Tuesday, Sep 22nd 2020 6:26 PM

Market Digest Nigeria


Group urges Chinese bank, DMO, National Assembly to stop Ganduje’s N299b loan request

Governor Abdullahi Ganduje

Kwankwasiyya Movement has petitioned the Chinese Development Bank, Senate President Ahmed Lawan, and Minister of Finance, Zainab Ahmed, to block €684 loan request by Governor Abdullahi Ganduje of Kano State, an equivalent of about N300 billion, intended to finance light rail project.

Governor Abdullahi Ganduje

The group Spokesperson, Comrade Aminu Abdulsalam, who addressed newsmen yesterday in Abuja, described the request as ill-conceived, noting that the planned borrowing “negates the thoughts and perception of the good people of Kano State especially.”

He also, lambasted the state House of Assembly dominated by members from the All Progressive Congress (APC) for giving a blanket approval without recourse to the plights of the people especially during the COVID-19 era.

He said: “It has come to our notice that, Kano State Government under the leadership of Dr. Abdullahi Umar Ganduje is once again in the process of renewing its effort of contracting a loan facility to the tune of Six hundred and eighty four million One hundred thousand One hundred Euros (€684,100,100.00) from China Development Bank for financing of Light Rail Project in the State.

“The total adjusted loan facility is equivalent to N299, 533,228, 785.00 at the Central Bank of Nigeria official exchange rate and N339, 313,649,600.00 at the current parallel market exchange rate of N469.00 to one Dollar.

“The proposed borrowing is also equivalent to about 15 years of the total internally generated revenue of the state and more than two years of its budgetary allocation.

“We wish to inform the good people of Kano State that the National Kwankwasiyya Movement, Kano State chapter has already contacted the Chinese Development Bank, via a petition in respect of the illegality and crass procedural violations by the state government (both the executive and the legislature);

“The attention of the Chinese embassy in Nigeria has been drawn to the risks of the proposed transaction with Ganduje;

“The president of the Senate, the Hon. Minister of Finance and the Director General of the Debt Management Office (DMO) were all written to, protesting against the proposed enslavement of the people of Kano State; and

“On our instructions, our lawyers have already instituted a case in court challenging both the legitimacy and the procedural violations associated with the proposed loan.

“The proposed project is conceived without due cognizance of the technical and other financial requirement as encapsulated in the country’s procurement law.”

The deputy governorship candidate in the 2019 poll in Kano State, said Ganduje should take a queue from the last administration that allowed “borrowing when it is extremely necessary and on critical programs or projects.

“It is on record that we inherited the sum of 200 million USD as Loan for the purchase of mosquito nets under the roll back malaria program which was contracted between 2004 to 2010, but luckily for our state, we followed due process and exited from the loans component and subsequently our government further engaged in meaningful projects that at the long run eradicate the menace of malaria in the state.”

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top
Get the best of Market Digest Nigeria financial news
delivered to your inbox daily!
By clicking Give it a try, I hereby: Agree and Consent to the Terms of Use and the Privacy Policy
& I may receive free newsletters & promotions from this site and can choose to unsubscribe anytime.