Ekiti state governor Ayo Fayose has threatened to sue the federal government of Nigeria over plans to borrow $1bn in Eurobonds.
Fayose says President Buhari’s government is being secretive over the details of the $1bn Eurobond.
The Cable reports that Fayose, who compared the All Progressives Congress (APC) to the “biblical prodigal son”, expressing grave concerns over the move by the President Muhammadu Buhari-led administration.
He noted that the deal could plunge the country into more economic crisis rather than lift it out of recession.
READ ALSO: Osinbajo, Wike in brief meeting at Port Harcourt Airport
Speaking through a statement issued by Idowu Adelusi, his chief press secretary, Fayose called for more clarification on the beneficiaries of the bond even as he accused the federal government of undue secrecy in the matter.
The statement read: “It is a prodigal government who wants to destroy this country. The rate at which it is taking loans, which would keep this country indebted till 2032, is quite unfortunate.
“The federal government is just one of the federating units making up Nigeria and revenues accruing to the country cannot be used to repay bond taken by the federal government for its own use alone.”
“Is the payment going to be made by direct deductions from Nigeria’s crude oil sales or from federal government’s share from the federation account?
“If it is going to be made directly from proceeds of crude oil accruing to Nigeria as a country, then the bond belongs to the federal, state and local governments and not the federal government alone.
PAY ATTENTION: Get the latest news on ZENITHBLOG.com News App
“So, we have to find out and take steps. The federal government should bring the money and we share it; we take our percentage and it takes its own. The federal government cannot take that money and deduct from source and tell us that the money, which belongs to all federating units, is for it alone.
“We will definitely go to court and ask questions.”
Recall that on Thursday, February 9, the government issued $1 billion Eurobond, bearing an interest rate of 7.875% and its proceeds are to fund capital expenditures in the 2017 budget. It will mature on February 16, 2032.
0naze
No comments:
Post a Comment