Cancellation, not forgiveness, is what Nigeria needs

Nigeria's Senate President said Nigeria needs debt cancellation, not forgiveness or relief. In a recent speech in Paris, he said “that the illegitimacy of military governments upon which our debt burden rests - plus IMF blunders - has made Nigeria one of the poorest countries of the world. Thus millions of people wallow in IMF-induced poverty.”

The full text of his speech is below:

Text of an address by the Rt. Hon Dr. Chuba Okadigbo, Nigeria Senate President, to the forum of the World Senate at Luxembourg, Paris, published in The Guardian, 29, March,2000

There are several definitions of debt relief. The first is debt rescheduling, which parades as debt relief. The second is debt forgiveness , as sort of charity or red cross activity. The third is debt cancellation. This is the position of the Senate and House of representatives, that is the National Assembly of the Federal Republic of Nigeria. Therefore we hereby make this plea for debt cancellation.

In point of fact, debt rescheduling merely prolongs debt burden. For the interests paid upon such debts sustain the relevant debts for too long if not endlessly. Whereas the quantum of debt increases, no thanks to the original debt has already settled. This means that debtor nations keep paying creditor nations -- way beyond the original sum which they had been settled.

Take Nigeria as a dynamic instance, for explanation. It is here recall that the Nigeria debt doom is a child of many military governments. Worse still, it is indeed a fruit of structural Adjustment Programme (SAP), proposed to and imposed on Nigeria by the International Monetary Fund (IMF). This is to say Nigeria is a comatose victim of an IMF proposition. Take due note that the illegitimacy of military governments upon which our debt burden rests plus the relevant IMF blunders has made Nigeria one of the poorest countries of the world. Thus millions of people wallow in IMF- induced poverty. As such the continuation of debt rescheduling in the guise of debt relief, is fiscally imprudent and morally bankrupt.

Another leg of our argument is the fact that much of the monies which aggravate our horrendous debt burden are lodged in American and European banks. Such money has made staggering profits for those banks in those countries, while other people are plunged into poverty and degradation. While over 100 million Nigerians remain desperately poor, those banks in those countries feed very fat on that poverty. This sort of robbing poor Peter to pay rich Paul is to say the least awkward. They run counter to the principle of justice and fair play and promotes the indignity of man to man. We suggest that the right direction is debt cancellation, not debt rescheduling.

In this connection, it should be noted that the importation of stolen money into America and European banks is illegal. Furthermore, the illegal importation of Nigerian money indeed of any debtor nation's money into Europe and American banks constitute some infringement of the laws of American and European countries. This is to say that by strict application of the relevant laws of the countries in which such monies are lodged, Nigeria now owes nothing. It seems infinitely unfair that poor citizens of distressed Nigeria and other debtor-nations are being made to pay for money stolen from their countries and domiciled in foreign countries. Apart from the double jeopardy, we need not stress the immoral dimension of quagmire.

We plea for debt cancellation, through the delegations here present to the creditor nations. Let us mount a global campaign poverty and illegality, via debt cancellation. We humbly appeal to you to persuade the rich, creditor nations and financiers to have mercy upon our poor people and our poor countries, by translating debt relief and debt forgiveness to the proper title of debt cancellation. We beg you to help us propagate our cause throughout the world, especially among the G-7 nations, please.

On a final note I hereby renew the assurances of solidarity of the members of the national Assembly of Nigeria with all Senators throughout the world, having regard to our desire for strengthening multinational relations with senates and Upper Houses of the world.

Ends.