Paul Ibe, Donald Andoor, Samuel Famakinwa and Chris Nwachuckwu
21 July 2005
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.
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