Nigeria Should Resist Borrowing From IMF or World Bank and Other Financial Institutions.
President Muhammadu Buhari is roaming the world capitals cap-in-hand begging for loans to help fight Boko Haram and to fight corruption. And every once in a while he would mention boost the economy. In these rare occasions where he accepts that the Nigerian economy is in danger, his main focus has been on the two pronged wars he is determined to fight and win. One of the reasons for this posture is that they are what the developed nations want to hear.
But are they what Nigeria needs and wants?
At what prices?
To answer the last question first, the price of borrowing is usually very, very steep. On paper both the World Bank (WB) and the International Monetary Fund (IMF) are classified as low cost lenders. Nothing can be further from the truth. Yes their interest rates may be lower than the commercial banks’ rates but consider all the other non-financial costs of the loan. For most loans the borrower country gives up its sovereignty to get the loan. The banks will give directions to the borrower country on the country’s fiscal and monetary policies, on where to invest and where not to, on the salary structure of the civil servants including what benefits can be given to workers, they will dictate health policies and everything in between. If in doubt check back to how EU dealt with and are still dealing with Greece. The Greek people actually rejected the terms, but did it matter? Germany eventually had its way. WB, IMF, and foreign lenders had always had/have their ways. We should not forget what happened during SAP in the 80’s.
We should be happy that Ms. Ngozi Okonjo-Iweala got us out of the trap and should be very, very leery about getting back in. Our freedom should be dear to us: Give me freedom or give me death is a popular saying in New England.
What are Nigerian needs and wants?
The wars on BH and corruption are not winnable wars especially by an administration that is still fighting the conventional war against Biafra. BH is not Biafra It has no bases, no barracks, no massed troops, or clearly defined territories. They do not even have uniforms or ammunition dumps that could be bombed out. They fight on their own terms and choses where and when to fight. There are no established rules of engagement. The same with the war on corruption. But above all else wars mean destruction of resources. Wars do not lead to economic development, guerilla wars do not even result in the development of military industrial complex for they are fought with crude weapons. A government that has no parallel policies on negotiation and attacking the heart of the rebellion cannot make much progress in the battle field.
Successful wars are fought with carrots and sticks. PMB has only sticks.
What Nigeria needs and wants are:
1. To secure the independence that Azikiwe and his compatriots won the hard way. This includes the ability to make her own decisions on her own terms without the overbearing whips foreign nations and foreign institutions. Nigeria should never give up her sovereignty for any material things no matter how tempting or circumstances
2. Nigeria needs to look to itself for solutions to her problems. This will include self-imposed belt tightening, self-imposed investment on areas that have strategic benefits such as agriculture, education and industries. The dwindling foreign exchange ought to refocus our attention to domestic products and producers. Nigeria is capable of refining all the oils it need. One only needs to go to the creeks in Rivers and Bayelsa states where crude oil is refined illegally. Or to Biafra where military and civilian vehicle were fueled by locally refined fuels. Ditto for everything from food processing to house building materials to manufacturing of bicycles, cars and other things beyond. These products could be crude now but with time and experience these industries would improve and reach world standards. A joint effort between industry and universities is a tried and proved way out.
3. Nigerians need a talking, negotiating, and listening president and administration. PMB will not talk to BH; will not talk to IPOB, MASSOB, MENDS, PDP, GEJ administration, etc. He will not get too far by force of character and military guns. These weapons have their limits too. Jaw jaw, jaw is better than war, war, war. All wars eventually end on an oak table.
4. Nigeria needs openness and transparency like fish needs water. It will start from the top to bottom from now to the past and protrude to the future. It appears that the major efforts are for looking at the past. One cannot go far by going backwards (onweghi ebe eji azu eje). Nigeria must focus on the future. Accountability must start from now and going forward with occasional glance backwards.
5. Nigeria needs democracy. Democracy does not begin and end with elections. It means strengthening democratic infrastructures, The legislative, the judicial, the civil services, police, the parastatals, states, local government, civil liberties, NGO’s, town unions, labor unions, educational institutions, industries, etc. Each of these has its areas of influence that must be recognized and appreciated. A one man government is called dictatorship and Nigeria does not need it. And if it rears its ugly head should be uprooted and cast into the fire.
6. Nigeria needs citizens who participate in their governing. Sometimes I feel that the leadership is there but the followership is not there. The leadership ought to get clear messages from the followers as the followers needs and wants so that the leadership can lead to the desired out comes. Followers ought to hold the leadership accountable and the best place to start is from the local leaders. If the locals cannot ask the chairman of the LGC where the allocation from the FG is spent; why the teachers of their kids have not been paid; where he got the money to buy three houses in Abuja or Lagos; etc. how can they ask PMB about his unlimited number of horses? Or why he has many, times more jet planes than the Saudi Prince?
Above all Nigerian needs the backbone to reject easy solutions like borrowing from WB and IMF or other foreign countries or institutions. Nigeria needs to look for internally generated funds at all levels of government, LGA should look into the communities for funds, states should look into its geography for money and stop looking to Abuja for every nickel and dime, and the mighty FG should be mighty indeed and create situations to collect all revenues due and available.
If Nigeria looks at the mirror she would find the savior.
Written by Benjamin Obiajulu Aduba.
