President Muhammadu Buhari has sought the Senate’s approval to settle the judgement debt in the sum of $566,754,584.31, £98,526,012.00, and N226 billion, totalling N704billion.
The request letter, which came barely four days to the end of his eight-year tenure, was read at plenary Wednesday by Senate President Ahmad Lawan.
The debts were owed by the federal government through the issuance of promissory notes.
“The Distinguished Senate President may wish to be informed that the Federal Executive Council at its meeting of March 29, 2023, approved the liquidations of top priority judgement debts and general judgement debts owed by Ministries, Departments and Agencies through the issuance of promissory notes.
“The judgement debts are to be settled through the issuance of promissory notes which will then be redeemed over time through provisions in the budgets of the Federal Government of Nigeria.
“Thus debt securities have been issued for the settlement of the judgement debts and approval of the National Assembly is required for this purpose.
“In view of the foregoing, I wish to request the Senate to kindly consider and approve through its resolution the settlement of the top priority judgement debts and general judgement debts incurred by Federal MDAs in the sum of USD566,754,584.31, £98,526,012.00 and N226,281,801,881.64 through the issuance of promissory notes.
“The Honourable Attorney-General of the Federation and Minister of Justice, Mr Abubakar Malami (SAN) and the Honourable Minister of Finance, Budget and National Planning, Zainab Ahmed, shall provide any information that may be required by the Senate for the consideration of this request,” Buhari said in the letter which reads in part.
According to reports, some 648 cases were brought against the president and other federal government’s parastatals.
Ozekhome expresses worry
Reacting to the development, a Senior Advocate of Nigeria, SAN, Chief Mike Ozekhome, described President Buhari’s move as a last-minute rush to eat up the remnants of a strangulated economy.
The learned silk likened the president’s actions to show of ephemerality of power.
Ozekhome said: “The government erroneously thought 8 years was a Millennium. Now that the time has come for them to leave by constitutional effluxion of time, they are rushing to sell Nigeria.
“Why now for a government that has been in power for 8 years?
Who verified these debts? How were they prioritised above others? Of course, you can be very sure that our unquestioning “yes sir” and “Mr-take-a-bow” Senate will approve it without qualms; without questions; without interrogation.
“While the Debt Management Office (DMO) estimates Nigeria’s debt to be N25 trillion or $103.11 billion as at December 2022, the Nigeria Employers Consultative Association (NECA) said Nigeria’s debt profile could hit N77 trillion in June, 2023.
“This government that has left Nigeria bleeding on every index of governance is adding salt onto injury by giving Nigerians this final farewell slap. It’s sad for Nigeria.”
Also baring his mind, an Abuja-based legal practitioner, Gani Arobo, faulted the letter, saying it is possible that there may not be thoroughness in the process leading to final approvals.
Arguing further, Arobo noted that persons with ulterior motive may smuggle in propositions that do not pass through intense scrutiny.
Arobo added: “What is even more worrisome is that this government is transiting to another APC government. It would have been expected that such work left undone will be left to them to work out modalities since government is a continuum.
“Note that the amount being proposed is in hundreds of billions. So, while it may not be said to be an illegality, it certainly does not give good optics.
“In the American system, which mirrors our own democratic process, this government has become lame-duck. During the lame-duck session, the Executive does not pursue new policies, initiate new projects or take on huge consequential obligations.
“All the President does is issue clemency, approve pardons and humanise his administration. These are conventions practiced worldwide which this action seems to ignore.”
Babalola faults Buhari’s $800m loan request
In a related development, a legal icon and founder, Afe Babalola University Ado Ekiti (ABUAD), Chief Afe Babalola, SAN, has faulted President Buhari’s request, seeking National Assembly’s approval for a fresh $800 million loan to finance the National Social Safety Network Programme (NSSNP).
The silk spoke Wednesday at the Aare Afe Babalola 12th Annual Public Lecture organised by the Nigerian Bar Association (NBA), Ado Ekiti branch and held at the ABUAD campus.
The ABUAD founder expressed shock that Buhari could seek a fresh loan in a country with “undeclared bankruptcy.”
“I do not expect the parliament to accede to that request. How can you be an undeclared bankrupt country and yet be borrowing more money? I do not think that any right thinking person will give us a loan with trillions of Naira debt. I believe and sincerely hope that the National Assembly will not approve it.
“The type of elections being held in the country cannot produce the right people. If we had the right people in the National Assembly they would have instantly turned down the request of President Buhari to borrow $800 million. That is why I am an advocate of a new constitution and I want you (NBA) to join me in that crusade,” Babalola said.
In his presentation, the guest lecturer at the event who is the Deputy Vice Chancellor of the University of Jos, Professor Joash Ojo Amupitan, SAN, advocated that Chapter II of the 1999 Constitution must be made justiciable. This, he said, would promote accountability and cause the nation’s resources to be utilised for more important projects, as well as, reduce the portion of resources available for stealing and misappropriation under whatever guise.
In his lecture titled: “Addressing the Nigerian Economic Challenges through the Instrumentality of the Law and Future Economic prosperity”, the Professor of Law said implementing Chapter II would promote the wellbeing, welfare and security of the average citizen, promote economic growth and development and ensure an egalitarian society.
“A collective and legislative action would be necessary to amend section 16 or Chapter II of the Constitution and make it justiciable. This will involve a lot of awareness and advocacy actions by the Nigerian Bar Association and Coalition of Civil Societies and the Judicial Statesmen.
“Second, the Courts need to be more involved especially at the highest level- moving from just error correction to policy courts. We need the likes of Lord Denning, Justice Marshall of the United States, Justice Kayode Eso, Justice Obaseki, Justice Oputa, Justice Niki Tobi, and the like to reactivate the era of judicial activism in Nigeria,” Amupitan said.
