"Nigeria is Poor, O!" says President Obasanjo

culled from The Guardian
November 14, 2003

Nigeria is poor, says Obasanjo
From Madu Onuorah, Abuja

PRESIDENT Olusegun Obasanjo yesterday painted a gloomy picture of the nation's perceived wealth, saying that Nigeria is really a poor country.

In an audience with a delegation of Agbor Kingdom led by the Dein of Agbor, Keagborekuzi I, President Obasanjo stated that with a population of 140 million and the cost of maintaining the nation's defence and foreign missions and the low level of production, the country could not be classified as rich.

He told the delegation at the Council Chambers of the Presidential Villa: "I feel worried at times, when people talk about Nigeria being in money. With our population of about 140 million, we produce as much oil or nearly as much oil as Libya with a population of five million. So, when you look at our land area, which we have to criss-cross by road, by pipelines, we are three or four times the size of Great Britain, which colonised us. So, when people talk about resources in this country, one wonders what really they are talking about because we are poor in spite of what we may think that we have.

"The total budget of the Federal Government is about the budget of the Fire Services in the city of New York. And yet, we think that we are a rich country. Yet, the city of New York doesn't have to think of the foreign services where we have a little bit over 80 missions abroad. It doesn't have to think of a defence of Army, Navy and Air Force. It is only a city. So, when people talk about Nigeria being a rich country and they want to live without being productive but relying on oil income, we are just deceiving ourselves."

President Obasanjo said that the development of the country was the responsibility of not only the Federal Government, but also that of states, local governments and communities.

He noted that while the Federal Government was seen as the "father of all," the states and local governments also had their own roles to play.

He urged the people of Agbor Kingdom to contribute more to the development of their community, adding that the Federal Government was faced with "competing and conflicting demands" for development in the face of limited resources.

He congratulated the kingdom on being one of the surviving monarchies in the country and thanked its people for the support given to his administration, promising that it would do what it could to assist in the development of Agbor.

The Dein of Agbor had earlier commended the Federal Government's economic reform agenda.

He also called for the dredging of Orogodo river; the digitalisation of Agbor telephone exchange and the construction of a fly-over at Agbor junction on the Benin-Asaba Road.

His address also noted that His Royal Majesty, Keagborekuzi I took Nigeria into the Guinness World Record as the youngest crowned king in the world.

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Daily Trust
Friday, November 14, 2003  
 
Nigeria is poor, says Obasanjo

By Reuben Yunana

President Olusegun Obasanjo yesterday took a look at Nigeria’s revenue profile, its huge population of 140 million coupled with its large landmass, and declared the country a poor nation.

The president who spoke at an audience with the Dein of Agbor Kingdom, Delta State, said he felt worried when people describe Nigeria as a wealthy nation," we are deceiving ourselves," he said.

According to him, whatever the economic indices is used, Nigeria cannot be said to be a rich nation when people talk about Nigeria being in money, with our population of about 140 million, we produce as much oil or nearly as much oil as Libya with a population of five million.

"So when you look at our land area, which we have to criss-cross by road, by pipelines, we are three or four times the size of Great Britain which colonised us. So when people talk about resources in this country, one wonders what really they are talking about because we are poor in spite of what, we may think that we have," the President argued.

He pointed out the total budget of the federal government of the city of New York. And yet we think we are a rich country, yet the city of New York doesn’t have to think of the foreign services where we have a little bit over 80 missions abroad. it doesn’t have to think of a defence, an army, navy and airforce. It is only a city.

"So, when people talk about Nigeria being a rich country and they want to live without being productive, but relying on oil income we are just deceiving ourselves," he said.

Speaking earlier the Dein of Agbo Keagborekuzi I presented the President with a list of requests which included adequate provisions in the 2004 budget for the erosion control project in the area, digitalisation of the Agbor telephone exchange, construction of the federal road Agbor-Ogharafe, construction of a 132 KVA NEPA line from Benin-Agbor-Asaba, and the Agbor-Ozara water scheme among others.
 
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ALUKO COMMENTARY

And the Mayor of the City of New York does not criss-cross the world in a "mayoral jet", attending international meetings constantly, nor does the city spend city money on international games (eg COJA) or meetings (eg CHOGM)!

"Alleluyah, Jesu ye!" that at least President Obasanjo now realises that "Nigeria is not rich" as we are presently administered.  Mind you, Nigeria is NOT POOR - but we are NOT RICH as presently administered.

But there is worse news:  Nigeria's proposed 2002/2003 and 2003/2004 expenditure and revenue budgets each is of the order of N1 trillion, which at about N140 to $1 conversion is $7.14285714285714285... billion. 

I don't know about NY Fire Services, but what about New York CITY itself?  Well, let us read:

http://www.nyc.gov/html/records/pdf/finan/659erc7_03.pdf

and you will find there that the 2003 and 2004 Fiscal Year budgets for the city as adopted are in the order of $42.3 and $43.7 billion respectively, which make the budget of the City of New York in fact SEVEN TIMES larger than that of Nigeria!  Of the City's budget, the Federal Government and New York STATE in total both kick in roughly $12.7 billion in categorical grants - or roughly 30%.  [The STATE of New York's spending budget for 2002-2003 and 2003-2004 are of the order of $90 billion; see for example

http://www.osc.state.ny.us/press/releases/feb03/budgetreport.pdf,

making the state's budget about 13 times bigger than that of Nigeria.]

So it is commendable that for the first time - at least to the best of my knowledge - the president is putting Nigeria's current "wealth" in its true perspective.

But he must from now on act accordingly: he must walk the talk.

Bolaji Aluko

PS1:  Men, last Saturday November 8, as I travelled from Abuja to Akure, about 30 brand new BMWs - "Senior COJAs", as my driver called it - all silver/black, all lights lit, sped past in full formation, headed for Abuja in preparation for CHOGM, being driven all the way from Lagos.  I instantly wondered how all the Lagos-to-Abuja villagers past who the splendid cars travelled felt:  "Dang! Is this is a rich country or what?  If it is so rich, why am I so poor?"
 
Inquiring minds want to know.

PS2:  And anyway, why is the President receiving the Dein of Agbor, who jumps over his local government and his state government to present a long list of requests to THE WHOLE PRESIDENT OF THE WHOLE COUNTRY?  Is it not because of the impression created that the Federal Government is indeed EVERYTHING in the country?

PS3: FOR THE RECORD

http://www.dawodu.com/aluko72.htm

"Debt Relief, Loot Recovery and Constitutional Reform in Nigeria"

Testimony by Mobolaji E. Aluko before the US Congressional Subcommittee on Domestic and International Monetary Policy, Committee on Banking and Financial Services (May 25, 2000)

QUOTE

During the period 1986 to this year 2000, the exchange rate between the US dollar and the Nigerian Naira changed from US$ 1 equals about 2 Naira to $1 = 100 N. Furthermore, its internal debt increased from N36.5 billion in 1986 ($0.36 billion in today's dollars) to about N400 billion ($4 billion) today.  

During this same period, Nigeria's external debt increased from $11.5 billion in 1986 to $33.2 billion in 1990, $33.4 billion in 1991 and then fell to $29.5 billion in 1994. It rose to $32.6 billion in 1995. Currently, it is placed at about $30 billion dollars, or about 70% of its 1999 estimated Gross Domestic Product, and of which about $14 billion is payment on arrears. During this period it has, at an official level, tried everything to manage the debt: debt rescheduling, debt conversion, debt-buy back and curtailed new borrowing, yet it has seen little or no relief. The strategy is just not working and cannot work.

For the US, the dollar figures quoted above are not large, but for Nigeria, they are insurmountable, but go to accentuate the fact that Nigeria with its monoculture of oil and its 120 million population, is a poor country, even though it is oil-rich. In fact, the current 2000 National budget of Nigeria which the Executive and the legislature are still haggling over is roughly N600 billion ( roughly $6 billion), which is what the District of Columbia is budgeting to spend on its schools in the coming year. But this Year 2000 budget means that 120 million Nigerians will have to starve for about 5 years if it is to use up all of its money to pay off its external debt if all interest payments were to be frozen today.

UNQUOTE

PS4:  On the Naira Exchange

In November, it is now officially $1 to 135-140, but last week in Abuja, I "saw" it in the parallel market at N154, headed for maybe N200!  Na wa o!