$1bn Eurobond: Fayose Knocks FG, Seeks Explanations on Beneficiaries, Repayment


Governor of Ekiti State and Chairman of the Peoples’ Democratic Party (PDP)
Governors’ Forum, Mr. Ayodele Fayose has described the Federal Government’s
plan to secure Eurobond which re-payment would last till 2032,  as act like
that of the Biblical prodigal son, expressing the fear that the loan may
plunge the nation into pro-longed economic misery.

The governor, who challenged the federal to government make clarification
as to the beneficiaries of the bond, stating whether it would be both the
federal government and the federating units or federal government alone,
added that; “questions must also be asked on repayment of the Eurobond
because deductions from what should accrue to the federation account on a
bond to be taken by the federal government for its own use only.”

In a statement issued on Friday, by his Chief Press Secretary, Idowu
Adelusi, the governor said; “What I’m even worried about and which they
must explain to us is that you cannot get a bond without committing it to
the source.

“Is the repayment going to be made by direct deductions from Nigeria’s
crude oil sales or from federal government share from the federation

“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 federal government alone.

“The federal government is just one of the federating units making up
Nigeria and revenue accruing to the country cannot be used to repay bond
taken by the federal government for its own use alone.

“The federal government must therefore tell Nigerians how it intends to
repay the facility from now till 2032. If it is going to be through direct
deductions from revenue accruing to Nigeria, such that money would be taken
from source which would not be part of the accruers to the central body, it
means the $1 billion bond belongs to Nigerians and it must be shared among
the federating units.

“So, we have to find out and take steps. It is either they bring the money
and we share it; we take our percentage and they take theirs. The federal
government cannot take that money and take it from source and tell us that
the money, which belongs to all of us federating units, is its.”

Speaking further, Governor Fayose said; “Fiscal federalism is not
manifesting in the agenda of this government. The way they are running the
affairs of this country is shrouded in secrecy.
We will definitely go to Court and ask questions.”

Expressing the fear that the $1 billion Eurobond may plunge the nation into
more seriuos economic woes as its repayment was sheduled to last till 2032.
Fayose said: “the APC government is behaving like the prodigal son who
asked for his inheritance and spend it lavishly.

“It is a prodigal government who wants to destroy this country. The rate at
which they are taking loans which would keep this country indebted till
2032 is quite unfortunate.

“Currently our currency has been badly devalued to N500 to a Dollar. So,
how do we pay back the Dollar? They went to tie the money to the source;
the accruers outside the country where crude oil revenue goes.

“Apparently, they don’t care what happens tomorrow. They said they want to
use the money to fund 2016, 2017, 2018 budgets which means after they are
gone, the country can go into blazes and our children’s children can wallop
in indebtedness. How can you appreciate that?

“This rate of borrowing would lead this country into serious challenge.
At this same time, they are saying we should save for the raining day. I
just want our people to know that the APC government is taking us to
another side of life, one is to destroy our economy, the other is death.”