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19.08.2004 General News

Nigerian govt sued Over Loans to Ghana

By This Day

Leader of the National Conscience Party (NCP), Chief Gani Fawehinmi (SAN) yesterday instituted a suit at a Federal High Court, Abuja against the Federal Government for granting $45 million loan (about N7.5 billion) to the governments of Ghana and Sao Tome and Principe.

Fawehinmi, who is contesting the legality of the loans to the said governments, is asking the court to restrain President Olusegun Obasanjo from carrying out the action.

He also asked for a declaration that the grants of $40 million (N6.4 billion) to Ghana and $5 million (N 800 million) to Sao Tome and Principe by the President without the terms and conditions for such grants having been previously prescribed by the National Assembly are unconstitutional and violate the provision of section 164 (2) of the 1999 constitution.

Section 164 (2) provides: "The Federation may make external grants to foreign state or any international body in furtherance of the foreign policy objectives of Nigeria in such sum and subject to such terms and conditions as may be prescribed by the National Assembly."

Obasanjo had in a July 27, letter addressed to the National Assembly, stated that he granted a loan of $40 million to Ghana and $5 million to Sao Tome and Principe.

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