The Debt Management Office (DMO) has denied the claim made by the non-governmental organization Socio-Economic Rights and Accountability (SERAP) that Nigeria has defaulted on its Chinese loans.

SERAP had applauded a court judgment that ordered the current administration, led by President Muhammadu Buhari, to account for the $460 million borrowed from China for the Abuja Closed-Circuit Television project, which was not implemented.

SERAP also cited a report claiming that Nigeria had failed to repay loans, resulting in penalties amounting to N41.31 billion.

However, the DMO refuted these allegations, stating that they were false and that Nigeria had not defaulted on any of its debt service obligations.

The DMO affirmed Nigeria’s commitment to fulfilling its debt obligations.

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SERAP had initiated a lawsuit against the Federal Government following a statement made by the Minister of Finance, Zainab Ahmed, in 2019 regarding the loan repayment and lack of information on the status of the CCTV project.

Justice Nwite, delivering the judgment, agreed with SERAP that there was a reasonable cause of action against the government and emphasized the importance of accountability in the public interest.

The presiding justice also pointed out that the Minister of Finance is responsible for the country’s finances and cannot be unaware of the amounts paid to contractors for the Abuja CCTV contract and the funds allocated for the construction of the headquarters of the Code of Conduct Bureau.

SERAP welcomed the judgment as a step towards holding the government accountable for the use of borrowed funds.