Nigeria can’t repay China loan without privatisation ~ Prof. Monye

Chief Policy Adviser to the Governor of Delta State, has stated that federal government will not be able to repay her foreign loans unless some of the assets financed by the loans are privatized.

Professor Sylvester Monye in an exclusive interview with ElombahNews expressed concern over the management of the assets built with the Chinese loans. [watch video of the interview below]

The former Presidential Adviser on Performance Monitoring and Evaluation during the video interview hosted in the United Kingdom said, “It is important to know that while the conditions of borrowing may not be as easy as we think , we will like to have our money and do our things ourselves.

“Have you ever seen a Chinese abandoned project any where in the world?

“It is against Chinese law to abandon a project any where in the world. So, if there are abandoned projects, it is definitely not from Chinese loan.

“So it is actually easier to get the loans, build the railway, generate enough revenue, and to pay back.

Managing foreign loans

“What I quarrel with personally is that, I went to Kaduna with a new train, very beautiful train, the quality is very nice. But, I was shocked that they were charging N1,500.

“My first reaction is; how is government going to generate enough revenue to pay back the loan. What we need to do is to take government out of this operation and allow the private sector to run it like business.

“How can somebody pay N3,000 return, from Abuja to Kaduna in first class on a very comfortable train?

“That is the critical issue – the issue is the management of our assets.

“When the Chinese build an asset for us, it is our responsibility to take over the asset and manage it in a way that it will be economically viable. That should be focus of the debate.

“I have a general concern, the concern that I have is not about contracting the loan, it is rather the amount of loans we are collecting whether it is private sector or the public sector, both local and foreign.

“Are we making sufficient provisions for the management of these assets?

“The big question is, are we able to maximize the benefits accruable for these assets?

“My answer is no!

“Let me give you critical example. When you get to the international airport in Abuja, anybody who has flown through that airport will know that it is a world class airport. Anybody who has travelled abroad to Dubai or London will know that  the Abuja Airport is underutilised.

“How can you build an airport of that magnitude that is comparable to most airports in the world and not using it effectively?

“I am not privy to the airport managers of this government to tell you what plans are, similarly the railway from Kaduna to Abuja is being run by the government.

“If we continue that way we are not going to make it. There is no place for government in business, as long as government is holding on to these assets, we are not going to make it.

“The question is not that we are borrowing but what do we do with the borrowed funds, government has no basis managing these assets government, should play the role of enabler.

“As long as government is there, we are wasting our time. I think we need to have a change of mindset. What is government doing with these assets?

“Let me give an example of some of these challenges. I remember in 2007 before President Obasanjo left office, he tried to concession the Kaduna refinery to Alhaji Aliko Dangote and everybody says ‘you are selling the country assets’, and the next President, late Umaru Yar’adua cancelled the transaction, and what do we have? We are spending billions just to keep it.

“The same Dangote has now said take your property, I am going to build my own refinery.

“Some years ago the Transcorp Hotel was owned 100 percent by the federal government. It was running at a loss, but upon Transcorp group taking over it became one of the most profitable hotels in the entire Africa.

“So, we really to think about how to make these projects profitable.”