The President, Major General Muhammadu Buhari (retd), and his administration have been ordered by an Abuja Federal High Court to give explanations for how a $460 million Chinese loan was used to finance the abandoned Abuja Closed-Circuit Television project.
The ruling of the court mandates that the regime publish the total sum of money paid to Chinese and local businesses and contractors, as well as precise information about their identities and the project’s current status of implementation.
The instructions were given by Hon. Judge Emeka Nwite in his decision in the FHC/ABJ/CS/1447/2019 Freedom of Information lawsuit brought by the Socio-Economic Rights and Accountability Project.
The lawsuit came after the Minister of Finance, Zainab Ahmed, stated in 2019 that “Nigeria was servicing the loan,” adding that she had “no explanations on the status of the project.” We are servicing the loan, she allegedly said. Regarding the CCTV project’s status, I am clueless.
According to Justice Nwite’s ruling, “there is a reasonable cause of action against the government,” in agreement with SERAP. It is in the best interest of the general public to account for how the $460 million Chinese loan was used. The court’s decision to deny SERAP’s request for judicial review of the government’s action will be detrimental.
The Minister of Finance, who oversees the nation’s finances, “cannot by any stretch of the imagination be oblivious to the amount of money paid to the contractors for the Abuja CCTV contract and the money intended for the construction of the Headquarters of the Code of Conduct Bureau,” added Justice Nwite.
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Additionally, he commanded the government “to provide the details clarifying whether the sum of N1.5 billion paid for the failed contract meant to construct the headquarters of the Code of Conduct Bureau was part of another loan obtained from China.”
According to Justice Nwite’s ruling, SERAP’s primary goals are to advance human rights, accountability, transparency, and anti-corruption in Nigeria.
“I hold that SERAP has made out a case to be entitled to the reliefs sought. I am of the humble opinion that there is a reasonable cause of action against the government [through the Minister of Finance].
“It is well established law that when a letter or document is sent by mail, it is assumed that it has been delivered.
“Following this rule of law, SERAP’s Freedom of Information request sent to Ms. Ahmed is deemed to have been delivered, relying on exhibit OS2. The government’s claim that they weren’t served with the letter, made through her, is thus refuted. I firmly hold.
Ms. Ahmed and the Minister of Police Affairs have joined the list of defendants in the lawsuit.
An order of mandamus is hereby made directing and compelling the government [through the Minister of Finance] to provide and make available to SERAP information on the total amount of money paid to contractors, with specific details of names of companies local contractors involved, from the $460 million loan obtained in 2010 from China by the Federal Government of Nigeria to fund the failure.
“An order of mandamus is hereby made directing and compelling the government [through the Minister of Finance] to disclose information regarding the local businesses and Chinese contractors who have received funds from the $460 million loan for the financing of the Abuja CCTV contract, as well as information regarding the status of the project’s implementation.
“An order of mandamus is hereby made compelling the government [through the Minister of Finance] to explain whether the N1.5 billion mobilization fee reportedly paid to the contractors for the construction of the Headquarters of the Code of Conduct Bureau in Abuja was a component of another loan from China. This represents the court’s decision.
“The onus is now on President Buhari to immediately comply with the court’s orders,” said SERAP deputy director Kolawole Oluwadare. We applaud Justice Nwite for his bravery and discernment and implore President Buhari, Attorney-General of the Federation, and Minister of Justice Abubakar Malami to immediately comply with the court’s orders.
“This is a win for accountability, transparency, the rule of law, and justice. The verdict demonstrates how to move forward in the struggle against corruption and the impunity of offenders. We will take all legal measures necessary to ensure that President Buhari complies fully with this historic ruling regarding Chinese loans.
“We urge President Buhari to publish information on how all Chinese loans and other loans received by his administration since May 2015 were spent in light of the judgment.”
According to data from the Debt Management Office, Nigeria’s total borrowing from China increased from $1.39 billion to $4.29 billion between June 2015 and December 2022.
According to the Nigerian government’s 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper, the Federal Government will spend nearly 74.6% of its anticipated N6.31 trillion in revenue in 2023 on debt repayment.
China could seize significant national assets from Nigeria if it doesn’t pay back loans that it received from that country.
A report claims that Nigeria may not have repaid its debt to China and could face an N41.31 billion fine. The Debt Management Office, which was quoted in the article, claimed that the debt Nigeria owes China, which has increased to N110.31 billion over the past two years, has not been properly serviced.
Remember that SERAP sued Ms. Ahmed in December 2019 for failing to “disclose information and specific documents on the total amount of money paid to contractors from the $460 million loan obtained in 2010 from China to fund the apparently unsuccessful Abuja CCTV project”
A portion of the lawsuit’s suit number stated: “Servicing Chinese loans for failed projects is double jeopardy for Nigerians—they cannot see or benefit from the projects, yet they are required to pay both the loans and the accrued interest.”
“The N1.5 billion loan for the construction of the CCB headquarters, which may be a portion of another Chinese loan, and the $460 million loan obtained for the failed Abuja CCTV project, may have been mismanaged or stolen, but in any case, remain unaccounted for.”
“Transparency in the use of Chinese loans is good for everyone because it will increase the legitimacy, effectiveness, and contribution of the loans to the growth of public goods and services, as well as the interests of the general public.”
The requested information does not fall under the categories of data covered by the Act’s exemptions from disclosure. The Respondent’s refusal to give SERAP the requested information is not supported by any legitimate legal grounds.
Government secrecy is a barrier to the growth of democracy. The public has a right to know how the commonwealth is utilized, run, and governed in a democratic environment.
