IDEAS ON NIGERIA
Adey Oyenuga
You wrote that "The projects themselves should be used as collataral for
the loans." I seriously doubt if this is possible. For, this is bound to
lead to more 419s (or other ill-activities) by the ruling Government. By
using proposed projects as collateral for loans, it would make it easier
for the (ruling) Government to 'pull a fast one' on the populace and the
lenders.
For example, this in-coming Government took out a loan for $1 Billion to
develop our Airports. Four/five years down the line - These Airports are
yet to be developed, and the ($1 Billion) loan has been 'spent' on other
projects. Should Nigeria 'hand-over' the Airports to the foreign lenders
for defaulting on the said loan?
I believe [like SteveK] that UNTIL the populace start to treat ALL LOANS
and ALL GOVERNMENTAL PROJECTS as THEIRS (rather than, always shying away
or passing the buck), Nigeria shall continue to 'suffer' in the hands of
our IRRESPONSIBLE LEADERS.
I THINK I understand the thrust of your note, however, allowing a ruling
Government the FREEDOM to mortgage away OUR NATION's DESTINY can or will
only lead to a disconsolately state. The state of affair which may place
the Nation on a trend of doom.
BTW, this tactic COULD have worked when we had that SOB, Sani Abacha, in
power. However, in a Democratic Government, we ALL owe it to Nigeria not
to pass the buck....AGAIN.
I would like to direct your attention to the following excerpts.
========================================================================
1999 Budget of Realism. Address by General Abdulsalami Abubakar, Head of
State, Commander-in-Chief of the Armed Forces of the Federal Republic of
Nigeria:
[In Parts]:
Our economic fortunes and experiences have once again exposed the major
weaknesses of the Nigerian economy. The over reliance on oil as a source
of government revenues and foreign exchange earnings, coupled with weak,
import-dependent industrial base as well as low productivity in the
agricultural sector rendered the economy extremely vulnerable to fiscal
and macro economic imbalances. A major development goal for the country,
therefore, is to diversify the productive, foreign exchange and revenue
base of the economy......
Revenue Estimates:
=================
At the beginning of 1998, the average selling price of crude oil was
US$16-17 per barrel. This dropped steadily during the year and by October
1998, the realisable price was US$12.8 per barrel, while the price for
January 1999 deliveries is less than US$11.00 per barrel. In view of the
slump in the global oil market, the price of US$9 per barrel has been
adopted for the 1999 budget.
Based on an exchange rate of N86 to US$1, the sum of N453.7 billion is
estimated to accrue as revenue from oil and gas sources in 1999. Non-oil
revenue is estimated at N214 billion, bringing the projected total
federally collected revenue from oil and non-oil sources in 1999 to N667.7
billion.
Given the change in the exchange rate conversion factor, the estimated
expected total revenue for 1999 has dropped in real terms by 54 per cent
from its 1998 level. The Federal Government gross revenue for 1999 is
therefore projected at N146.7 billion.
External Debt Management:
========================
For a number of years now the 2 billion US Dollars usually set aside for
servicing Nigeria's external debt has fallen below the requirement of our
creditors. Even though this practice has resulted in the accumulation of
substantial arrears, Government is only able to earmark the sum of 1.5
billion US Dollars for external debt service this year, due to resource
constraints in 1999. It has therefore become imperative for us to explore
options for reducing our debt service payments to affordable and
sustainable levels.
Accordingly, efforts will be intensified to open up negotiations with the
Paris Club, Bretton Woods Institutions and other creditors to seek debt
reduction and debt relief. The Ministry of Finance will pursue vigorously
the achievement of this goal. We have initiated discussion with the Bretton
Woods institutions and the Secretariat of the Paris Coub towards evolving
a programme aimed at eventually attaining debt relief for the country.
Government will also continue with the debt conversion programme as a
vehicle for debt reduction and investment promotion.
Embargo on External Loans:
=========================
In view of the projected deficit in the 1999 budget, there is a need for
government to broaden the source of funding in order to close the financial
gap in the budget. Accordingly, government has lifted the 1994 embargo
placed on external borrowing particularly with respect to concessionary
and project-tied loans and credits. Furthermore, financing of export-based
projects, based on the assets and revenue flows of the enterprise,
especially in the gas and oil sectors, will be considered.
Priority Projects:
=================
A comprehensive list of priority projects is being compiled.. The debt
component of these projects will be reviewed with a view to restructuring
and rescheduling it in line with our cash flow realities.
Foreign Policy:
==============
This Administration will continue, in 1999, to pursue its policy of
constructive engagement with other members of the international community.
We are committed to ensuring that Nigeria takes its rightful place among
the comity of nations based on the principles of mutual respect and
protection of our national interests. During the course of 1998, the
international community responded positively to our posture of reaching
out in accordance with these principles. We appreciate such warm
responses and support, and hope the international community will continue
to support Nigeria at this crucial stage of our history not only in
ensuring the successful implementation of our political transition but
also our economic reform programmes.
The global economic recession we are all witnessing of recent in many
parts of the world calls for serious concern. Nigeria belongs to an
integrated, inter-linked world economy. Given the already existing
structural weaknesses of our national economy, we are not immune to the
problems ravaging national economies in other parts of the world. To
reduce our vulnerability, Nigeria requires substantial capital inflow to
complement domestic resources in order to revamp the economy.
Government would, therefore, vigorously pursue economic diplomacy to
mobilize the support of the international community for Nigeria's policy
reform. This would enable the country to attract foreign investments as
well as provide the enabling environment for a more favourable
consideration for Nigeria's request for external debt relief. Bilateral
talks between Nigeria and other countries and multi-lateral institutions
will also emphasize the issue of trade and development.
Governance:
==========
This administration has repeatedly stressed its determination to combat
corruption and improve the governance of our nation. This reflects our
firm belief that sound macro-economic policies and structural reforms
alone will not be enough to put Nigeria on the path of sustainable growth.
We must, therefore, also tackle the pervasive corruption and the
deterioration in the rule of law which stand in the way of a great nation.
========================================================================
Whether we LIKE it or not and/or whether we WANT it or not, the populace
MUST ASSOCIATE with the Democratic (ruling) Government. You may NOT have
voted or be in support of the (ruling) Government, HOWEVER, as a CITIZEN,
you OWE it to Nigeria not to 'dissociate' yourself from her Business and
National Affairs. For, IF Nigeria goes down, WE ALL go down.
Prince Adey.
At 11:33 AM 5/12/99 -0500, In Part, Chief Ejikeme Obasi wrote:
>It is clear to most of us on the Net, that there will NOT be any
>meaningful attempt to try and recover the country's stolen billions. We
>do not even have enough influence or the resources to ensure probity in
>the incoming government. We CAN however, mitigate against ruinous
>borrowing by publicly declaring that ALL outside debt acquired by the
>incoming government has to be for the funding of specific revenue
>generating projects, that will be expected to repay the loan. The
>projects themselves should be used as collataral for the loans. We
>should make it clear that the Nigerian people REFUSE TO ACCEPT
>RESPONSIBILITY FOR ANY LOAN(S) MADE TO GOVERNMENT OUTSIDE THESE
>PARAMETERS, AND SUCH LOANS ARE TO BE CONSIDERED AS BETWEEN THE LENDING
>INSTITUTION AND THE GOVERNMENT SIGNATORY TO THE LOAN.
tunde giwa
My broda, how many times I call your name?
You've been peddling this gloom and doom song and dance
for a couple of years now. By the grace of the ancestors,
none of it has come to pass. This is the way it will continue
to be. Ase.
Listen up. I'm not saying that Obas does not have *major*
challenges ahead of him. He does. Neither am I saying that
there will not be 'troubles' in the Delta area. In fact, I expect it.
I just think that it will be possible to overcome these 'troubles'.
You exaggerate a bit when you say we are "dead broke" we are
not quite insolvent yet. Yes, the reserves are down significantly,
and yes, the receipts from oil sales are down. This is a bump in
the road not a road block.
Major changes have to be made in the Delta area. Much more
equity and sustainable development must be brought to the area.
All this said and done, it is very possible that force will still have to
be used against those in that area with a terroristic or anarchistic
inclination. There was a report yesterday or so about a certain
group warning people to leave an area. This must never be
tolerated. Such groups must be confronted with all the force at
Nigeria's disposal.
It remains my belief that, unlike you, the overwhelming majority of
Nigerians maintain some faith in Nigeria and have hope for a better
future. Whether Obas can deliver is an open question, but we must
not allow a few gun-toting gangsters masquerading as freedom
fighters to derail that hope and let Nigeria, in your words,
"slide into hell."
Tunde Giwa
----- Original Message -----
From: Ekenlor Idi <tch...@yahoo.com>
To: Ejikeme Obasi <dabe...@webtv.net>; <naij...@esosoft.com>
Sent: Wednesday, May 12, 1999 2:35 PM
Subject: RE: IDEAS ON NIGERIA
>
>
>--- Ejikeme Obasi <dabe...@webtv.net> wrote:
> All this raises the very real possibility that Nigeria
>> is
>> going to see another "feeding frenzy" as corrupt government
>> officials
>> and equally corrupt lending and financial institutions collude to
>> put
>> Nigeria more deeply in debt.
>
>Ejike, there probably will be nothing left for them to feed on. The
>point is that Nigeria is dead broke. The governing class can no
>longer govern the governed class. (This is the objective reason the
>military are leaving. Obasanjo will soon confront this reality.)
>Real anarchy will soon be let loose. Obasanjo will, I predict, try
>to use force to "pacify" the delta and the labor unions. Ordinary
>Nigerians will rise up in opposition and Nigeria could slide into
>hell.
>
>Netters, hold fast your residence permit (if you have one.)
Ekenlor Idi
--- Ejikeme Obasi <dabe...@webtv.net> wrote:
All this raises the very real possibility that Nigeria
> is
> going to see another "feeding frenzy" as corrupt government
> officials
> and equally corrupt lending and financial institutions collude to
> put
> Nigeria more deeply in debt.
Ejike, there probably will be nothing left for them to feed on. The
point is that Nigeria is dead broke. The governing class can no
longer govern the governed class. (This is the objective reason the
military are leaving. Obasanjo will soon confront this reality.)
Real anarchy will soon be let loose. Obasanjo will, I predict, try
to use force to "pacify" the delta and the labor unions. Ordinary
Nigerians will rise up in opposition and Nigeria could slide into
hell.
Netters, hold fast your residence permit (if you have one.)
> It is clear to most of us on the Net, that there will NOT be any
> meaningful attempt to try and recover the country's stolen
> billions. We
> do not even have enough influence or the resources to ensure
> probity in
> the incoming government. We CAN however, mitigate against ruinous
> borrowing by publicly declaring that ALL outside debt acquired by
> the
> incoming government has to be for the funding of specific revenue
> generating projects, that will be expected to repay the loan. The
> projects themselves should be used as collataral for the loans. We
> should make it clear that the Nigerian people REFUSE TO ACCEPT
> RESPONSIBILITY FOR ANY LOAN(S) MADE TO GOVERNMENT OUTSIDE THESE
> PARAMETERS, AND SUCH LOANS ARE TO BE CONSIDERED AS BETWEEN THE
> LENDING
> INSTITUTION AND THE GOVERNMENT SIGNATORY TO THE LOAN.
> If the Accountants and "financial gurus" on the Net, working hand
> in
> hand with our Lawyers, are able to craft an appropriate document,
> we
> could all append our signatures to such a document, and have it
> published in all the major world newspapers.This sends the message
> to
> the Nigerian leadership ( saint and robber alike) as well as to the
> international lending agencies, that the Nigerian people are TIRED
> of
> killing themselves for the benefit of a few, and ends up being a
> service
> that benefits ALL Nigerians, regardless of tribe, religion, or
> state of
> origin.
How do we implement this? As I look at Nigeria, I am tempted to give
up hope. The country is at the intersection of hopelessness,
despair, and frustration. It may eventually break up no matter how
much we oppose such an outcome. But it may be for our common good.
There is, however, something Obasanjo can do to forestall this
eventuality. He must renew our peoples' faith in Nigeria by setting
out to recover stolen monies. As much as is possible.
okn
---
> Ejikeme
>
>
===
okn
------
"Truth is the daughter of tomorrow."
_________________________________________________________
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Ejikeme Obasi
I write in response to someone's posting decrying the paucity of new
ideas on the net.
In recent months we have read of large payoffs to retiring (and
retired) Generals. We have been warned (here on the NET) that the
country's foreign reserves have been dangerously drawn down, to pay for
programmes that were not well thought out. We have witnessed the
introduction of fiscal policies that have resulted in the further
devaluation of the Naira and worsening inflation at a time when the
country needs to be moving in the opposite direction. The incoming
president and his vice have been very active in international circles
trying to raise money with which to run their government. In addition,
various state governors have, either directly, or through
intermediaries, started preliminary negotiations to procure foreign
funding. The local "money bags" that funded many of the elected officers
are waiting (inpatiently) in the wings, for their investments to start
yielding dividends. Despite rumblings within the IMF and other financial
institutions, the word is that loans WILL be made available to the new
government. All this raises the very real possibility that Nigeria is
going to see another "feeding frenzy" as corrupt government officials
and equally corrupt lending and financial institutions collude to put
Nigeria more deeply in debt.
unwilling to offer debt relief based on the premise that the country is
(potentially) wealthy. Those responsible for putting the country in
this mess not only refuse to lift a finger to help out, but are still
actively wheeling and dealing to further increase their stash of stolen
loot, which if we can believe some of what we hear, is enough to pay off
Nigeria's external debt!!!!
It is clear to most of us on the Net, that there will NOT be any
meaningful attempt to try and recover the country's stolen billions. We
do not even have enough influence or the resources to ensure probity in
the incoming government. We CAN however, mitigate against ruinous
borrowing by publicly declaring that ALL outside debt acquired by the
incoming government has to be for the funding of specific revenue
generating projects, that will be expected to repay the loan. The
projects themselves should be used as collataral for the loans. We
should make it clear that the Nigerian people REFUSE TO ACCEPT
RESPONSIBILITY FOR ANY LOAN(S) MADE TO GOVERNMENT OUTSIDE THESE
PARAMETERS, AND SUCH LOANS ARE TO BE CONSIDERED AS BETWEEN THE LENDING
INSTITUTION AND THE GOVERNMENT SIGNATORY TO THE LOAN.
If the Accountants and "financial gurus" on the Net, working hand in
hand with our Lawyers, are able to craft an appropriate document, we
could all append our signatures to such a document, and have it
published in all the major world newspapers.This sends the message to
the Nigerian leadership ( saint and robber alike) as well as to the
international lending agencies, that the Nigerian people are TIRED of
killing themselves for the benefit of a few, and ends up being a service
that benefits ALL Nigerians, regardless of tribe, religion, or state of
origin.
Ejikeme