[stop-imf] Blair: After Nigeria's Debt Relief, Others Will Benefit

[Robert Weissman]

AllAfrica.com

*Blair: After Nigeria's Debt Relief, Others Will Benefit*

*This Day* (Lagos)
NEWS
July 21, 2005
Posted to the web July 21, 2005

By Paul Ibe, Donald Andoor, Samuel Famakinwa and Chris Nwachuckwu
Abuja and Lagos

British Prime Minister Tony Blair has said that the debt reprieve his
government assisted Nigeria in getting from the Paris Club is the
beginning of a process to extend debt relief to all countries which need
it.

The Paris Club of creditors late last month granted 60 per cent or $18
billion debt relief to Nigeria. By the deal, the country is expected to
pay the balance 40 per cent or $12 billion, beginning with $6 billion
arrears in September. President Olusegun Obasanjo is scheduled to
address the joint session of the National Assembly Tuesday next week on
how to take advantage of the deal and exit Nigeria from Paris Club debt.

In an email from British Prime Minister's office to subscribers on
www.pm.gov.uk yesterday, Blair who gave update on the just concluded G8
Summit in Gleneagles, Scotland, gave an indication that the United
Kingdom is already exploring how to improve on its relief package to
more African countries.

He said that the group of industrialized nations also "endorsed the very
recent agreement achieved by Gordon Brown (Chancellor of the Exchequer)
to cancel 100 per cent of the remaining debt which heavily indebted poor
countries owe to the World Bank, the IMF and the African Development Bank."

"Could we go further? Yes. The UK has. And I am sure that the agreement
we have helped to secure to cancel around $17bn of Nigeria's debts will
be the start of a process to extend debt relief to all countries which
need it," he said in the email.

Blair noted that the debt relief was part of a package to assist
developing countries, especially poor African countries get on the
development track.

While addressing UK parliament recently, Blair had said that the new G8
package for Africa "was the most detailed and ambitious package for
Africa ever agreed by the G8. But significant improvements in standards
of governance, transparency and accountability were necessary."

He said the plan was a partnership, "not an act of charity" and that "in
the end, only Africans can lead and shape Africa. We can help but every
government in Africa that betrays the principles of good governance
betrays Africa."

In the email yesterday, Blair said that the G8 "wanted to agree a
detailed and comprehensive plan, which addressed the multiple causes of
poverty together and effectively.

"One year ago I established the Commission for Africa to bring together
experienced people from various G8, developing and African countries,
and from politics, business and civil society, to pull together as much
evidence as possible of what was working and what wasn't working in
Africa in order to draw up such a plan. The Commission published its
report - Our Common Interest - of detailed recommendations, in February
this year.

At Gleneagles, he disclosed that the G8 agreed with African leaders on a
comprehensive plan which undertakes to implement over 50 of those
detailed recommendations of the Commission for Africa.

Some of the highlights of the recommendations include: support Africa's
Stand-By Peacekeeping Force; measures to improve governance and tackle
corruption, in Africa and by our own companies and citizens; as close as
possible to universal access to AIDS treatment by 2010; action to reduce
deaths from malaria and TB; funding to eliminate polio this year;
support for developing countries to provide free primary education and
basic healthcare; and a set of measures to encourage business, invest in
the necessary infrastructure and to improve the investment climate, to
help Africa create wealth and better jobs.

According to Blair, the G8 "agreed to back this plan with a huge
scale-up in resources including the doubling of aid to Africa by 2010,
increasing it by $25bn a year as recommended by the Commission for Africa.

"We agreed that this would be just part of an overall increase in aid
for all developing countries of $50bn a year by 2010. Aid should rise to
nearly $100bn a year in 2006 and to nearly $130bn in 2010.

"Could there have been more? Could it be quicker? Maybe. But many of the
African members of our Commission argued that Africa could not absorb it
more quickly and that if it was doubled overnight it could not be used
properly," he said.

In the email, Blair also added that "we agreed that trade would be a
major driver of the economic growth which all countries, but especially
the poorest developing countries, need.

"I wish we could have gone further in agreeing specific measures to
increase access for poor countries to our markets and to eliminate the
agriculture and export subsidies which unfairly count against them.
There was a determination among most leaders to address these issues."

Back in Nigeria, President Obasanjo may soon present a Supplementary
Appropriation of $6 billion to cover payment of the first installment of
$12 billion balance of the nation's foreign debt.

Indications that a Supplementary Appropriation to the National Assembly
for the payment of the balance of the debt is underway, emerged
yesterday with the listing of debt relief granted the country by the
Paris Club and the outcome of the National Political Reform Conference
(NPRC) as agenda for Obasanjo's address next Tuesday to the joint
session of the National Assembly.

The President has notified Senate President Ken Nnamani and Speaker of
the House of Representatives Alhaji Aminu Bello Masari, of his intention
and agenda for the joint session.

In two separate two-page letters dated July 19, 2005 to the leadership
of the National Assembly the President stated, "I wish to kindly request
your indulgence to brief the joint session of the National Assembly on
the debt relief and the outcome of the National Political Reform
Conference (NPRC) on Tuesday July 26, 2005 at 11.00am."

Obasanjo concluded the letter with an appeal to the members to "accept
assurances of (his) highest consideration."

Although details of the joint session as it relates to payment of the
balance of the debt is not clear THISDAY, however, gathered that the
President may suggest the presentation of a Supplementary Budget to
defray the foreign debt.

Masari had two weeks ago at an interactive session with newsmen
indicated that the National Assembly was expecting a Supplementary
Budget of about $6 billion.

Also, Obasanjo would brief the legislators on the outcome of the
national conference, which report is expected to be submitted to the
President tomorrow. It was, however, gathered that the submission of the
report would be without fanfare and may comprise the leadership of the
national dialogue and three other delegates. But Conference Chairman
Justice Niki Tobi had while adjourning the conference indefinitely July
11 said that the delegates would be recalled to sign the document.

Meanwhile, the House yesterday stood down debate for a bill to establish
the Armed Forces Services Commission.

The Commission would among others be charged with the responsibility to
appoint persons to offices in the nation's armed forces (other then the
Chief of Naval Staff) and to promote, dismiss and exercise disciplinary
control over any person, holding office in the armed forces (other than
the Chief of Defence Staff, Chief of Army Staff, Chief of Air Staff and
Chief of Naval Staff) and to ensure that all appointments in the Armed
Forces reflect federal character.

The House in a committee of whole, presided over by the Deputy Speaker
Austin Opara ruled that the bill be stood down until the House Committee
on Rules and Businesses make available to all members the Armed Forces
Act, 1993 to guide them in the debate.

The ruling followed arguments of Hon. Mao Ohuabunwa, Andrew Uchendu,
Segun Oke, Adamu Aliyu, West Idahosa, C. I. D. Maduabunam and Celestine
Ughanze that the Committee on Defence did not supply the members with
all the necessary documents to guide them in their debate and
consideration of the bill.

Ohabunwa said that clause one of the bill contravenes Section 130 of the
1999 Constitution. He also requested that members be furnished with the
Armed Forces Act, 1993 so that their contributions would not contravene
these laws.

Others followed this line of argument, which prompted the Deputy Speaker
to rule that the bill be stood down till the relevant documents were
made available to guide members in their debate.