gulf of Guinea economic zone but into Africa because AfCFTA is about production, certification, market availability, and easy transport nodes by sea and air. He said the new economic triangle boasts of all the factors.
“They can only realise this by working together, through collaboration. One state cannot do it but a triangle of the three will create it through seamless interconnection, ports, industrial park, etc. The people will be the richest and internally generated revenue (IGR) will be the biggest in the country,” he said.
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