Connect with us

Hi, what are you looking for?


Drama as Reps Continue Probe of Chinese Loans, Uncover $33 Billion Contract Without Clear Cut Terms

The House of Representatives said on Monday that Nigerian government officials signed empty repayment loan documents for the development of the Nigeria Rail sector even before the terms of the loans were negotiated.

The House also said that it discovered that the Ministry of Transportation signed a commercial contract worth $33 billion dollars without any clear cut financial arrangement while most of the contracts agreement did not have local content clauses

Chairman, House Committee on Treaties, Protocols and Agreements, Hon. Ossai Nicholas Ossai disclosed this during the resumed investigative hearing on the review of bilateral loan agreements and commercial contracts agreements by Ministries, Departments and Agencies (MDAs) also said that some of the loans collected by the government were signed even before the terms were negotiated.

But the Minister of Transportation, Rotimi Amaechi said there was such contract existing in the Ministry as the only contract was the $1.6 billion loan for the Lagos/Ibadan rail project signed by the Buhari government and the about $800 million dollars loan signed by the Jonathan government.

He challenged the Committee to furnish his Ministry with details of the contract to enable them make necessary response.

Hon. Ossai, who frowned at the misconceptions and misgivings on the ongoing legislative scrutiny of various agreements, alleged that public officials’ response for the facility are only desperate to obtain the loan without proper scrutiny of the agreements.

He said “we have also noted comments on the facts that National Assembly approved these loans, so why turn around to probe it now? Well, I remember stating in our last meeting here, that executive scrutiny and oversight by the legislature on government policies, programmes and projects can be done at the beginning, during implementation and at the end of implementation.

“From our experience, the MDAs sign these commercial agreements in billions of dollars, then go 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 agreements 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 also seen references made in the commercial contracts regarding BOQs but none of‘ the commercial, contracts agreements submitted to us especially by Ministry of Transport has a single BOQ attachment.

He said further: “We have noticed from documents available to us that commercial contracts process signed by Federal Ministry of Transport alone within this is over $33 billion without any clear cut financing arrangements. Most of these commercial contracts agreements didn’t also have local content clauses and we’re witnessed by none properly designated and authorized officials.

“There are observable issues relating to procurement process, evidences of 15% advanced payments, payment of management fees, draw down process and remittances and a whole lot of other matters, which we are strongly poised to ask questions on and hope to get honest answers that will finer tune the current process, plan for possible negotiation of some these governments in order to serve Nigerians better.”


Follow us on Twitter at @thesignalng

Copyright 2020 SIGNAL. Permission to use portions of this article is granted provided appropriate credits are given to and other relevant sources.

Click to comment

Leave a Reply

Your email address will not be published.


Signal-Tesslo Ad



The House of Representatives has berated the President of the Academic Staff Union of Universities, Prof Emmanuel Osodeke, over his claim that the Speaker,...


Governor Nyesom Wike of Rivers State on Saturday criticised his predecessor, Rotimi Amaechi over the delivery projects in the oil-rich South-South state, Channels Television...


The Academic Staff Union of Universities yesterday opposed the Students’ Loan Bill sponsored by the speaker of the House of Representatives, Femi Gbajabiamila, Daily...


Speaker of the House of Representatives, Femi Gbajabiamila, has asked Nigerian students to fully participate in the 2023 elections by voting for candidates based...

Copyright ©