AI
This is an extremely interesting remark by President Olusegun Obasanjo of Nigeria. Currently, Nigeria with its long history of political corruption and a rising Islamic fundamentalist population accounts for 70 percent of Africa’s oil exports. There is no sweet crude spare capacity anywhere in the world. Nigeria is one of the countries which produce the most desirable type of oil, known as light sweet crude for its low sulfur content. The disruption of the flow of Nigerian sweet crude could be devastating to the United States.
#msg-3104803
What Obasanjo said is "They [the creditor countries] hold the debt over us like a sword, so it has become another means of intimidation and control. We reject it."
Western creditor nations were now using debt repayment as an issue to put political pressure on Nigeria, the biggest oil producer in sub-Saharan Africa.
According to Obasanjo the United States and other Western creditor nations are keeping Nigeria in poverty and exerting political pressure which has to be for their oil.
I also find it interesting that Obasanjo is speaking out when the Chinese Govt is about to help revamp Nigeria’s oil sector.
NIGERIA: Obasanjo offers to step down if creditors cancel debt
© IRIN
LAGOS, 31 May 2004 (IRIN) - President Olusegun Obasanjo, accused by opposition parties of rigging last year's elections to remain in power for a second term, has offered to resign if that would persuade Western governments to cancel Nigeria's US$30 billion external debt.
He said in a speech on Saturday that the debt, on which Nigeria has been charged heavy penalties for the non-payment of arrears, was simply unpayable.
Obasanjo made the apparently joking offer to step down after protesting that the world superpowers were using debt forgiveness as a blunt instrument of foreign policy, rather than as an incentive to good governance.
He pointed out that much of Pakistan's external debt was cancelled after its government allowed the United States to use Pakistani air space during the US invasion of Afghanistan.
He also noted that much of Iraq's foreign debt would be wiped out by Washington and its European allies to placate Iraqis following the overthrow of Saddam Hussein.
Obasanjo said in a speech to mark the fifth anniversary of his election to power in 1999, that Western creditor nations were now using debt repayment as an issue to put political pressure on Nigeria, the biggest oil producer in sub-Saharan Africa.
"They [the creditor countries] hold the debt over us like a sword, so it has become another means of intimidation and control. We reject it," Obasanjo said.
Since his election ended 15 years of draconian and increasingly corrupt military rule, Obasanjo has waged a so far unsuccessful campaign to obtain debt forgiveness for Nigeria.
"Debt relief, debt cancellation is a political, not economic issue,” he said bitterly.
In April Washington cancelled a third of Pakistan’s US$3 billion debt to the US government.
And since the US-led invasion of Iraq in 2003 toppled Saddam Hussein, the Paris Club of western creditor nations and other major international lenders have expressed a willingness to write off a substantial portion of Iraq’s sovereign debt, which runs into hundreds of billions of dollars.
“If the downfall of someone is what it takes, I volunteer to step down if our debt will be written off,” Obasanjo said to loud cheers from the audience.
More than 80 percent of Nigeria’s external debt is owed to the Paris Club, an informal group of 19 permanent member states which usually takes the lead in renegotiating the government-to-government debts of Third World countries.
The remainder is owed to members of the London Club - which negotiates on behalf of private sector trade creditors.
Obasanjo said Nigeria’s original debt stock of about US $10 billion had been paid “twice over” if one included the “penalty for not paying and...penalty for the penalty”.
“This is ridiculous,” he said. “The debt that is being held against us [Nigeria] is unpayable and unsustainable if we really want to have an equitable world.”
According to Mansur Muhtar, head of Nigeria’s Debt Management Office, the Nigerian government has paid out US $35 billion to service its external debt over the past 20 years - more than its present accumulated debt of $30 billion.
Continued debt servicing is directing resources away from badly needed social spending in this country of nearly 130 million people where 66 percent of the population live on less than US$1 per day, according to the World Bank.
A total of US$ 1.4 billion, more than Nigeria's combined budget for health and education, has been set aside for debt servicing in 2004.
[ENDS]
http://www.irinnews.org/report.asp?ReportID=41358&SelectRegion=West_Africa&SelectCountry=NIG....
Chinese Govt to help revamp Nigeria’s oil sector
see also: #msg-3143912
BY GBENGA OGUNTIMEHIN, Abuja
THE Chinese Government has promised to assist Nigeria with a grant of $30 million (about N4 billion) for the development of necessary economic infrastructure and manpower for the country’s downstream oil sector.
Chinese Vice-Minister of Commerce, Mr. Wei Jianguo, who made this known in Abuja at the weekend said his country would provide technical training in oil exploration and technology on yearly basis to further improve Nigeria’s revenue from oil sector.
He, however, expressed concern about Federal Government’s ban on importation of 41 products, which he said, were mostly from China.
Speaking with Commerce Minister, Alhaji Idris Waziri, during a courtesy call, Jianguo observed that both countries being members of the World Trade Organisation (WTO), the rule of the organisation should be followed even as he advised Nigeria to open up her market so that its action would not violate WTO regulations.
Jianguo said he had met the Economic Adviser to President Olusegun Obasanjo and the Group Managing Director of the NNPC, Funso Kupolokun, on the need for a long-term oil co-operation between Nigeria and China, pointing out that his country was ready to transfer its oil exploration technology to boost Nigeria’s oil sector.
He commended Nigeria’s efforts in the health sector, saying that a large consignment of malaria drugs would arrive the country by the end of June.
The Chinese minister said trade volume between his country and Nigeria stood at $1.86 billion as at the end of 2003, while there were 52 Chinese enterprises investing in the country.
He said his country was contemplating investing in such projects as electronics, textile, household utensils and other goods.
Welcoming the delegation, Waziri commended China’s achievement in economic development, assuring that the Federal Government would step up efforts to ensure co-operation between the two countries.
He said government had given priority to economic development in order to eradicate socio-economic problems like poverty, unemployment, HIV/AIDS and under-development.
He explained the ban on 41 products was not to break any trade relations with developing or developed countries of the world like China but to avoid a situation whereby Nigeria was being used as dumping ground for products which could be produced internally.
“No responsible government will put its people in squalor” Waziri remarked, stressing that the rule of WTO people through the NEEDS programme.
He said the market oriented and private sector led economy was actually aimed at improving living standard of the people, and urged the Italian government to use the opportunity to improve her trade relations with Nigeria.
According to Waziri, Nigeria has tremendous natural resources and manpower but needed support from the external world like Italy to be able to further enhance and actualise various economic measures.
He told Ricoveri that Nigeria was not begging for charity but wanted co-operation to move forward and develop at a rapid stage.
Earlier, Ricoveri said Italy realised the various potentials available in the Nigerian economy and was pursuing the needed strategy to establish a long-term economic co-operation with it.
He assured that his country would put in place tangible investment in manufacturing to strengthen the trade relationships.
Monday, May 24, 2004
http://www.dailytimesofnigeria.com/DailyTimes/2004/May/24/ChineseGovt.asp
#msg-3104803
What Obasanjo said is "They [the creditor countries] hold the debt over us like a sword, so it has become another means of intimidation and control. We reject it."
Western creditor nations were now using debt repayment as an issue to put political pressure on Nigeria, the biggest oil producer in sub-Saharan Africa.
According to Obasanjo the United States and other Western creditor nations are keeping Nigeria in poverty and exerting political pressure which has to be for their oil.
I also find it interesting that Obasanjo is speaking out when the Chinese Govt is about to help revamp Nigeria’s oil sector.
NIGERIA: Obasanjo offers to step down if creditors cancel debt
© IRIN
LAGOS, 31 May 2004 (IRIN) - President Olusegun Obasanjo, accused by opposition parties of rigging last year's elections to remain in power for a second term, has offered to resign if that would persuade Western governments to cancel Nigeria's US$30 billion external debt.
He said in a speech on Saturday that the debt, on which Nigeria has been charged heavy penalties for the non-payment of arrears, was simply unpayable.
Obasanjo made the apparently joking offer to step down after protesting that the world superpowers were using debt forgiveness as a blunt instrument of foreign policy, rather than as an incentive to good governance.
He pointed out that much of Pakistan's external debt was cancelled after its government allowed the United States to use Pakistani air space during the US invasion of Afghanistan.
He also noted that much of Iraq's foreign debt would be wiped out by Washington and its European allies to placate Iraqis following the overthrow of Saddam Hussein.
Obasanjo said in a speech to mark the fifth anniversary of his election to power in 1999, that Western creditor nations were now using debt repayment as an issue to put political pressure on Nigeria, the biggest oil producer in sub-Saharan Africa.
"They [the creditor countries] hold the debt over us like a sword, so it has become another means of intimidation and control. We reject it," Obasanjo said.
Since his election ended 15 years of draconian and increasingly corrupt military rule, Obasanjo has waged a so far unsuccessful campaign to obtain debt forgiveness for Nigeria.
"Debt relief, debt cancellation is a political, not economic issue,” he said bitterly.
In April Washington cancelled a third of Pakistan’s US$3 billion debt to the US government.
And since the US-led invasion of Iraq in 2003 toppled Saddam Hussein, the Paris Club of western creditor nations and other major international lenders have expressed a willingness to write off a substantial portion of Iraq’s sovereign debt, which runs into hundreds of billions of dollars.
“If the downfall of someone is what it takes, I volunteer to step down if our debt will be written off,” Obasanjo said to loud cheers from the audience.
More than 80 percent of Nigeria’s external debt is owed to the Paris Club, an informal group of 19 permanent member states which usually takes the lead in renegotiating the government-to-government debts of Third World countries.
The remainder is owed to members of the London Club - which negotiates on behalf of private sector trade creditors.
Obasanjo said Nigeria’s original debt stock of about US $10 billion had been paid “twice over” if one included the “penalty for not paying and...penalty for the penalty”.
“This is ridiculous,” he said. “The debt that is being held against us [Nigeria] is unpayable and unsustainable if we really want to have an equitable world.”
According to Mansur Muhtar, head of Nigeria’s Debt Management Office, the Nigerian government has paid out US $35 billion to service its external debt over the past 20 years - more than its present accumulated debt of $30 billion.
Continued debt servicing is directing resources away from badly needed social spending in this country of nearly 130 million people where 66 percent of the population live on less than US$1 per day, according to the World Bank.
A total of US$ 1.4 billion, more than Nigeria's combined budget for health and education, has been set aside for debt servicing in 2004.
[ENDS]
http://www.irinnews.org/report.asp?ReportID=41358&SelectRegion=West_Africa&SelectCountry=NIG....
Chinese Govt to help revamp Nigeria’s oil sector
see also: #msg-3143912
BY GBENGA OGUNTIMEHIN, Abuja
THE Chinese Government has promised to assist Nigeria with a grant of $30 million (about N4 billion) for the development of necessary economic infrastructure and manpower for the country’s downstream oil sector.
Chinese Vice-Minister of Commerce, Mr. Wei Jianguo, who made this known in Abuja at the weekend said his country would provide technical training in oil exploration and technology on yearly basis to further improve Nigeria’s revenue from oil sector.
He, however, expressed concern about Federal Government’s ban on importation of 41 products, which he said, were mostly from China.
Speaking with Commerce Minister, Alhaji Idris Waziri, during a courtesy call, Jianguo observed that both countries being members of the World Trade Organisation (WTO), the rule of the organisation should be followed even as he advised Nigeria to open up her market so that its action would not violate WTO regulations.
Jianguo said he had met the Economic Adviser to President Olusegun Obasanjo and the Group Managing Director of the NNPC, Funso Kupolokun, on the need for a long-term oil co-operation between Nigeria and China, pointing out that his country was ready to transfer its oil exploration technology to boost Nigeria’s oil sector.
He commended Nigeria’s efforts in the health sector, saying that a large consignment of malaria drugs would arrive the country by the end of June.
The Chinese minister said trade volume between his country and Nigeria stood at $1.86 billion as at the end of 2003, while there were 52 Chinese enterprises investing in the country.
He said his country was contemplating investing in such projects as electronics, textile, household utensils and other goods.
Welcoming the delegation, Waziri commended China’s achievement in economic development, assuring that the Federal Government would step up efforts to ensure co-operation between the two countries.
He said government had given priority to economic development in order to eradicate socio-economic problems like poverty, unemployment, HIV/AIDS and under-development.
He explained the ban on 41 products was not to break any trade relations with developing or developed countries of the world like China but to avoid a situation whereby Nigeria was being used as dumping ground for products which could be produced internally.
“No responsible government will put its people in squalor” Waziri remarked, stressing that the rule of WTO people through the NEEDS programme.
He said the market oriented and private sector led economy was actually aimed at improving living standard of the people, and urged the Italian government to use the opportunity to improve her trade relations with Nigeria.
According to Waziri, Nigeria has tremendous natural resources and manpower but needed support from the external world like Italy to be able to further enhance and actualise various economic measures.
He told Ricoveri that Nigeria was not begging for charity but wanted co-operation to move forward and develop at a rapid stage.
Earlier, Ricoveri said Italy realised the various potentials available in the Nigerian economy and was pursuing the needed strategy to establish a long-term economic co-operation with it.
He assured that his country would put in place tangible investment in manufacturing to strengthen the trade relationships.
Monday, May 24, 2004
http://www.dailytimesofnigeria.com/DailyTimes/2004/May/24/ChineseGovt.asp
Discover What Traders Are Watching
Explore small cap ideas before they hit the headlines.
