| Debt Relief: Myths and Realities |
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| Tuesday, 12 July 2005 | |
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Prologue I wish to recall a statement credited to Chief M.K.O Abiola to the effect that if you ask a lawyer and an accountant a question or you present a problem to the duo, the lawyer will give you an immediate answer whereas the accountant will ask for time to research the problem. He concluded that the accountant usually give a better and more effective solution. My understanding of this simple statement is that professionals should exercise caution when giving opinion on any matter especially in the public domain. This does not mean that a commentator, even after having exercised caution will be right all the time, but the fact that a disciplined and identifiable approach has been adopted will reduce the extent of collateral damage to the character or professionalism or both. Therefore, due diligence protects the professional to a large extent. Immediately after Prof. Charles Soludo announced the banking reforms an economist in Nigeria became the instant "beautiful bride" (to quote the great Zik) of the Nigerian press. The press was a wash with the criticisms of the reforms especially as they relate to the N25billion capital base. A review of those criticisms in the light of the reality on the ground today shows that the economist spoke too soon. The reality today is that a well-capitalized bank needs not rely anymore on public sector funds for their operations. An enlarged capital base also has several advantages but that is not the focus of this essay. Then on Saturday 9th July, 2005 on Sunrise (Channels TV) the same economist commented on the debt relief recently granted to Nigeria by her creditors. He posited that Nigeria begged her creditors; the national ego was at stake and that there was no relief because the modalities were not yet worked out and agreed. The interjections of the DMO (Debt Management Office) official, who of course was at various meetings with IMF and other creditors did not matter. THE MYTHS It will appear that there are no barriers to criticism of government policies and achievements. At every turn sentiments, cynism, etc are employed in public criticism of government such that at the end of the day, the important issues are left unattended to. Intellectualism or respect for professionalism is usually the first causalities in this business of criticism. The myths surrounding this debt relief matter include: - · National pride or ego· Nigeria is a beggar nation· No relief was granted, the government is lying· IMF and Paris club are yet to assent etc. THE REALITIES My first reaction to this debt matter was to ask the question, in reality is Nigeria owing? This produced other thoughts:· The debts were not inccured by the present administration.· Should Nigeria continue to service a debt for which there are no projects on the ground to create value or benefit to the people· Should Nigeria continue to service debts, which have substantially translated to private investments in the creditor nations' banks?· Should Nigeria continue to allow herself to be bogged down by loan covenants (e.g. IMF conditionalities) that are harmful to her economy and economic independence?· Nigeria has serviced the debt over a period of time. It is universally accepted that states and federal government in the past recklessly obtained the loans and that some people corruptly cornered the proceeds. So if this is the case, are we saying that we should not seek an end to this slavery via debt relief? To assert that Nigeria is begging for debt forgiveness is to display a misunderstanding of banking practice. No begging takes place in a bank. In a bank you negotiate based on facts and figures. Even in the local banks, interest waivers and other such reliefs are granted on a daily basis. There are also arguments to the effect that past leaders should be probed and the stolen funds should be recovered and applied to the settlement of the foreign debts. Apart from the intricacies involved, which may not meet short to medium term objectives of freeing Nigeria from the shackles of foreign creditors, the recent refusal of the Swiss government to repatriate Abacha loot is an indication of what might happen eventually. Finally I want to congratulate, like may others the achievements of our president Chief Olusegun Obansanjo and his team in this regard- wining economic independence for Nigeria after 45 years of political independence. And to the critics, please apply caution so that your credentials will not be questioned. However, this does not mean that one is trying to muzzle opposition. Far from it. But criticisms should be intellectually formulated so that they can act as the foundation for improvement and not retrogression. EPILOGUE THE HOLY BIBLE: Exodus 3;8 "And I am come down to deliver them out of the hand of the Egyptians and to bring them up out of that land unto a good land and a large, unto a land flowing with milk and honey.." (Also Exodus 6: 6-7 Exodus 14:12 “Is not this the word that we did tell thee in Egypt saying let us alone that we may serve the Egyptians? For it had been better for us to serve the Egyptians than that we should die in the wilderness”: THISDAY SUNDAY 10TH JULY, 2005 SUNDAY COMMENT LAST PARAGRAPH: "That Nigeria is now in a position to contemplate an escape from the strangle-hold of the Paris Club is an affirmation of the presidentÂ’s economic and diplomatic sagacity. We salute his extraordinary tenacity of purpose to end Nigeria's debt peonage despite widespread cynicism and disparagement of his efforts by critics. That is the stuff of leadership: PASTOR AIYEDOGBON: OVERCOMING SLAVERY MENTALITY: David captured prophetically the response of God when people began to imagine vain thoughts, rage and take counsels against the purposes of God Psalm 2: 1-5. A person does not change his or her pattern of thinking and the things that are being constantly imagined, no one can change such individuals. And no matter what God may plan to do with or for an individual or a people, if such an individual or people choose to change their hearts, God cannot help them further. It is in the light of these realities that we see the need for God to first change the slavery mentality that His people had under the bondage of the Egyptians before attempting to take them to the promise land. Until the mentality of the people will change from that of victimized slaves to that of a victorious peculiar people, there is no possibility of bringing them out. Thank you. Taslim Anibaba (FCA) 11th July, 2005 N.B Comments are welcome at tanibaba@nigeriavillagesquare.com . If you identify with this piece please send to as many people as you can.
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Posted by Robot| 12.07.2005 00:00