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Opinion: Nigeria and Chinese Loans -By Reuben Abati

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By Reuben Abati 

The relationship between Nigeria and China with regard to loans obtained from the latter to fund Nigeria’s infrastructural projects suddenly became a matter of legislative intervention and public scrutiny last week when the House of Representatives summoned the Minister of Transportation, the Minister of Finance, Budget and National Planning and the Minister of Communications and Digital Economy to appear before it on August 17. The Ministers are expected to explain certain clauses in the Agreement signed between Nigeria and the Export-Import Bank of China with regard to a loan of $400 million for the country’s National Information and Communication Technology (ICT) Infrastructure Backbone Phase II Project. The agreement was signed in September 2018 by the Federal Ministry of Finance on behalf of Nigeria (the borrower).  Nigeria’s lawmakers have raised eyebrows about a clause therein which waives Nigeria’s sovereign immunity if it defaults in its repayment plan. 

 

The contentious clause is Article 8(1) which provides inter alia that “the borrower hereby irrevocably waives any immunity on the grounds of sovereign or otherwise for itself or its property in connection with any arbitration proceedings pursuant to Article 8(5) thereof with the enforcement of any arbitral award pursuant thereto, except for the military assets and diplomatic assets.” This has been interpreted to mean that Nigeria is in danger of losing its sovereignty to China. The opposition People’s Democratic Party (PDP) has seized upon it to proclaim that it has been vindicated because it has always argued that the mission of the ruling party, the All Progressives Congress (APC) has always been to mortgage the future of Nigeria. PDP Presidential candidate in the 2019 General elections, Alhaji Atiku Abubakar, quickly added that Nigeria faces the risk of embracing the fate of Zambia with regard to Chinese loans. Groups and stakeholders in civil society, including lawyers and the Socio-Economic Rights and Accountability Group (SERAP) have asked that all agreements ever signed between Nigeria and China should be brought forward and subjected to close scrutiny, just in case any government official either out of ignorance or incompetence has committed Nigeria to a debt-trap, to the disadvantage of future generations. 

 

From the government’s side, the only man who has spoken up is Rotimi Amaechi, the Minister of Transportation, but his explanations do not seem to address the issue. He says for example, that the waiver of immunity in the agreement is merely “a contract term”, a sovereign guarantee. Nobody is convinced. Amaechi and his colleagues who have been summoned by the House of Representatives would have to do much better than that. Nigerians no longer trust their government when it comes to international agreements. The quoted Article 5(1) in the said agreement with the Export and Import Bank of China rings too familiar and too topical in the light of recent revelations about the handling of Nigeria’s agreement with a certain Process & Industrial Development (P&ID). In that case, still on-going, a sum of $9.6 billion is still pending against Nigeria, just because some Nigerian officials signed an agreement that put the country into trouble. 

 

Now, again, in the case of China, the aforementioned Article 8(1) refers to such words as “arbitration”, “property”, “enforcement of arbitral award”. These are the same key words in the P&ID case. Hence, additional questions need to be raised about the Chinese agreement: who signed the agreement? Was due diligence carried out? Was Nigeria thrown under the bus by the negotiators as has been alleged in the P&ID case?  Ordinarily, a waiver of sovereign immunity does not mean that China will take over the running of Nigeria. Sovereign immunity is a principle in customary international law which simply means that a state cannot be pushed around by another state without its own consent to be so treated, in a foreign court. Hence, in every agreement that may go to arbitration, there is usually an agreement as to the place of arbitration and other details. What exactly did Nigeria sign up to on September 5, 2018 with the China EXIM bank? To the extent that the Nigerian people have a right to know, I am convinced that the House of Representatives is in order to raise the questions before us.     

 

To go further, the various stakeholders who have asked for a proper audit of all agreements with China are definitely aware of how the $6.6 Billion judgment against Nigeria which became $9.6 billion (because of accrued interest) in the P&ID case poses a serious risk to the country’s economic survival. They are also probably aware that there are similar cases relating to lack of due diligence in the signing of agreements that Nigeria is also grappling with. This includes the international arbitration in Paris with Sunrise Power and Transmission Company over the Mambilla Hydro Power Plant. Sunrise went to arbitration accusing the Nigerian government of breaching a 2003 agreement when it granted a separate contract to Chinese companies. The same Export-Import Bank of China was on the sidelines of that agreement. I understand the matter has been resolved but 17 years after the initial agreement, the country is yet to make any significant progress with the Mambilla Hydro which if things had progressed as scheduled would have emerged as the second largest hydro power plant in the whole of Africa. In this case, as in others, Nigeria remains behind because some characters failed to do the right thing. Similarly, the Ajaokuta Steel Company Limited which was meant to be a game-changer for Nigeria’s industrial growth process, was also held down for years by disagreements over agreements and a prolonged legal tussle between the Federal Government and a company called Global Infrastructure Nigeria Limited (GINL). Ajaokuta Steel is a living archetype of how all good intentions in Nigeria fail. In one word, legal tussles and arbitral disputes over contracts, obligations and commercial agreements have over the years, exposed the failure of public policy and the incompetence of state officials in Nigeria. Minister Amaechi is concerned that if the same controversy is brought to the door-step of the Chinese, they may simply refuse to provide necessary loans for the Ibadan-Kano rail line. Amaechi appeals to the patriotic instincts of Nigerian lawmakers: he wants them to suspend all further enquiries until Nigeria gets an additional $5.3 billion from the Chinese. He means well no doubt, he wants Nigeria to get that Chinese money that Nigeria needs, but in his appeal lies the bigger question about Sino-Africa relations, and the place and conduct of African leaders within that matrix. 

 

Amaechi is certainly an admirer of China’s romance with Africa. He begs his own country’s parliament to “mechionu” as Igbos would say, so Nigeria can get more Chinese money and sign more agreements. Someone needs to tell Rotimi Amaechi that Nigeria’s engagement with China cannot and should not be reduced to an Abiriba, Aba, or Alaba market transaction business model: “my brother, bring money make we do business, chop together.” But he is not alone. Many African leaders are like that and as they engage China, they fail to look at the sub-text.

Amaechi is certainly an admirer of China’s romance with Africa. He begs his own country’s parliament to “mechionu” as Igbos would say, so Nigeria can get more Chinese money and sign more agreements. Someone needs to tell Rotimi Amaechi that Nigeria’s engagement with China cannot and should not be reduced to an Abiriba, Aba, or Alaba market transaction business model: “my brother, bring money make we do business, chop together.” But he is not alone. Many African leaders are like that and as they engage China, they fail to look at the sub-text.

 In the 70s, China was far behind many African countries. I grew up in a country where any product that was made in China or Taiwan was derisively dismissed. China and Taiwan were the standard euphemisms for fakery, inferiority and cheapness. In those days, Nigerians talked about the British Standard (BS). Nigeria’s economy was doing well. The Naira was at par with the pounds sterling.  Nigerians travelling to London on Fridays aboard Nigeria Airways, stopped by at Liverpool market and the Main street and spent money as if it was going out of business as a legal tender. This was the age of the oil boom. No Nigerian would touch anything Chinese. I grew up being told that anything Chinese or Taiwan does not last. Even when this COVID-19 break-out began, I heard some older Nigerians insisting that if indeed the virus originated from China, it would not last, because nothing that comes from China can be relied upon. Unfortunately, China pulled itself up by the boot-straps. China re-invented itself while other countries either went to sleep or became complacent. It is ironic that today, Nigeria adores China. In our class at the University of Maryland, College Park, 1996 -97, in an American Foreign Policy Process class taught by Hodding Carter III, in the Department of Government and Politics, we read a book titled “The Coming Conflict with China”. That conflict then was at best hypothetical. Today, it is a reality. China is one country that has leap-frogged into the future in an unimaginable manner. The emergent conflict between China and the Western world will be the most definitive factor of this century and the next to come. Africa and the developing world are both at the centre of that conflict. 

 

With China thus on the ascendancy, its leaders defined for that country, broad geo-political ambitions. With the West in retreat and increasingly navel-gazing, protectionist and isolationist, China launched a muscular approach to foreign policy with its Belt and Road Way Initiative through which it sought to engage developing economies by way of financial support through loans and grants. The focus has been so far, infrastructural development but there is a lot more in there. Strategically, therefore, long before COVID-19, China tried to fill a vacuum that Western nations created. As Western creditors prescribed more and more stringent conditions for bilateral and multilateral loans, China offered cheap, easy and accessible alternative financing arrangements: interest-free government to government credits, and preferential loans from China EXIM and the China Development Bank. The latter, that is preferential loans, represents the bulk of China’s overseas lending. Developing countries were over-excited. They swooped on China’s offers like bees after nectar. Today, China is the world’s largest creditor to the developing world. Since 2008, China has been Africa’s main trading partner. There is even now in place, a Forum on China-Africa Co-operation. 

 

Nobody saw the catch, and countries were caught flat-footed. China has been accused of debt-trap diplomacy. Many countries embraced that diplomacy with their hands tied behind their backs and today, their countries are in the throes of debt servitude. China gives but it takes! China helped Sri Lanka to build the port of Hambantota. Both countries signed an agreement, similar to the one Nigeria signed with the Export-Import Bank of China. Today, China runs that port with Chinese personnel. In Djibouti, the Chinese are in charge of the ports too, just because Djibouti borrowed money it could not pay back. In Zambia, for similar reasons, China is now controlling the Zambia National Broadcasting Corporation (in other words, China is in charge of mind control in Zambia). China is also planning to take over the Zambia National Electricity Company. Djibouti took loans from China to build a new port and two new airports, Unable to repay its loans, China has also taken over a part of Djibouti’s sovereign rights and possession of its new port, and has since set up in that country, its first military overseas base. There have been issues as well, with China’s relations with Kenya, Democratic Republic of Congo and other African countries.  

 

But should we blame China? Whatever travails developing countries may have gone through in the hands of China, in the form of damages to their sovereignty, we must all agree on certain basic points. One, “there is no free lunch”. China is not offering anyone a free lunch. Its cheap loans are tied to its own strategic interests in the world.  African nations are the ones submitting themselves as pawns to China’s global strategic agenda. African leaders are most certainly complicit.  Two, “when you borrow, you pay”.  Chinese negotiators are often focused. If you don’t pay in cash, you will pay in kind. The Chinese only give out their loans even under the Belt and Road Initiative to countries that have something to offer in return. Many developing countries are so economically narrow and badly managed, they end up giving up national resources for borrowed funds that translate into debt servitude. Three, and this is the worst part, is that Chinese loans are often opaque. This is one of the reasons China is not a member of the Paris Club. It may have committed to the G-20 process on the moratorium for debt service re-payments for example, but China has stubbornly refused to participate in data calls. It is the biggest player in Africa’s infrastructure boom but it may never disclose the full details. China’s influence in Africa even runs far deeper. In Nigeria, that influence has gone beyond loan agreements that touch on sovereign rights to an increasing ubiquity of Chinese presence in Nigerian lives. It is so real that the Chinese have now taken over a rather complicated business chain in the country from manufacturing to retail, including internet services, hospitality, car sales and ride hailing services. One of these days, we may wake up to see a Chinese roasting corn by the road-side in Nigeria, properly licensed to do so!

 

Nigerian lawmakers have a responsibility to shout out about Nigeria’s sovereignty, and the integrity of agreements with China or others.  We certainly don’t want to hear that a certain Amaechi has signed off Nigeria’s Presidential Villa to the Chinese to get cheap loans to build a rail line to Port Harcourt!. If that were to be the case, the Chinese will take over that Villa and like P&ID, look at us all in the face, talk about the sanctity of agreements, and dare Nigeria to go to the court of international arbitration. The onus is on Amaechi and co to tell us what we need to know. The Chinese knee is on our necks today, simply because our leaders have failed to lead us aright.  

 

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Alleged Corrupt Practices: Dangote Petitions ICPC Against NMDPRA MD Farouk

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Chairman, Dangote Group, Alhaji Aliko Dangote, has formally submitted a petition to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) against the Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Ahmed Farouk, over alleged corruption and financial impropriety.

The petition, dated December 16, 2025, was submitted through Dangote’s lawyer, Dr. Ogwu James Onoja, SAN, and received at the office of the ICPC Chairman, Dr. Musa Adamu Aliyu, SAN.

In the petition, Dangote called for the arrest, investigation and prosecution of the NMDPRA boss, alleging that Farouk has been living far above his legitimate means as a public servant.

Dangote specifically accused Ahmed Farouk of allegedly spending over seven million United States dollars on the education of his four children in Switzerland, paid upfront for a six-year period, without any lawful explanation for the source of the funds.

According to the petition, the four children and their respective schools in Switzerland were clearly identified, along with the amounts paid on their behalf, to enable the ICPC verify the allegations.

The industrialist further alleged that Farouk Ahmed had been using his position at the NMDPRA to embezzle and divert public funds for personal gain and private interests, actions which he claimed had recently triggered public protests and widespread criticism of the agency.

Dangote maintained that Ahmed Farouk has spent his adult life working in Nigeria’s public sector, adding that his cumulative earnings over the years could not reasonably account for the alleged seven million dollars reportedly spent on the overseas education of his children.

“It is without doubt that the above facts in relation to abuse of office, breach of the Code of Conduct for public officers, corrupt enrichment and embezzlement constitute gross acts of corruption, for which your Commission is statutorily empowered under Section 19 of the ICPC Act to investigate and prosecute,” the petition stated.

It further noted that under the same section of the ICPC Act, any person found guilty of such offences is liable to imprisonment for a term of five years without an option of fine.

Dangote urged the commission to act decisively, stressing that the ICPC, alongside other anti-graft agencies, is strategically positioned to investigate and prosecute corruption-related offences.

“In view of the foregoing, we call on the Commission under your leadership to investigate the complaint of abuse of office and corruption against Engr. Farouk Ahmed and to accordingly prosecute him if found wanting,” the petition added.

The Dangote Group Chairman also expressed confidence that the matter, being in the public domain, would not be ignored, urging the ICPC to act in the interest of justice and to protect the image of President Bola Ahmed Tinubu’s administration.

Dangote further pledged his readiness to provide additional evidence to substantiate his allegations of corrupt enrichment, abuse of office and impunity against the NMDPRA Managing Director.

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Tinubu Didn’t Win 2023 Election, Will Lose in 2027 – Abaribe

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The lawmaker representing Abia South Senatorial District, Senator Enyinnaya Abaribe, has predicted that it would be impossible for President Bola Tinubu to win second termn in the 2027 presidential election.

Abaribe, who claimed that the President never won the 2023 election, said the level of hardship Nigerians are currently facing has made them more determined to ensure that Tinubu does not return as president after 2027.

Reacting to suggestions that Tinubu has never lost an election, Abaribe, who appeared as a guest on Channels Television’s Politics Today on Monday, said, “I do not think so. Everybody loses elections, and you will see when the time comes. He will lose in 2027 because I know what Nigerians are feeling outside.”

He added: “Tinubu never won the 2023 election, and everybody knows it. But we said fine, he has been declared the winner, no problem. We acknowledge him as president, but we are going to meet him in the field, and I will see how he is going to cobble together what will make him win again.

“It won’t work, because this time everybody will be ready. It will no longer be an announcement at 3am before people wake up in the morning. This time, people are ready; we are ready, and the masses are even more ready.”

The senator, who said the economy has collapsed under Tinubu and that the president has yet to solve the problem of insecurity, wondered where he would get the votes to win in 2027.

On the defection of some opposition leaders to the ruling All Progressives Congress (APC), Abaribe vowed never to join the wave, saying he would be the last person to do so.

He said that rather than strengthening the APC as a party, the defections would deepen internal divisions and fuel leadership tussles.

“If there is anybody who is going to defect to the APC, I think I should be the very, very last one. By the time I defect, it would mean there are no parties left in Nigeria, including the APC,” he said.

“I have a very simple theory about defections. I think it is very good for us in the opposition that these defections are happening. All the APC is doing is absorbing all the problems it is going to face; they are right inside the party now. Ask yourself, in all the states where there are defections, what is going on there now?”

The lawmaker described the APC as a giant with feet of clay, saying the opposition would target its weak points during the election, leading to its collapse.

Abaribe, who reaffirmed his membership of the opposition coalition, said there is a consensus among opposition leaders to unite in order to dislodge the APC from power.

The coalition has adopted the African Democratic Congress (ADC) as the platform for the 2027 elections, but many have claimed the move is a strategy to enthrone Atiku Abubakar and compel all opposition members to support him.

However, Abaribe disagreed, saying the party has yet to release its guidelines and other arrangements ahead of the 2027 elections.

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Threat Against Nigeria’s Multi-Party Democracy: Atiku, Obi, George, Others Accuse Tinubu of Plot to Annihilate Opposition

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By Eric Elezuo

Major opposition leaders in the country have raise the alarm over threat against Nigeria’s Multi-Party Democracy, accusing President Bola Tinubu of plot to annihilate opposition.

In a letter signed a group of major opposition and opinion leaders including Alhaji Atiku Abubakar, Mr. Peter Obi, Chief Bode George, Chief John Odigie-Oyegun, Alhaji Lawal Batagarawa and Senator David Mark, the group demanded an independent review body to examine public accounts of federal, state, LGs from 2015 to 2025, the embedding of anti-graft operatives directly into government payment, expenditure processes at all levels among others

Titled “Anti-Corruption, Not Anti-Opposition: A Joint Statement by Opposition Leaders on the Growing Politicisation of State Institutions for Persecution of the Opposition”, the statement frowned at the state of the nation, lamenting the “unfortunate and gradual slide of our country into a state where key national institutions – particularly the Economic and Financial Crimes Commission (EFCC); The Nigeria Police; The Independent Corrupt Practices and Other Related Offences Commission (ICPC) are increasingly perceived as tools of political intimidation, selective justice and systematic persecution of opposition leaders.”

The statement in full:

We are compelled by duty to nation and conscience to issue this statement to alert our compatriots and the international community to the unfortunate and gradual slide of our country into a state where key national institutions – particularly the Economic and Financial Crimes Commission (EFCC); The Nigeria Police; The Independent Corrupt Practices and Other Related Offences Commission (ICPC) are increasingly perceived as tools of political intimidation, selective justice and systematic persecution of opposition leaders.

Across our nation, there are mounting concerns that state power is being deployed not for prevention of economic crimes, but for persecution of perceived political adversaries, with the ultimate aim of weakening opposition voices and dismantling Nigeria’s multiparty democracy.

A Dangerous Agenda Unfolding

More than ever before in our democratic experience, Nigerians have witnessed what many now describe as a covert, undemocratic agenda: to ensure that all state governments fall under the control of the President’s party – not through transparent electoral contests, but by secretly intimidating opposition governors via the anti-corruption apparatus until they succumb and defect. Recent defections of opposition governors into the ruling party have reinforced public suspicion that political pressure, not ideological or personal persuasion, is driving this realignment. This pattern forms part of a broader project that targets not only elected leaders but also key opposition figures perceived as architects of emerging coalitions ahead of the 2027 general election. We must warn that this project, if allowed to continue unchecked, poses a grave danger to Nigeria’s democratic future.

Weaponisation of the EFCC

There is a discernible pattern of persecution of the opposition by the EFCC with the sole objective of weakening same for the benefit of the ruling APC. This disturbing pattern mirrors a long-standing sentiment openly expressed years ago by a former National Chairman of the ruling APC, Adams Oshiomhole, who declared when receiving defectors from the PDP: “Once you have joined APC, all your sins are forgiven.” Whether intended as political rhetoric or not, this statement has come to symbolise a troubling reality: allegations against members of the ruling party are routinely perceived to be overlooked, while even unsubstantiated accusations against opposition figures are vigorously pursued and subjected to media trial.

A few recent examples reinforce this perception. Months ago, a minister was implicated in a financial scandal so blatant that only sustained public outrage forced her resignation. Yet, long after stepping down, she has neither been charged nor arraigned by the EFCC and is now actively involved in the President’s re-election campaign. Similarly, another minister remained in office despite the university he claimed to have attended publicly denying his academic certificate. He, too, resigned only after intense public pressure, Months later, no charges have been filed.

Such selective enforcement undermines the legitimacy of anticorruption efforts and erodes public trust. Furthermore, Nigerians are not blind to the sudden empowerment of certain political actors, including individuals appointed to federal executive positions after crossing from the opposition but still claim to be members of opposition party – whose unstated mandate, in the public’s eyes, appears to include the systematic destabilisation of opposition parties through the creation of factions, inducement and the exploitation of judicial processes, allegedly funded by state resources.

Erosion of EFCC’s Independence

The EFCC is a critical national institution, created to safeguard Nigeria’s economic integrity.

Yet today, many Nigerians fear that its independence is steadily being eroded. An agency designed for prevention and accountability risks becoming an instrument of political persecution, undermining both justice and democracy. The President must recognise that evident social and political injustice could snowball into mayhem as the nation approaches another election cycle. This trend must be halted immediately if the nation must be spared a major catastrophe.

OUR DEMANDS
• Depoliticise EFCC: The operations of the EFCC must be urgently shielded from political interference and must not serve the whims and caprices of any President, party or political faction.

• Return EFCC to Its Statutory Mandate: The Commission must refocus on genuine detection and prevention of economic crimes across board, not selective prosecution, media trials or intimidation of opposition figures. For the avoidance of doubt, the Functions and Powers of the Commission are expressly provided for under Sections 6 & 7 respectively.

• Defend Multiparty Democracy: Nigerians must remain eternally vigilant to ensure that the President does not transform the country into a de facto one-party state – as witnessed in Lagos over the last 25 years, where opposition leaders were silenced, coerced or induced into irrelevance.

• Embed Preventive Anti-Corruption Mechanisms: Relying on the Supreme Court ruling on the powers of the EFCC over all public accounts, for true prevention of financial crimes, anti-graft operatives should be embedded in all the payment processes of governments at all levels to ensure compliance with rules of transparency, accountability and probity in public financial transactions. Put differently, the EFCC must recognise and exercise their function as covering both pre and post expenditure. operatives must also be held accountable for any unreported but later detected economic and financial infractions in their respective areas of oversight. To further strengthen the EFCC, we propose that the EFCC Act should be amended for this purpose.

• Establish an Independent Review Body: We call on the Attorney General, in consultation with the National Assembly, to set up an independent review body which should be granted full access to the public accounts of the federal, all states and all local governments covering from 2015 to 2025, with a mandate to conduct a transparent, comprehensive review of financial transactions and publish its findings. Such a review will expose the EFCC’s pattern of selective prosecution of opposition figures and reveal that many current officials of the federal government—and those of ruling-party-controlled states—should have long been prosecuted for economic and financial crimes, but were shielded due to their political affiliation. Based on its findings, the independent body should also propose amendments to EFCC’s enabling law to strengthen the agency for more effective and efficient prevention of financial crimes.
This proposed body is to be chaired by an eminent judge, and composed of the following:
– Representatives from civil society organisations
– Representatives of the Nigerian Bar Association
– Representatives of Institute of Chartered Accountants of Nigeria
– Representatives of Institute of Chartered Bankers
– The Nigerian Financial Intelligence Unit
– Representatives of anti-graft agencies
– Representatives of the Police
– Representatives of the DSS
– Representatives of the Armed Forces
– Representatives of all political parties with a seat in the National Assembly.

A Call to Defend Nigeria’s Democracy

We call on all patriotic Nigerians across party lines, professions, regions and faiths to stand firm. Our democracy is under threat through the deliberate and systematic weakening of opposition forces, with the EFCC as the central instrument in this troubling strategy.

In the coming weeks, we will provide more details, and also engage foreign partners of Nigeria’s anti-graft agencies and diplomatic missions, including United States, UK, Canada, EU, World Bank Office, United Nations, to express our deep concern about the EFCC increasingly becoming a willing tool in a broader scheme to weaken opposition in Nigeria, and also demand a reform of the anti graft agency.

Nigeria’s democracy demands our vigilance, courage and unity, as Edmund Burke, an Anglo-Irish statesman and philosopher, warned: “The only thing necessary for the triumph of evil is for good men to do nothing”.

We are equally guided by the enduring words of Martin Luther King Jnr: “Silence in the face of evil is itself evil ……In the end we shall remember not the words of our enemies, but the silence of our friends.” Now is the time for all of us to rise in defence of our cherished multiparty democracy, and indeed, in defence of the very soul of our nation.

We must make a deliberate choice not to be remembered by posterity for our Silence.
Nigeria belongs to all of us – not to a single party or a single leader.

Signed,
Sen. David Mark, GCON
Alh. Atiku Abubakar, GCON
Mallam Lawal Batagarawa
Chief Bode George
Mr. Peter Obi, CON
Chief John Odigie-Oyegun

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