Daily Independent Online.
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Thursday, August 05, 2004.
Senate queries N7 billion loan to Ghana,
Sao Tome
• Northern senators oppose N25b banks’
capital base
By Adetutu
Folasade-Koyi
and Chesa Chesa
National
Assembly
Correspondents, Abuja
Senators on Wednesday
queried President Olusegun Obasanjo’s grant of $54 million (N7.56
billion) to Ghana and Sao Tome and Principe without the approval of the
National Assembly.
Consequent upon the
argument of Senator Victor Ndoma-Egba, conferred with the title of Senior
Advocate of Nigeria (SAN) three days ago, the lawmakers mandated their
Committees on Judiciary and Foreign Affairs to consider the constitutionality
of the action and report back to the Senate.
That was not the only
money matter senators discussed on Wednesday.
Rising from a crucial
meeting, Chairman of Northern Senators Forum (NSF) Senator Idris Kuta condemned
in strong terms, the proposed N25 billion banks’ capital base. He said
state banks stand no chance of survival under it.
Navy Committee
Chairman Mohammed Ohiare told newsmen that the Forum has engaged the services
of experts to advise it on the directive. Top on the agenda is how the new
directive would affect the status of Northern banks.
Last week, Aso Rock
wrote to inform the Senate of a $40 million loan to Ghana and another $5
million to Sao Tome and Principe.
Senate Leader Dalhatu
Tafida told his colleagues on Wednesday that the President’s letter
seeking understanding on the matter is “not quite clear, or rather,
ambiguous”.
His colleagues Baba
Tell, Abubakar Sodangi and Clement Awoyelu, countered that there was no need
for further debate on the issue since the loans had already been approved, but
Osierhmen Osunbor, a professor of
law, cited Section 164(2) of the Constitution which only empowers the
government to extend grants to foreign states in order to promote foreign
relations.
Ironically, he argued
that the matter be laid to rest as “the loan is fair”. Senator Uche
Chukwumerije disagreed and demanded that the loans be suspended outright.
Ndoma-Egba stressed that the issue
raised legal and legislative questions because the Constitution talks about
grants, not loans. He argued that in the absence of such constitutional
provision for loans to foreign governments, the President should have consulted
the National Assembly before the approval.
He implored his
colleagues to understand that the Senate should provide guidelines on how such
an assistance should be given, noting that even the Central Bank of Nigeria
(CBN) Act does not give it powers to grant loans to the government for onward
transmission to foreign states.
Ndoma-Egba suggested
that the Judiciary and Foreign Affairs Committees be mandated to restore the
questions raised.
Deputy Senate
President Ibrahim Mantu, who presided, ruled in favour of the new SAN as the
senators chorused “Aye.”
Speaking afterwards,
Ndoma-Egba insisted that the President’s action is unconstitutional and
that the National Assembly should have been consulted ab initio.
Said he:
“Nigeria is not a money lender. It is possibly the first loan ever that
Nigeria would be giving to another country. Since the Constitution does not
specify loans, it is absolutely necessary to bring in the National Assembly for
this kind of approval. It is unfortunate that we are being confronted with a
fait accompli”.
The meeting of
Northern senators in Abuja, same day, had in attendance Deputy Senate President
Ibrahim Mantu, Senate Leader Dalhatu Tafida, but they declined to brief newsmen
on it resolutions.
However, speaking in
his personal capacity, Kuta described the directive as high-handed.
His words: “It
is too high. I don’t support it. It is my personal opinion. First of all,
I operate a bank account and secondly, I am not only a customer of a bank, I am
also a shareholder. So, I know the intricacies of what goes on.
“I have been a
shareholder in the bank since 1981, with a capital base of N5 million. Now,
instead of allowing them to source for the N2 billion which was handed down to
them last year, it has been jerked up to N25 billion. This means that all other
banks, especially those established by states, will collapse”.
Apart from the Bank of
the North - owned by Northern states - Lobi, Inland, Lion and Habib Banks all have strong Northern
affinity.
Kuta dismissed reports
that Northern senators would rally support from their Southern counterparts.
“The Senate is
an explosive chamber, so, trying to divide the Senate on a Northern/Southern
axis is not possible. No particular issue which is based on ethnicity will
succeed in the Senate for now”.
His dismissal
notwithstanding, Ohiare confirmed that the NSF is also consulting with their
colleagues on the matter.
Said he: “We are
already consulting some experts. We believe that it is part of the wind that is
blowing now. Consultations are going on the matter. The NSF believes that if it
is part of the economic reform that will help the growth of this country, then,
we will welcome it.
“As I said, we
are consulting with other senators on this matter. We are reviewing the matter,
in terms of what government is thinking about in line with Northern banks. We
are consulting to know the economic and political implications”.
