Do you think that recent attacks on the Minister of Finance and Coordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala, are justified?
Hon. Ade Samuel, Deputy National President of Arewa Youth Forum
As humans, it is easier to forget the pleasant things we had enjoyed in the past, especially when faced with adversity. As government makes difficult changes on the way the economy is structured and people begin to feel uneasy, some people have begun to question the credibility of those managing the economy. As the Finance Minister and the Coordinating Minister for the economy, Okonjo-Iweala has come under attacks, with some questioning her continued stay in office.? I therefore believe that the attacks are baseless and unjustified.
Why do you say that the attacks are unjustified?
It will be worth the while to remind us of Okonjo-Iweala’s commitment, passion and determination to make sure that a sustainable economic structure is put in place. First, when Dr Ngozi Okonjo-Iweala was appointed Finance Minister in 2003, Nigeria was burdened with debts inherited from several military rule. Relying on the commitment of the then President, Olusegun Obasanjo, to get the debt extinguished, Okonjo-Iweala used her experience and connection in the international banking system to get the debts written off and freed Nigeria from a debt burden that had crippled the development of infrastructure in the country. To this end, sh?e spearheaded negotiations with the Paris Club of Creditors in 2005 that led to the wiping out of US$30 billion of Nigeria’s external debt, including outright cancellation of US$18 billion. Secondly, before she was appointed finance minister, allocations to states and local government areas were shrouded in secrecy whereas transparency is seen worldwide as one of the benchmarks of democratic rule. She introduced transparency into the allocation system and people now know how much their state governors and local governments have collected as allocations. This is still the case today.
Agreed that she supervised the process for wiping out our debts, she is also now reported to be leading us towards accumulation of another set of debts?
Nigeria is no longer heavily indebted. The reason for the recent rise in debt-to-GDP ratio is because Nigeria has had recourse to domestic borrowing to finance its burgeoning recurrent expenditure. She had made sure that Nigeria did not borrow money to finance infrastructure. One of the issues the Coordinating Minister dealt with is the charge, made by the Chair of the Committee in the media, that the country is raking up debts under Dr Okonjo-Iweala’s watch as Finance Minister. As shown in her response, there is no substance in the charge. In fact, the opposite is true. Right from her Senate confirmation hearing in 2011, the Minister had identified rising debt as a major challenge which the country needs to confront. Under the leadership of President Jonathan and working with the Debt Management Office and the Budget Office of the Federation, the Minister followed through with a robust approach which includes progressive reduction of borrowing, quick settlement of due debts and the retirement of N75 billion of maturing bonds via a Sinking Fund dedicated to paying off substantial bonds. These measures have produced clear results as shown in the reduction of borrowing from N852 billion in 2011 to N571.9 billion this year.
She has repeatedly said corruption hurts the economy, yet the world continues to see Nigeria as a very corrupt country. Beginning from 2003 when she was first appointed finance minister, Okonjo-Iweala objected to massive corruption in the country and used the budgeting system to fight corruption even though those at the helm of affairs in the civil service have remained uncooperative. She tightened the budget and blocked many loopholes through which funds meant for development were siphoned out of the system. For her efforts at sanitizing the system, Okonjo-Iwela incurred the wrath of the top echelons in the civil service. ‘Am sure very soon the world will begin to see the results of her efforts in the fight against corruption. Don’t also forget that many people were jailed for corruption in this country. Under her watch, the economy has continued to grow but the common man can hardly feel the effect of the growing economy. Don’t forget that when the world economy plummeted, Okonjo-Iweala assured Nigerians that the nation’s economy would not be affected. She ensured that the economy was shielded from the volatility of the world economy. Why some big economies suffered major blows from which they are yet to recover, Nigeria economically remained stable. During her two stints as Finance Minister, she worked to combat corruption, make Nigeria’s finances more transparent, and institute reforms to make the nation’s economy more hospitable to foreign investment. The government unlinked its budget from the price of oil, its main export, to lessen perennial cashflow crises, and got oil companies to publish how much they pay the government. She has continued to attack corruption and accelerate privatization and liberalization of the economy.
She signed Nigeria up to the Extractive Industries Transparency Initiative, a voluntary standard for petroleum and mining industries. She managed to reduce Nigeria’s inflation by half. Inspite of many challenges which government has acknowledged, the Nigerian economy is showing real and measurable progress in many areas. This can be seen in the fact that more jobs are being created; roads, rail and other infrastructure are being improved; the country is saving for the future and planning better for the present. The Jonathan administration, contrary to the impression given by some critics, is making impact in the areas that, according to credible opinion polls, Nigerians are most passionate about. For instance, on job creation which is a central focus of the administration, a total of 1.6 million jobs were created last year, according to the National Bureau of Statistics (NBS), of which 250,000 were seasonal jobs created in dry season farming in 10 northern states. In manufacturing, the Onne Oil and Gas Free zone created an estimated 30,000 direct and indirect jobs. The government’s special intervention programme, the YouWin projectm supported young entrepreneurs, creating over 18,000 jobs. The SURE-P Community Services programme has also created 120,000 job opportunities. Okonjo-Iweala is running for the long haul. Her goal appears to be the institutionalization of an economic structure that runs itself, no matter who is at the helm of affairs.? Not an easy task. She has continued to diversify the economy and focus attention on non-oil sector. In the past and for too long we have had to rely heavily on oil alone. At present, the Nigerian economy growth is being driven by non oil sector, thanks to Okonjo-Iweala. One other thing you cannot take away from her is that she understands the Nigerian economy and knows what to do to grow the economy. But as she said in her response to the 50 questions posed to her by the House of Representatives, vested interests has continued to make reforms difficult.
Now that you have made reference to privatization, there are many people who doubt if the privatization had really helped the economy.
I believe privatization is good for Nigeria and has been good to Nigerians. First, under her supervision, Nigeria has privatized the power sector. I remember that many opposed the privatization of the telecoms industry in 2000 but today there is hardly a family that does not have a telephone. Although we are yet to enjoy the benefit of the power privatization, but in no distant future Nigerians we will begin to see the advantage of privatizing the power sector. Let me also add that, Okonjo-Iweala is not a magician. She has acknowledged and accepted that challenges remain. One of such challenges is the intolerable level of unemployment in the country. Even before the ugly incident of March 15th which resulted in the death of about 20 Nigerians who went for the Nigerian Immigration Service interview, Okonjo-Iweala had raised the alarm on the crisis posed by unemployment. One is sure that the state of joblessness must be giving her sleepless nights. ?In the nearest future one can only hope that the favorable investment climate being created will attract more investors to the country. Rather than condemnation, what she requires from Nigerians is patience, understanding and encouragement. ?In my view, she is one minister who means well for the country.
http://dailyindependentnig.com/2014/04/okonjo-iwealas-been-a-blessing-to-nigeria-samuel/
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