The Kano state chapter of Kwankwasiyya Movement has cautioned the State Government against fresh loan from the China Development Bank to finance light rail project in the state.
Mr Aminu Abdulsalam, spokesperson for the chapter said this at a news conference on Monday in Abuja.
Abdulsalam said that the state government was in the process of securing a loan of €684million from the China Development Bank which was equivalent to N299.5billion.
He said that there was no justification for such loan considering the current exchange rate and the devastating impact of COVID-19 pandemic on the economy.
Abdulsalam said that in spite of all concerns that the loan negated all thought and perceptions of the people of the state, it was approved by the State House of Assembly.
He said that going ahead with the loan would mortgage the future of the state and the future of children yet unborn.
“Furthermore, this unfortunate development of an ill-conceived white elephant project is coming at a time of global economic crisis compounded by the COVID-19 pandemic, making the repayment of bogus projects impossible,” he said.
Abdulsalam, who was the state PDP Deputy Governorship Candidate during the 2019 general elections, called on all stakeholders to join hands towards stopping the loan.
He said that the movement had already taken some critical steps towards stopping the loan.
“The Chinese Development Bank has been contacted via a petition in respect of the illegality and crass procedural violations by the state government (both the executive and the legislature).
“The attention of the Chinese Embassy in Nigeria has been drawn to the risks of the proposed transaction.
“The President of the Senate, the Minister of Finance and the Director General of the Debt Management Office (DMO) were all written to, protesting against the proposed enslavement of the people of the state.
“On our instructions, our lawyers have already instituted a case in court challenging both the legitimacy and the procedural violations associated with the proposed loan,” he said.
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