Ned Nwoko Cautions Nigeria Against Neo-Colonialist Loans

A former member of the House of Representatives, Hon. Ned Nwoko, has warned the Nigerian government about the neo-colonialist push of China, which is fast emerging as the Eastern superpower. Prince Nwoko gave the warning in Ibadan while delivering the 2019 National Public Service Lecture organized by the Alumni Association of the University of Ibadan on Friday.

In the lecture, titled “Towards Efficient Management of Nigeria’s Foreign Loans”, Nwoko averred that the improper utilization of foreign loans is one of the major factors that make repayment of debts a herculean task. He went on to caution that “in avoiding or being cautious over loans with harsh conditionality from powerful Western cartels, Nigeria should equally be wary of the neo-colonialist push of the emerging Eastern superpower, China”.

He noted that when China gives loans, they are usually tied to projects, in the execution of which the recipient countries are often compelled to use materials, consultants and workers recommended or provided by the creditor country. He disclosed that a very large chunk of the ‘concessional funds’ released is thus ploughed back to the creditor country.

Giving tips on how to effectively manage loans, Nwoko recommended that loans should be properly negotiated and secured on favourable terms and conditions. He also advised that all necessary agreements should be signed, properly documented, catalogued and preserved for future references.  “Foreign debts should be contracted only when they become absolutely necessary. It is not enough to join the fray simply because other countries are taking loans”.

Speaking on how he became famous for the Paris Club refunds, Nwoko, who was the Best Black Lawyer in England in 1995, disclosed that he met three Nigerian Governors, Boni Haruna, Jolly Nyame and Abdulkadir Kure of Adamawa, Taraba and Niger respectively in London in 2002 and they gave him authority and support to commence what eventually became known as the London and Paris Club refunds. He said the then Governor of Adamawa State complained that out of the N 3 billion that almost N 1 billion was being taken by the Federal Government in the name of servicing foreign loans.

It however turned out that the team of experts put up by Nwoko discovered that the loans had long been repaid and the President, Chief Olusegun Obasanjo ordered that deductions be stopped. ‘After that was done, many states came to me to help them get their refunds”, the former lawmaker stated.

In his opening remarks, the Vice Chancellor of the University of Ibadan, Professor Abel Idowu Olayinka noted that the effective management of Nigeria’s foreign loans has become a necessity because “for every dollar Nigeria takes as loan, 60 cents will go back out of the country through corruption”. While stating that taking loans is not a bad idea, the Vice Chancellor posited that what one does with the loan is what matters.

 The Governor of Oyo State, Engr. Seyi Makinde was represented at the lecture, held at the Alumni Centre of the University of Ibadan by Hon. Olawale Mojeed Mogbonjubola, his Deputy Chief of Staff. Dr. Michael Nwoko, the Senior Special Assistant to the Governor of Delta State on Health Monitoring, former British international, John Fashanu, Professor Elsie Adewoye, the President of the University of Ibadan Alumni Association, Chief Bayo Oyero as well as the Deputy Vice Chancellor of the University of Ibadan, Professor Kayode Adebowale were in attendance.