Campaign letter to Mr. Summers

 

June 9, 2000

Mr. Lawrence Summers,
The United States Secretary of Treasury.
Through the US Ambassador
Lagos, Nigeria.

Dear Mr. Lawrence Summers,

Debt Cancellation for Nigeria

Greetings from the Jubilee 2000 Nigeria Campaign.

It is no longer a secret that one of the biggest issues of discussion in the international financial circles is the issue of debt and debt cancellation for poor countries of the world.

Nigeria's case evokes sympathy, as it is one nation endowed with natural resources yet it is highly indebted and a poor country of the world. The reasons are quite obvious: a long period of military incursion into her polity characterized by a high level of corruption amongst persons in positions of trust and supposes friends of Nigeria. The fact here is clearly that Nigeria's debts fall squarely within the framework and description of odious debts.

We have been involved in the global campaign for debt cancellation and we have also placed the stolen wealth issue in the front burner and have been following global discussions on whether or not to cancel Nigeria's debts. We have had our ears on the debates going on in different fora in the US concerning debt cancellation for Nigeria and we appreciate the concern of the US government and citizens in different positions and capacities who have pushed for Debt Cancellation.

Not-too-long ago, congresswoman Senator Maxine Waters representing Democratic Party of California made a special case in support of debt relief for Nigeria and her views meets the aspirations and yearnings of the people of Nigeria and her genuine friends all over the world.

We are, however, worried with the statement credited to a US Treasury Department Official, William Schuerch who said "the US have been substantially engaged in the issue within the government and with other governments and creditors but to our chagrin pointed that of the entire debt stock, about 3 percent is owed to the US "which according to him "is a very small percentage of the $33 billion in loans" According to the Treasury Department official "this small exposure on the part of the US limits our capacity to influence Nigeria's other much larger creditors, including the United Kingdom, (25 per cent), Japan (19 per cent), and Germany (15per cent)."

We believe that this position lacks merits as Canada owed less than 1 per cent ($42.4 Million, Canadian) of the total debt stock of Nigeria was cancelled way back in 1990.

Jubilee 2000 Nigeria also believes that since Canada has taken the lead, the US can as well take the next step and others will follow. The percentage of exposure of the debt stock owed does not really matter, as the colossal effects are monumentally serious.

It is not out of place to reason that every $100 debt cancelled will make a child in Nigeria have an access to education or it will provide a sick Nigerian access to basic health need. Therefore the Jubilee 2000 Nigeria, reject the US proposal for debt

rescheduling as it at best postpones the sufferings of Nigerians. You will agree with me that the US is building a brighter future for its generations yet unborn whereas a support for debt rescheduling amounts to a support for a bleak future for the present and upcoming generations of Nigerians. To avoid inter-generational injustice, we urge the US government to use its position to support debt cancellation for Nigeria.

It is also incontrovertible that the new democracy in Nigeria is currently under threats as evidenced in the events of the past few days. This again is traceable to the huge external debt stock and the various World Bank and International Monetary Fund's policy prescriptions.

We urged the US government to support the Obasanjo's government to redress previous injustice and the war against corruption. A better way is for the US government to support the stolen wealth campaign and endorse the international convention on stolen wealth as enshrined in the Santo Domingo Declaration by the ACP countries. In the light of the above, Jubilee 2000 Campaign wish to recommend the following to the US government:

1. We reject the current recommendations for debt rescheduling for Nigeria

2. We call for total and unconditional cancellation of Nigeria's external debts, which to us are odious and irresponsibly contracted.

3. We demand for Accountability and Transparency in the uses of export credit Facility for Nigeria. We also demand an independent review of past Export credit related debt between the US and the Nigerian Government

4. We call on US Government to support the Jubilee 2000 campaign demanding for debt cancellation for Third World countries including Nigerians as canvassed by Jubilee 2000 world-wide.

5. We call on the US governments to endorse the Santo Domingo Declaration, which calls for an international convention on Stolen Wealth.

6. We appeal to the US Government to support the call by Jubilee 2000 Global

Campaign to establish an international Adjudication Panel for the debtors and creditors.

From Jubilee 2000 Nigeria, we again send you warm greetings and expect to enlist your support in the global project of Debt Cancellation for the World's poor.

Yours Sincerely,
Rev. David Ugolor
Member National co-ordinating Committee

Jubilee 2000 Nigeria Campaign
C/o ANEEJ Secretariat
61 2nd Cementry Road
Uzebu Quarters, Benin City,
Edo State, Nigeria

Tel:234-52-258748
Fax:234-52-250668
e-mail:aneej@rcl.nig.com.