SHOULD NIGERIA GET A $3 BN LOAN?

Nigeria struck the black gold jackpot in 1956 when oil was discovered in a small village called, Oloibiri. Nigeria soon became a heavyweight in the oil market, dominating as the top African producer of crude (until Angola briefly stole the 'King of African Crude' crown) and the 8th largest producer of oil in the world.

According to IMF estimates, Nigeria made over $300 billion since the 1970s from the sale of oil. But, rampant corruption and theft left the nation with little to show for the oil wealth but poverty and incredible debt. Although penalties and late payments forced the country's debt to reach $35 billion in the 1990s, in 2006, Nigeria became the "first African nation to settle with its official lenders" when it arranged to have most of its debt erased by the Paris Club. Nigeria went on to create a plan that allowed it to pay off its debt and has steadily kept its debt low ever since. According to the CIA, Nigeria's debt accounts for only 14.40% of national GDP, in comparison to countries like Zimbabwe (218%), the U.S. (60.8%), Ghana (58.5%), the U.K.(43.6%) or South Africa (31.3%).

A LOAN IN THE WORKS?
The World bank has offered a 3-year, $3 billion loan for Nigeria's crippled infrastructural facilities via its International Development Assistance program. This loan would push the nation's foreign debt portfolio to $6.5 billion. However, it is not quite clear whether Nigeria has accepted the loan, which amounts to N315 billion, or is merely in talks with the World Bank. According to the Daily Independent Newspaper,

"The Sustainable Development Sector Manager of the World Bank, Semeon Ehui, announced in Abuja last week that the facility comes with zero interest rate.

He said the loan would not add any burden to Nigeria, but stressed that one of the conditions is that projects such as education, health, roads and agriculture get priority because of their importance to the economy at all levels"

THE REACTION
The possibility of a World Bank loan has raised the ire of various interest groups and members of the National Assembly. NGOs like Human Rights Writers Association of Nigeria (HURIWA) criticized the loan, and condemned the

"governments' decision to take the loan facility at this time without conducting referendum to find out from Nigerians whether we are prepared for another enslavement by the World Bank."[sic]

HURIWA went on to suggest,

"It is logically wiser to take from Nigeria's foreign reserve some good amount of money to transparently and equitably fix our dilapidated infrastructural facilities ... instead of opting to take a loan that will attract commissions under surreptitious guises and which will in future return Nigeria to a near-pariah status as a heavily indebted nation..."

Members of the National Assembly have also come against the loan. On November 14th, the House passed a resolution "to pressure the government to reject the offer of a $3 billion World Bank loan." It also directed the Joint Committee on Finance and Appropriation to advise the government on the consequences of the loan.

MY THOUGHTS
Only last week, Nigeria's foreign reserves inexplicably rose from $58.4 billion to $59.7 billion. Nigeria's Central Bank did not explain the rise in reserves even though those reserves had "dropped consistently in the past few months as a result of lower crude oil prices in the international market."In fact, Nigeria has the third largest reserves in Africa, behind Algeria and Libya. This recent increase in foreign reserves also means that Nigeria is ahead of Saudi Arabia, and maybe even the United Kingdom in terms of reserves of foreign exchange and gold according to the CIA.

Considering the foreign reserves, does Nigeria really need to take a $3 billion loan?  I am no financial specialist, but I do not believe the risk is worth it. Although the loan is interest free, it comes with a service charge and non-utilization fee of 0.5% and 0.7%, respectively, with up to a 40 years repayment period. Therefore, if, as has been the case in Nigeria's past, that loan is not used as directed but pocketed by those in charge, Nigeria's children will be stuck paying back a loan they never benefited from. It would be much different if the World Bank loan was for a much larger amount, then it could make sense to leverage that money for domestic infrastructure and anti-poverty projects.

Although the World Bank spokesman, Ehui, also said that "The loan has been offered to Nigeria because of the massive improvement in the economy", I can't help but wonder - Who gives a loan with zero percent interest? Sounds like a car dealer trying to get rid of last year's models and I'm just not buying it. I'd rather Nigeria get a loan from its certified billionaire, Aliko Dangote. But, he's only worth about $3 billion. Maybe if we hadn't given Bill Gates so much trouble to get a visa last year, he would have been willing to lend us some chump change.



Related Articles of Interest:
- Nigeria's Sovereign Wealth Fund
- African Finance Corporation
- Should Yar'Adua Get A Pay Raise?
- How To Become A Millionaire
- Excess Crude Fund Depleted
- No Longer King of Crude
- Nigeria's Oil Expiration Date Draws Near

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EXCLUSIVE: EMEKA ASIWE HAS BEEN RELEASED, BUT...

I can now confirm that Emeka Emmanuel Asiwe, the owner of huhuonline.com, has been released from SSS detention. Asiwe was arrested on October 28th. Unfortunately, like fellow Nigerian blogger, Jonathan Elendu, he is not allowed to leave the country and return to the United States, his country of residence.

This, no matter how small, is good news.

Now, all that is left is to get the likes of Asiwe and Elendu their freedom to actually leave Nigeria.

Read more!

YAR'ADUA ARRESTS NIGERIAN JOURNALISTS

The fallout from the Leadership's "Yar'Adua Sick Again" article continues.

Apparently, "[i]n keeping with his commitment to upholding the rule of law at all times," Nigeria's President, Umaru Musa Yar'Adua, had publishers and editors from the Leadership paper arrested. They were arrested by the police less than 24 hours after they had been interrogated by the SSS who in the recent past, shut down and arrested the journalists at Channels TV in September, arrested Nigerian political bloggers Jonathan Elendu (who cannot leave Nigeria) and Emeka Asiwe (who has not been heard from since his arrest in October).

Prior to the arrests, the editors and journalists at Leadership Newspaper were interrogated by the Inspector General of Police, Mike Okiro, who 'invited' them to police headquarters in Abuja. The journalists were then also 'invited' by the SSS, which reports directly to the President, for further interrogation over the course of several days.

IS NIGERIA A POLICE STATE?
It is curious that a President who fashioned himself around a "rule of law" mantra upon entering office a year ago, now has the Police and his security agents at the SSS, interrogating and arresting journalists over a story that has nothing to do with national security but merely his health. This action by the administration is simply one of many that suggests that Nigeria is not a democracy and not even pretending to be. In truly democratic nations, when journalists make mistakes, they retract their errors, provide public apologies and are then dragged to court to defend defamation challenges when the publication's error negatively impacted an individual/organizations character and maybe livelihood. Considering the fact that Yar'Adua threatened to sue the newspaper already, and apparently has that option, these arrests are an unnecessary show of undemocratic force.

Reacting to the arrests, Festus Keyamo, a lawyer in lagos, aptly said,

"[This is] the latest ... intolerability displayed by President Umaru Yar’Adua's administration towards the Press.

Not long ago, we witnessed the unjust closure of Channels T.V, ... [t]he recent arrest and detention of Jonathan Elendu and [Emeka] Emmanuel Asiwe, both on-line journalists, is still fresh in our memory.

Their offence(s) have not been made known. They were not charged to court...[and] a popular programme on A.I.T, ... Focus Nigeria, has been proscribed by the Federal Government.[sic]

The irresistible conclusion we can draw is that the Yar’Adua administration has refused to be an Open Regime where the flow of information is always guaranteed, leading to all kinds of speculations by the Press."

THIS IS 'RULE OF LAW' DEMOCRACY
Yar'Adua's draconian measures are also unconstitutional. The freedom of the press is a guaranteed right and it applies even when the press makes mistakes. None of this would have been necessary if, as I have suggested in the past, the President simply gave the public the truth (or some version of it) about his health condition. Then, the press would not have to do its job and search for information on that topic and of course, the administration would not be so defensive about the issue.

But, apparently in a "rule of law" democracy, the press can be shackled, citizen journalists like Elendu and Asiwe can be made to disappear and constitutional and human rights can be infringed upon with abandon. Hopefully, Nigerians did not sign up for that type of democracy and will encourage Yar'Adua to rethink his recent undemocratic actions for the betterment of Nigeria and the people.


Please read Reporters Without Borders 2008 Annual Report on Nigeria. Apparently, Leadership Newspaper is a constant target by the SSS and Yar'Adua administration. Very disturbing...


Related Articles of Interest:
- Yar'Adua To Sue Nigerian Newspaper
- Channels TV Shut Down By Yar'Adua
- Yar'Adua And The Continuing Heath Issue
- The Consequences of Yar'Adua's Mysterious Health
- Suppression In A Democratic Regime
- Nigerian Blogger Arrested

Read more!

YAR'ADUA TO SUE NIGERIAN NEWSPAPER

On November 8th, Leadership Newspaper's lead story was titled "Yar'Adua Sick Again" and it alleged that the President had missed certain events due to health matters. The newspaper also stated that doctors were flown in from Saudi Arabia on his behalf. The following day, Special Adviser to the President on Media and Publicity, Olusegun Adeniyi, announced that Nigeria's President will sue Leadership Newspaper for libel. According to Adeniyi,

"In keeping with his commitment to upholding the rule of law at all times, Yar'Adua has directed his lawyers to take appropriate legal action against the Leadership newspaper...

There is no truth in the entire report ... the only reasonable conclusion is that the publishers ... ran the report ... to embarrass the President and destabilise his administration. [sic]

The truth is that the President is in good health and has been attending to all his official duties in full view of the media in the past week"

This announcement resulted in an immediate public apology from Leadership Newspaper. According to a Daily Trust report, Leadership's publishers stated,

"...portions of the lead story carried yesterday ... did not meet the standard we have set for ourselves as a newspaper. Having taken a second look ... we can understand the concerns of the Presidency and therefore sincerely apologise...

That mix-up does not suggest, however, that we have been working in alliance with any person or group or party that does not mean well for our president or our country."

MY THOUGHTS
Yar'Adua has every right to sue anyone who defames him or his character. Clearly, Leadership Newspaper has retracted some of its report and admitted that its article, "Yar'Adua Sick Again", was not entirely factual, thus furthering any libel case the President might have against the publication.

If this were a perfect world, however, two crucial things would have happened.

1. As soon as he became President,Yar'Adua would have told the nation exactly what was/is/might be wrong with his health. That, coupled with Nigeria's fervor for religion, would likely have endured the public to him, forcing most to pray for him and defend him from any further discussions about his health.
2. Upon being upfront with the people, he would have sued the first publication to then print untruths about his health instead of shutting down Channels TV and arresting bloggers like Jonathan Elendu and Emeka Asiwe (who has been missing for over 2 weeks).
   

Granted, hindsight is 20/20, but had these two things happened, there would be little need for the President to respond to rumors about the condition of his health this late into his presidential term, especially as there are other important matters that he must deal with such as establishing his cabinet (which was recently dissolved) and addressing the myriad of issues Nigeria faces. Of course, there will always be detractors, but by sharing a personal issue with the greater public, Nigerians would more than likely defend him and squash political opportunists who try to use his health as a divisive issue.

Additionally, I must confess that I am turned off by Adeniyi's accusation that Leadership Newspaper was attempting to "destabilise"[sic] Yar'Adua's administration. While that might be true, it sets an unhealthy precedent when a democratic government publicly makes general accusations that it in turn does not butress with further evidence. This is not the first time those close to Yar'Adua have accused others of trying to undermine the government. In fact, it seems to be a recurring refrain from those in power right now and that is dangerous in a nation that has seen many dictatorships and is struggling to gain a true democratic footing.

Finally, I must highlight one more statement shared by Adeniyi on behalf of the president.

"While Yar'Adua fully believes that a free and unfettered press is essential to the growth and entrenchment of democracy in Nigeria, he is equally of the view that the propagation of spiteful and malicious falsehood must not be allowed to become an acceptable weapon of political opposition in our country."

I completely agree with the sentiment above and thank God that courts are best equipped for dealing with defamation cases. However, I must remind the president that 2 bloggers were recently detained and accused of everything from treason to money laundering. They are yet to be charged with any crime even though their characters have now come under question and they are not free. I must also emphasize that although spiteful and malicious falsehoods can have legal consequences, the freedom of speech and expression by average Nigerians and especially bloggers and citizen journalists is a universally accepted right that should never be suppressed particularly in a democratic nation. Consequently, I repeat my call for Jonathan Elendu to be given his travel documents so he can return to his wife and child, and that Emeka Asiwe be released from SSS detention so he can as well return to his family. Or, do we want to add the following to the growing global ideas about what kind of country Nigeria is -

"It looks like Nigeria isn’t any nicer than China when it comes to dissenters and blogs."

It could be, if we aren't truly committed "to upholding the rule of law at all times."


**If, for any reason, the original Leadership story becomes unavailable, I have a copy and can make it available, when necessary.


Related Articles of Interest:
- Channels TV Shut Down By Yar'Adua
- Yar'Adua And The Continuing Heath Issue
- The Consequences of Yar'Adua's Mysterious Health
- Suppression In A Democratic Regime
- Nigerian Blogger Arrested
- Turning Away from Democracy

Read more!

CONFRONTING A CULTURE OF BRUTALITY & INJUSTICE

In the aftermath of Uzoma Okere's violent assault at the gun butts and horsewhips of Arogundade's men, Nigerians have reacted with outrage that a young woman could be treated like an animal. The internet has proven to be the main forum for young Nigerians to discuss Uzoma's situation and advocate justice for her. I congratulate every Nigerian and non-Nigerian that has taken the time to think about what happened to Uzoma and spoken up in her defense.

We now know that Uzoma is suing for N100 Million and that she is popular enough to even run for political office sometime soon. Yet, the question remains, when this story dies down and fades away from our immediate consciousness, would Nigeria have changed? Yes, the military and its 'ratings' will think twice before they assault any person again. After all, they have no clue who is recording their actions on a cell phone camera. Maybe public officials will think twice about stealing public money because, someone might take photographic evidence and put it on CNN. However, overall, will our collective attitude towards each other have changed? If it doesn't then Uzoma's assault, the resulting outrage and any positive achievements will not have a long term effect.

In the past, I have argued that many Nigerians believe that the poor are to blame for their poverty. I have also posited that the Nigerian psyche is currently in a state of Persistent Psychological Paralysis, thus, creating some difficulty for Nigeria's future. But, one aspect of Nigerian behavior that I am yet to confront on this site is the culture of brutality and injustice that exists in the country. The treatment Uzoma received is simply a drop in the sea of violence that exists in Nigeria. We, as Nigerians, might not want to address this reality, but until we do, no amount of outrage towards Uzoma's situation will prevent another innocent Nigerian from suffering a similar fate.

ON BRUTALITY
From my experience, almost anyone in Nigeria can be the victim of a violent assault and their aggressor doesn't even have to wear a uniform. Think about the house maids and house boys you have seen maltreated by their 'oga' (boss). Think about the lowly office employee who might have been at the tail end of a verbal assault because he didn't stand up quickly enough to "greet" someone. Think about the useless area boys who use their numbers and strength to demand payments/bribes from the average citizen just to cross the street. Remember in July 2007, when Lagosian ladies were detained for "dressing indecently" and just think about what would happen to a homosexual in Nigeria. I don't think I need to expand on that.

Abuse is far too common, from the man who hits his wife, even to the teachers who exceed their disciplinary role when they punish some of their students. Violence should never be condoned, whether it happens to the daughter of the Sergeant-At-Arms of the National Assembly or the child of a market woman. How do we, as a people, ensure that all citizens will be treated equally under the law and protected from random acts of violence and brutality?

ON INJUSTICE
Take a look at Nairaland, one of the most popular online forums were Nigerians discuss matters, and you will see that the members are openly mocking any idea of a real investigation by the Navy and Senate into Uzoma's assault.Why? Because Nigerians are used to injustice and consider it the norm. Many Nigerians believe that once "brown bags" pass hands, (in)justice will be served. It is a shame that in a democracy, this is Nigeria's reality, far often than not.

In Nigeria, unfortunately, if you are not connected and do not have the luxury of wealth, justice is not a concept that you can understand and/or expect. If there were a modicum of justice in Nigeria, I and those who care, would know where Emeka Asiwe is. Emeka Asiwe is a Nigerian blogger who has been detained by the SSS since November 1st and, as far as I know, he is yet to be heard from and has not returned to his family in Massachusetts.
LET US CHANGE THE COLLECTIVE ATTITUDE
We, as a people, cannot forget that theoutrage expressed by average citizens is not just about Uzoma. The disappointment I feel is not just about Emeka Asiwe or Jonathan Elendu. This growing and natural reaction must be about the countless, nameless Nigerians whose story we will never know, but who have been the victims of brutality and injustice at the hands of their own countrymen, in uniform or not. Nigeria's attitude towards people, must change. Differences in class, tribe, religion, sexual orientation do not matter and should not affect how we treat each other. No one person is better than another. We have to put a stop to the culture of brutality and injustice and end the silence that fosters such attitudes. Maybe Uzoma's case will be the first step towards a change in the collective attitude. But, no matter what, we can't forget the bigger issue - confronting the culture of brutality and injustice. That is essential for any nation and its people to excel.


Related Articles of Interest:
- A Window Into (In)Justice: Uzoma Okere Updates
- When Nigeria's Military Attack Citizens
- Turning Away from Democracy
- "Free Jonathan Elendu Now!"

Read more!