34B DOLLAR DEBT, 20B DOLLAR RESERVES, DEBT FORGIVENESS AND SLAVERY! (READERS’ VIEWPOINTS) 28032005

The article on the Nigerian external debt burden has continued to generate tremendous interest amongst our readers.  This week’s edition of ‘Rational Perspectives’ seeks to have some of our readers’ viewpoints and our own comments on some of the issues raised.  Pleased read on…

Dear Lles,

It pains me greatly when those with interest in, and opinion on, Nigeria's debt methodically avoid one aspect: the lender-countries share in their banks 170B dollars cash-loot--looted from the Nigeria treasury, deposited into those accounts by, a handful of Nigerians. The looters are known. The locations and exact amounts of their stash are known even to various international agencies.

What would happen if the busy writers got above the din of the keyboard, challenged the establishment, and made substantive and practical recommendations such as:

Lenders: collect your debt from the 170B dollars; include the cost of collection; and return whatever is left--if any--to Nigeria?

It is clear that debt-forgiveness rewards these looters, who are even so brazen as to now institutionalize financial pillage--in the Senate, National Assembly, the Police, the political parties.

None of the masses and commoners suffering and dying in Nigeria would benefit from any debt forgiveness; there is not a chance of that, and you all know it. However, recover the debt from the looters' loot, and they, the looters, will feel the pinch. Also, the lender-countries would have to re-examine their own morality and conscience if this exercise were to proceed, forcing them to admit that they are part of the conspiracy that is killing the common African, African victims of highly-placed thieves and these countries who knowingly store and protect the illegal acquisitions while at the same time levying a huge debt burden on the same hapless.

I do not want to write more. It is too painful to continue with the obvious. 

Oguchi Nkwocha (oguchi@mbay.net)

 

Dear Mr. Nkwocha,

Many thanks for your mail.  I feel your pain; however, I will advise that we should not let anger prevail on our judgement. 

Your proposal certainly has merit, but the inherent bureaucratic procedure can only make it a medium to long term approach, during which time the debt burden will be further compounded!  However, what is clear is that we need a coherent and comprehensive debt management strategy, which includes proposals such as yours in its framework.

The dollar burden of our peacekeeping roles in West Africa and the Sudan and the ‘morality’ of the impediment caused by the huge penalties on default payments on poverty alleviation should be part of our integrated strategy for relief of our debt burden.  Fortunately, the rising value of our crude oil reserves and a market of about 150m consumers can also ensure that we can bargain on a firm footing as a potential world power and not as a highly indebted poor country (HIPC).

Best wishes,

LLES LEBA

Dear Lles,

Your above subject article published in Monday, February 28, 2005 Rational Perspectives  Lles Leba Vanguard refers.

I wish the second Option as articulated in the paper could be made available to the Presidency as the dollar is depreciating vis-à-vis Euro/Pound Sterling....A stitch in time saves nine. If current default of $13billion is paid off then the better the economy and the greater the opportunity for overseas investment to flow into the country before the Reserve of $20 billion is misappropriated!

 

Nigeria is a great country with great potential for industrialization. Please let’s see how the Presidency could be persuaded to alleviate the debt burden and use the rest of the reserve to develop the Nation and ease out the poverty level of our beloved Nation.

God bless 

 

Olaniyan (tundeolaniyan2000@yahoo.com)

Texas, USA

Dear Mr. Olaniyan,

I thank you for your mail and your appreciation of the content of our article ’34B DOLLAR DEBT, 20B DOLLAR RESERVE, DEBT FORGIVENESS AND SLAVERY’ 

Indeed, I agree with you that we have tremendous potential for the development of our country, but it would seem that the authorities who  dictate our destiny are so involved in selfish pursuits that it is very difficult for them to see or do things which will improve the welfare of our people.

Indeed, a colleague and I had made presentations on alternative ways of getting out of our economic quagmire to various agencies of government, but we were truly amazed at some of the responses we got.  You may wish to read some of these responses in some of the early articles published in our column ‘Rational Perspectives’ with particular reference to “HOW THE CBN ENGINEERS POVERTY IN NIGERIA” and you may also want to read our paper titled “A LIBERALIZED FOREIGN EXCHANGE MARKET: A proposal for a Liberalized Foreign Exchange Market in Nigeria and its Economic Benefits”.  These articles are available at the following web address:  www.betternaijanow.com

Yours,

LLES LEBA  

Dear Mr. Leba,

I greatly appreciate and enjoy reading your very important article on the Nigerian debt. However, I think there should be another option to be included in your well articulated suggestions.  This option is offering the debtors a percentage of the debt-say 30 cent to a dollar - take it or leave it like Argentina is doing.  After that we should tie any other external borrowing to strict supervision of the borrower by international financial institutions for some years to come.

 

Since I believe you're more versed in economics than I am, it would be nice if you can expand on these suggestions and send it to our able Minister of Finance or Deputy. I am confident they would listen.  You can then publish the open letter to them. You're doing Nigeria a great service.

 

I thank you.

 

Malomo Ajibola (Joeajibola@aol.com)

Dear Mr. Ajibola,

I thank you for your mail in response to the article in our column ‘Rational Perspectives in the Vanguard of 28/2/05, and your suggestion of a third option akin to the current Argentinean approach.  I agree that this approach should also be plausible; indeed, I recall that Nigeria had adopted a similar approach in the Abacha years with the debt buyback scheme, but you may recall the scam associated with its operation and the indictment of the then Minister for Finance and some heavy weights and members of the Abacha family with particular regard to debts owed to the Russian Consortium for the Ajaokuta Steel Project.

 

In any event, the Argentinean approach is mainly applicable to government bonds rather than trade debts as in the Nigerian case; most of our trade creditors see Nigeria as a big and rich giant who is not very bright upstairs; as the Sierra Leoneans would say “Na money Nigerian man get plenty, but he no get plenty sense” and they are unlikely to let go of their golden goose especially with the huge value of idle external reserves, which we currently have.

 

It is puzzling that our National Debt Management Office continues to raise their hands in bewilderment at the unrestrained and rising value of our national debt in spite of potential options which are available.  Indeed, it is worrying that the debt management office is made up of people whom one would otherwise have described as enlightened men with fine intellect from a background of first-class educational institutions worldwide.  I wonder!

 

Thank you for your mail and God bless.

 

LLES LEBA

Dear Lles,

I wish the people in government will be reasonable enough to think about those options you suggested for the Debt case. The reality is that self survival by corruption has spoiled our leaders and unfortunately Obasanjo seems to be slow in facing the reality of the matter. 

I recall the issue of 12 billion dollars that vanished during the IBB regime and our inability to recover anything from this loot!

It is awful and very shameful when such cases exist and we are busy talking about debt forgiveness. 

It is a shame when you see the number of Nigerians coming to seek asylum here in Ireland with different claims to support the bogus moves they are making.  This has spoilt the image of the Country here beyond recognition. Unfortunately the corrupt practices do not just end within the shores of Nigeria, in fact some stinking practices of the Nigerian Embassy here have attracted media attention and every time they mention it on the news I feel sad.  The most shameful thing is that the thieves are the leaders of the society!  Obasanjo seems to have good ideas but implementation is very defective!

Cheers, 

Omojola Oyeyemi Fredrick (omojay@hotmail.com)

Dear Frederick,

Many thanks for your mail and your very kind wishes. Nigeria is a great country, abundantly blessed in every respect and it is my prayer that the peoples of our country should recognise and benefit from our natural wealth, so that our children are not forced out of this country by economic pressures brought about by lack of knowledge and corruption.

My kind regards,

LLES LEBA (llesleba@hotmail.com)