Crude oil asking price per barrel in the
international market is reported to have slumped far lower than the budget
projection of a little over $75 USD. This, coupled with the unfortunate
scenario of the United States of America not buying Nigeria's huge crude oil
exports are said to be the major fear factor why Nigeria's external reserves
have plummeted to an all time low since 1999.
Nigeria's minister of Finance and coordinating
minister of the Nigerian economy Professor Mrs. Ngozi Okonjo-Iweala was at her
wits best the other day when she briefed the national parliament and she raised
the issue of imminent economic crunch that may befall Nigeria unless in her
words we learn to do belt tightening in the way we live as a nation. The
coordinating minister for the Nigerian economy is one fortuitous Nigerian
public officer that can be said to have seen it all in the area of managing the
nation's economy in the last quarter of a century given the fact that she has
remained consistent like the Northern star in the Nigerian political firmament
since early 2003 or so when she was 'borrowed' by the then Chief Olusegun
Obasanjo-led administration to head the ministry of Finance before been
reshuffled to the less fancied ministry of foreign affairs which led to her
exit but again emerged as the minister of finance under the current
dispensation since the current President became Acting President in 2010 and
then was reappointed after the current Head of State and Head of government Dr
Good luck Jonathan won election for his first full four year tenure since 2011.
In her first stint as the finance minister, she
was credited with the role of moving Nigeria away from the notorious club of
the heavily indebted nations when she negotiated what she called soft landing
with the Paris Club and the London Club which led to the waiving aside of a
huge chunk of the so called foreign debts that was accumulated although through
fraudulent methodology by successive administrations. By and large, Nigeria
paid out over $12 billion USD at once leading to the debt forgiveness of the
other segment of the then over $35 Billion USD. Well, the decision by the then
Obasanjo-led administration to pay out such a huge chunk of foreign denominated
cash to these so called Western creditors met a huge uproar of criticism from
some quarters who felt that Nigerians have been short-changed given the fact
that first the total package of Nigeria's external indebtedness was not clearly
and transparently audited to determine how they came about. Besides, economists
and analysts believe that it was not a good business model to pay off such huge
chunk of cash by a nation with over eighty million poverty stricken populace
out of the little over 140 million population. Those analysts and economists
had reasoned that Nigerian government would have used the huge cash to fix the
nation's dilapidated and collapsed infrastructure such as the national roads networks
and other vital infrastructure which they said would have boosted the domestic
economy and put Nigeria in the steady rise to a developed economy that can
easily pay off the foreign debts that were transparently determined and
reconciled.
Be that as it may, the current minister of
finance and coordinating minister for the economy would be the last person to
entertain that kind of criticism for a decision she considers as one of her
finest contributions towards making Nigeria to become a reliable international
partner in the comity of nations and which according to her has also made
Nigeria a credit worthy ally of the World Bank and the International monetary
Fund two of the Bretton wood institutions she has spent the better part of her
working career as a senior level official and technocrat. In her current
political journey as the minister of Finance and the coordinating minister for
the Nigerian economy, Mrs. Okonjo-Iweala has nevertheless literary swallowed
her pride so to say and has led Nigeria steadily back to the notorious club of
debtors because gradually Nigeria's foreign debt profile has began the
dangerous upward swing to such a height that majority of Nigerians are now
unable to afford even a square meal per day because the different levels of
government have completely abandoned their statutory role of providing the
needed socio economic infrastructures to make life meaningful and constructive.
If I may ask, why did the current minister of finance preside over two
diametrically opposed policies of paying off the nation's debts and a little
over three years to have gone back to our 'vomits' to began the building up of
additional foreign debts profile which will invariably enslave two generations
after us? The answer to the above poser is not the reason why I am penning this
piece but the reason is that this same minister of finance has again raised
national alarm that the steady collapse of the global crude oil price means
that ordinary Nigerians should embark on the so called belt tightening measures.
Is it not clear to even the blind that most Nigerians have lost
their shape to the biting hurricane of poverty sweeping across most homes
and therefore it is foolhardy to ask any of these poverty stricken Nigerians to
tighten their belts when they literary have no waist to even put on these
belts?
I sincerely believe that the reasons Nigeria is
broke is not because the price of crude oil per barrels have collapsed in the
international market nor is the reason for our sudden financial insolvency as a
nation resulted from the lack of patronage of our crude oil by the United
States who have found shale oil in commercial quantities as alternatives to our
crude oil. The major reason for our being broke now as a nation is because of
over bloated political class and the unprecedented quantum of cash that goes
into servicing them. Why for instance have we failed as a nation to amend the
constitution to specifically state that Nigeria does not need more than ten
ministers? What is Nigeria doing with over forty ministers some of whom simply
move from one state to the other masquerading as public office holders and
costing Nigerian tax payers hugely in wages? I doubt if the United States or
China with all their heavy wealth as developed nations have the high number of
federal cabinet level officials that Nigeria currently parades. The federal
Government must cut down wastages and close all avenues for wastages that
currently exists in government at all levels. Government must create the policy
and legal frameworks to make it punishable with heavy judicial sanctions such
things as engagement of civil and public servants in activities that deplete
the resources of Nigeria such as foreign medical trips. There is even this
legendary issue of lack of transparency in the extractive industry in Nigeria
even as corruption in public procurement regime is massive. What has
happened to the $20 billion USD some itching fingers in NNPC allegedly
stole over twelve months now?
If we want to do belt tightening of the Nigerian
economy to face the emerging economic realities then we must amend the Nigerian
constitution to reflect that we need not more than ten ministers and that
these ministers must not engage more than a staff as a technical person and
that each of these ministers must be drawn from relevant fields of study and
the statutory mandates of these ministries so they do not have the reason to go
fishing for jobs for their boys. The next reason we are broke is our
wastefulness and our possessiveness by the ghost of consumerism and our lack of
productivity. We must as a nation stop this ugly appetites of consuming
everything foreign and behave like the Chinese who have developed their
domestic economy borrowing from the best technologies that can be found in all
parts of the World.
Secondly, if we are to concede to the new gospel of Mrs. Okonjo- Iweala that we need belt tightening measures then we must task this government to stop forthwith the retrogressive practice of reckless issuance of import waivers to politically favoured sons and allies. Why for instance has few individuals enjoyed waivers to import commodities as easily produced as sugar when it is known that Nigeria is so resource rich that there are states that are heavily endowed with raw materials to manufacture sugar in commercial quantities?
Then again, in the area of justice delivery why
is it that sensitive economic related cases are compromised on the alter of
nepotism and cronyism by the judges and there is weak legal framework for
punishing these corrupt judges? A nation with this kind of weak, compromised
and corrupt justice sector will find it almost impossible to attract good
foreign direct investors who would play by the rules and create a good business
environment that would boost job opportunities and productivity on the side of
the populace. Again, why is it that Government compromised in the execution of
the privatisation exercises in key economic sectors to an extent that after
government sold out the vital electricity power plants built over the years
with public fund running to their billions of dollars at very give away prices
to mostly the cronies of some top government officials? Why is this same
government playing around with the voodoo policy of raising funding assistance
to these same new owners of the power plants who ought to have mobilized
private and independent funds to developed and expand their business and
services to the members of the public? A nation that auctions its hard earned
economic assets to a few rogue elements and turns back to raise funds to these
parasites will inevitably become broke because there is no economic wisdom in
so doing. To the minister of Finance please let her know that three factors
have made us poorer as a nation namely- corruption; wastages by public office
holders and thirdly on the side of the followers the appetites for consumptions
of anything foreign are contributory and we must collectively exorcise these
ghosts to regain our economic freedom as a sovereign entity.
17/11/2014.