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Nigerians’ money abroad
Although it is not
the first time the nation would receive a damning verdict on its affairs, last
week’s United Nations revelation that Nigerians have stashed away 107 billion
dollars in foreign accounts is generating unusual reactions.
"It is disturbing. It is making every
Nigerian who genuinely has the interest of this nation at heart to feel bad,"
Alhaji Bularabe Musa, former Presidential candidate of the Peoples Redemption
Party (PRP) and incumbent National Chairman, Conference of Nigerian Political
Parties (CNPP) told Daily Champion.
The report released by the United Nations
Industrial Development Organisation (UNIDO) has been trailed by calculated
silence, especially on the part of government. Although the organization did not
unmask the identities of those who stashed away the whopping amounts, the
countries in custody of the monies, or the period they were channeled to their
current foreign domains, it was precise that the development has impacted
negatively on the nation’s growth.
Coming barely a few months after the
allegation that states governors and some government officials were hiding under
the guise of their frequent trips abroad to stash money away, which generated
widespread controversies, the new UN report seems, albeit obliquely, to have
given teeth to the allegation.
"It is in a way a confirmation of the
recent allegation that our governors and some people in government have been
going to foreign countries to bank their money," Alhaji Musa said.
As the CNPP boss admitted, it would be
incorrect to argue that the reported 107 billion dollars are all monies stolen
by past and present government officials and their private sector collaborators,
‘The monies are not all stolen ones. They include legitimate wealth made by
hardworking Nigerians," he said.
Even without Musa’s explanation, this fact
is well known to many informed Nigerians. Perhaps, the worry expressed by many
stems from the fact that the report has brought the grim truth of why economic
hardship is unabating to the door steps of many a Nigerian.
Beside the fact that the UN agency singled
Nigeria out as the nation with the worst case of capital flight in Africa with
more than $100 billion private wealth kept abroad, representing an estimated 70
per cent of the nation’s total private wealth, the body, by its report has given
an insight into why the persistent drive for foreign investment and the clamour
for debt cancellation by the government of President Olusegun Obasanjo have
achieved less than expected success.
For many analysts, the craze to stash
money abroad is encouraged by the poor security situation in the country. UNIDO
confirmed this belief as it argued in part that "this is both a symptom that
something was radically wrong. It is a symptom in that if Nigerians were placing
their own wealth abroad, it was evident that foreign private investment was also
unlikely to enter the country in larger quantities other than for highly
specialized opportunities such as oil extractions.
"Evidently the investment climate is
unsatisfactory for whatever reason."
Economics Noble laureate, Prof Joseph
Stilglitz had in May passed similar verdict on Nigeria. Delivering a lecture in
Lagos, Stilglitz had argued that the stashing of funds abroad by Nigerians was a
direct response to insecurity and unfavourable investment climate in the
country.
Neither government nor social affairs
commentators joined issues with Stilglitz. But government and the Peoples
Democratic Party (PDP) have severally punctured claims by oppositional parties
and pro democracy activities that the nation’s security was deteriorating.
"We have always been dismissed anytime we
come up to raise alarm over the deteriorating state of our security. Government
would swiftly say that we are envious of them," Balaraba Musa said.
He continued, "Ironically, the same
government has not faulted the views of the international community who have
continued to say that Nigeria in unsafe to stay and do business in. We like to
play to the gallery. We don’t like truth to be told to us especially by our
blood brother’s"
Apart from fears of security, he also
identified lack of stability in the polity as another major reason why wealthy
Nigerians prefer to take their funds to foreign climes that have a predictable
political atmosphere.
Although Nigeria has been in democracy in
the past five years, the groundswell of dirty and putrid developments like
allegations of massive elections rigging, incessant ethno-religious crises,
stories of impeachments, threats of secession among others which continue to
spring up on daily basis have hardly convinced many, including major players in
the political turf of the need to re-funnel their funds and wealth to the
nation’s shores.
Chief Brandy Nwosu, former senatorial
candidate and PDP chieftain said "the problem we have is that many people are
not yet convinced that our democracy will survive. They still want more time to
get that conviction."
He offered another reason for that. "The
substantial amount is owned by politicians who believe that though they are
Nigerians, they are more at home in London, America or other parts of the
civilized world. It is more of an ego thing than any other reason that one may
offer."
He argues that the sustenance of democracy
and good governance remain the only way the practice, can be changed. "Let us
not make mistakes about this, there will be a time when Nigerians will see the
need to voluntarily re-channel their funds back home. And that time is when they
see that democracy has taken root in the country and successive authorities are
alive to their responsibilities,’ he said.
Former Abia State governor, Dr Ogbonnaya
Onu is wholly in agreement with the above viewpoint. According to him, in a
telephone interview, the incursion of the military into political leadership
introduced a lot of anomalies into the political landscape.
He said "democracy will gradually purge us
of certain behaviours and psychological inclinations. The prayer of every
Nigerian is that democracy should remain and that good people should be given
the chance to rule and do the bidding of the masses."
Nigerians are not the only people who
developed great love for stashing their monies in safer vaults in foreign
countries. The only difference, perhaps is that nationals of many countries have
since given up such practice in the interest of their nations.
For instance, Uganda, China, India South
Korea and Thailand who used to enjoy a good mention for the practice are now a
reference point in terms of countries whose wealthy citizens have shown active
interest in developing their economies.
According to the UN "they have been
achieved elsewhere by countries such as China, India, South Korea and Thailand
which started at levels of income similar to those of sub Saharan Africa
countries."
Part of the question raised by few people
is why has the incumbent administration which has expended substantial part of
its energy canvassing for foreign investments not considered the need to
convince owners of the $107 billion to invest at least part of the huge amount
in Nigeria.
From the account of one senator who does
not want his name mentioned, "it is not news to government that Nigerians own
over $107b in foreign accounts. In fact the amount should be far more than that.
"The problem is that the kind of people
who own some of this money are not such that you can say you want to toy with.
They have their minor investments in the country. Their money in foreign lands
are not for direct investment in Nigeria. There is nothing anybody can do about
it."
Without running any risk of
misinterpretation, what can be deduced from the senator’s comment is that a
larger part of the money in question is owned by political heavy weights, a
situation that has made government helpless.
But if that is the true picture, it raises
more questions about government’s commitment to the laws of the land.
Although there is a law forbidding serving
government officials from owning foreign, accounts it has always been observed
in the breach.
According to the senator "we have a
standing rule that forbids those in government from banking their funds outside
the shores of the country. The law has been there but it is not obeyed.
"It is part of our belief that it is for
makers of our laws to obey the sections they like and disobeyed those that will
not serve their selfish goals.
"It is not that the nation cannot fight
corruption, the truth is that some people believe that they are above the law.
One way or the other successive governments have continued to play along with
them."
President Obasanjo has reportedly said
that his administration is determined to fight corruption and will countenance
no sacred cows in the battle against the menace. Since the flag off of his
administration in 1999, he has pursued the recovery of millions of dollars said
to have been looted by the late military head of State, Gen Sani Abacha, with
extra-ordinary vigour and passion.
The effort has partly paid off with the
recovery of part of the looted funds. But government’s searchlight on Abacha has
raised more questions and agitations. Now, many argue that it borders on mere
witch hunting to focus, only on Abacha when there are many other government
officials and Nigerian leaders, who are alleged to have tinkered with the
nation’s till.
Government has offered several reasons why
it is on the trail of Abacha, but it has not Proffered more than vague
explanations on why it cannot investigate some past and present government
officials.
Critics of government have dwelled on this
to carpet it over its claim of fighting corruption. But beyond that, the
consequence of Nigerians’ funds being in foreign lands appears more weighty than
any issue that may be considered.
UN is categorical that the situation will
continue to keep the economy of Nigeria prostrate. Some people may not agree in
totality with the body, especially those who have sustained the argument that
the probe of Nigeria has to do more with bad leadership.
But whether we fault it or not, the truth
is that the returning of a colossal amount like $107b to the nation has the
capacity to reflate the economy and assist government in remoulding the real
sector.
Director of Communications, Lagos Catholic
Archdiocese, Rev Fr Gabriel Osu submits "agreed our problem is bad leadership,
but it is easier for government the world over develop faster if it has the full
support of the private sector. If such a whopping sum is brought to the nation,
the economy will change because companies can be established and the production
sector will be active."
He counseled "we should show patriotism in
what has to do with the nation. We all have a role to help this nation to grow."
Definitely, though government, as many are
want to argue, has a greater role to play in dissecting and working out ways of
making sense out of the UN report, the fact remains that it will take individual
and corporate commitment to change the state of affairs in the nation.
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