$1bn Eurobond: Fayose Knocks FG

Governor of Ekiti State and Chairman of the Peoples’ Democratic Party (PDP) Governors’ Forum, Mr. Ayodele Fayose has knocked the federal Government over plans to secure a $1b Eurobond.

He expressed fear that the $1 billion Eurobond may plunge the nation into more serious economic woes as its repayment, which is scheduled to last till 2032, is being taken at a rate that “would keep the country indebted till 2032”.

Chief Press Secretary to the governor, Idowu Adelusi, issued a statement at the weekend.

According to it, Fayose said: “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; what accrues 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?

The governor urged the federal government to clarify the beneficiaries of the bond, whether it would be both the federal government and the federating units or federal government alone,

“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.” He asked, adding,

“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 what accrues 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 or 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 it’s alone.”

He 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.”