Justice Nwite ruled in favor of SERAP and stated that “there is a reasonable cause of action against the government.”
President Muhammadu Buhari’s administration has been told to “account for the spending of $460 million Chinese loan to fund the failed Abuja Closed-Circuit Television (CCTV) project” by a Federal High Court in Abuja.
Additionally, the government was mandated by the court to “publish the total amount of money paid to Chinese and local companies and contractors, specific details, and the implementation of the project.”
In his ruling in the Socio-Economic Rights and Accountability Project (SERAP)’s FHC/ABJ/CS/1447/2019 Freedom of Information lawsuit, Hon. Justice Emeka Nwite issued the directives.
This was said in a statement released on Sunday by the Socio-Economic Rights and Accountability Project (SERAP), which was written and signed by Kolawole Oluwadare, the project’s deputy director.
In 2019, Nigeria was servicing the loan, the statement claims, adding that Zainab Ahmed, the minister of finance, had “no explanations on the status of the project.” This led to the lawsuit, the statement claims. 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. The public is interested in knowing how the $460 million Chinese loan was used. Rejecting SERAP’s request for judicial review of the government’s action will be detrimental to the case.
Justice Nwite added, “The Minister of Finance is in charge of the country’s finances and cannot under any circumstances be thought to be unaware of the sums paid to the contractors for the Abuja CCTV contract and the sums intended for the construction of the Code of Conduct Bureau (CCB) headquarters.
Additionally, Justice Nwite instructed the government “to provide the details clarifying whether the sum of N1.5 billion Naira paid for the failed contract meant to construct the Code of Conduct Bureau (CCB) headquarters was part of another loan obtained from China.”
The following is an excerpt from Justice Nwite’s ruling: “SERAP’s core objectives are to promote human rights, transparency and accountability, and anti-corruption in Nigeria.”
“I hold that SERAP has put out a case to be entitled to the reliefs sought. I am of the modest 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 made to Ms. Ahmed is found to have been delivered, relying on exhibit OS2. The government’s claim that they weren’t served with the letter, made through her, is therefore refuted. I firmly hold.
Ms. Ahmed and the Minister of Police Affairs have joined the list of defendants in the lawsuit.
The following mandamus orders were issued by Justice Nwite against the Nigerian government:
The Federal Government of Nigeria obtained a $460 million loan from China in 2010 to finance the failed Abuja CCTV contract. This order of mandamus directs and compel 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.
The government [through the Minister of Finance] is hereby directed and compelled by an order of mandamus to disclose the names of the local businesses and Chinese contractors who received funding from the $460 million loan for the financing of the Abuja CCTV contract, as well as information about the project’s status of implementation.
The government [through the Minister of Finance] is hereby directed and compelled to provide information establishing whether the sum of N1.5 billion Naira 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.
“President Buhari must now promptly abide by the court’s directions. We applaud Justice Nwite for his bravery and discernment, and we implore President Buhari, Attorney-General of the Federation Abubakar Malami, and Minister of Justice to quickly comply with the court’s instructions, according to the deputy director of SERAP.
“This is a win for accountability, openness, 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 request that President Buhari use the ruling as the foundation for revealing information about how all Chinese loans and other loans that his government has taken since May 2015 have been spent.
Data from the Debt Management Office (DMO) show that between June 2015 and December 2022, Nigeria’s total borrowing from China increased from $1.39 billion to $4.29 billion.
The federal government will spend nearly 74.6% of its anticipated revenue of 8.46 trillion in 2023—or N6.31 trillion—on debt payment, according to the Nigerian government’s 2023–2025 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
If Nigeria doesn’t repay loans it received from China, China could seize important national assets from it.
According to a report, Nigeria may not have paid back its debt to China and may be subject to a penalty of N41.31 billion. The debt Nigeria owes China, which has grown to N110.31 billion over the past two years, has not been properly serviced, according to the Debt Management Office (DMO), which was quoted in the story.
You may recall 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 ostensibly 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 abandoned Abuja CCTV project were both perhaps mismanaged or stolen, and in any event, they are still unaccounted for.
“Transparency in Chinese loan expenditure benefits everyone because it increases the loans’ efficiency, legality, and support to the growth of public goods and services and 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 required information is not supported by any legitimate legal justification.
Government secrecy is a barrier to the growth of democracy. The public has a right to know how the commonwealth is used, run, and governed in a democratic environment.
