Mr. Femi Falana (SAN), has written to the Federal Government warning against obtaining loan from the World Bank to finance the 2016 budget. According to the Lagos based Lawyer, hapless Nigerian people should not be made to pay for the gross mismanagement of the national economy by the Federal Government and the profligacy of the pampered members of the ruling class through constant borrowing by the government. INFORMATION NIGERIA brings you 7 reasons Mr. Falana advocated in support of his point in his letter to the Minister of Finance, Mrs. Kemi Adeosun, on Friday…
– Mr Falana believes that there was no need for president Buhari to obtain $3.5bn loan to finance the budget when the Federal Government could recover about $66.5bn it was being owed.
– He stated that loans taken from the World bank required the endorsement of the International Monetary Fund, which he said, usually imposed stringent conditions on borrowing countries.
– Mr Falana added also that the debt profile of the country had now grown to $64bn after it took much effort in 2005 for the country to exit the London/Paris Club after struggling to repay a loan of $12.4bn.
– Falana reminded the government that there was about $11bn which the Central Bank of Nigeria injected into the banking industry between 2006 and 2008 as bailout to commercial banks, which had yet to be recovered.
– Falana also recalled that the Federal Government had on September 6, 2015 announced that the management of the Nigerian National Petroleum Corporation was in the process of recovering the sum of $9.6bn in “over deducted tax benefits from joint venture partners on major capital projects and the legacy OPA/SWAP oil contracts.
– He further made reference to the $750m of the late Gen. Sani Abacha’s loot, which the Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami (SAN), said arrangements had been concluded on it to recover.
– He also recalled that the recent probe by the Senate revealed that the Asset Management Corporation of Nigeria had accumulated about $25bn which, according to AMCON’s Managing Director, Ahmed Kuru, was owed by “big men who fly in private jets, live in big mansions and they have taken money and they are not paying back.
Do you agree with Mr. Falana that Nigeria should not take the loan???