On Friday, August 16, Nigerian activist, Madubuachi Idam, asked the National Assembly to draw up legislation that would regulate the international debt of states in Nigeria.
Idam said the seizure of Nigeria’s presidential jets in France by a Chinese company should be an eye-opener for the National Assembly to act accordingly.
He noted that the legislation must not only regulate International debts owed by state governments in Nigeria but also make provision for security executed in favour of the federal government to enable it to liquidate such debt in some situations.
Speaking with Daily Post, the activist lawyer said debts of states can also be tied to their monthly allocation payable to such states.
It was learnt that an independent arbitral tribunal, chaired by the former President of the UK Supreme Court had ordered the seizure of some Nigerian presidential jets.
This followed a move by the Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to seize the jets undergoing routine maintenance in France.
The company moved for seizure due to the failure of the Ogun State government’s failure to honour a $74.5 million award.
But, the Presidency on Thursday said it is aware of the development, describing it as failed attempts by Zhongshan to take over offshore assets of the Federal Government of Nigeria through subterfuge.
However, Idam said: “Anyone who means well for Nigeria should graciously pray for her. This is not a good time for the giant of Africa.
“The news making the rounds has it that a French court has ruled in favour of a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, and granted the seizure of three presidential jets belonging to the Nigerian government.
“The court allowed the company to seize three presidential jets on routine maintenance in France as “security” for claims in a matter between the foreign company and the Ogun State government.
“I will not reprove the Chinese company as it has acted like every creditor anywhere in the world, who must recover his debt one way or the other. However, the National Assembly must consider this obvious International embarrassment as an eye opener and quickly fashion legislation that will aim at regulating every International debt owed state in Nigeria, whether arising from simple contracts or as an international loan.
“The legislation must not only regulate International debts owed by state governments in Nigeria but there must be security executed in in favour of the federal government to enable it to liquidate such debt in situations like this to save face or better still tie such debt to the monthly allocation payable to such state, provided that henceforth, no state shall maintain an International debt higher than its entitled federal allocation per month.
“No state must be allowed to once again bring shame to the Federal Government.”
