Tag: Okonjo-Iweala

Minister of Finance and Coordinating Minister for the Economy Dr. Ngozi Okonjo-Iweala has been honoured with a doctorate degree by Yale University, one of United States (U.S.) prestigious institutions.

A statement from the her spokesperson Paul Nwabuikwu said Mrs. Okonjo-Iweala was awarded a Doctor of Humane Letters at Yale’s 2015 Commencement Ceremony in New Haven, Connecticut on Monday.

The statement reads: “She will be  the second Nigerian in the university’s 314-year history to receive its highest honour after Nobel laureate Wole Soyinka, who received an honorary Doctor of Letters in 1980.”

Nwabuikwu said the President of the University, Prof. Peter Salovey described Okonjo-Iweala as “a brilliant reformer and dedicated public servant”.

He went on to state that “the minister has spearheaded efforts to stabilise and grow Nigeria’s economy, battling widespread government corruption and creating greater fiscal transparency and discipline”.

  The varsity’s honorary doctorate degree is seen globally as a very important honour.

According to the institution “those who have received honorary degree are scholars, public servants, Nobel Prize winners and heads of states.

“Collectively, they represent the aspirations of this institution. Yale honorary degree recipients serve as models of excellence and service to our students, to our graduates, to our community and to the world,” Nwabiukwu quoted the institution as saying.

He said the economic team she led as finance minister helped Nigeria to obtain debt relief in 2004, wiping out $30 billion of Paris Club debt, a development that led to a tripling of the growth rates.

  During her second coming in 2011  as the Minister of Finance/Coordinating Minister for the Economy, Mrs. Okonjo-Iweala, according to Nwabiukwu, has focused on building solid foundations and institutions critical for the survival and sustenance of the economy.

“She bravely fought corruption in governance with fierce dedication and unflagging energy” Nwabuikwu said.

The minister was honoured alongside the Chair of the Board of Governors of U.S. Federal Reserve System, Janet Yellen, popular Beninoise Singer and songwriter Angelique Kidjo, university professor and founding member of the Institute for Comparative Literature & Society at Columbia University, Gayatari Chakravorty Spivak, professor and director of the Starr Center for Human Genetics at Rockefeller University, Jeffrey Michael Friedman, inventors and entrepreneurs Elon Musk and Dean Kamen among others.

  Yale had in the past honored a handful of other Africans such as Liberian President Ellen Johnson-Sirleaf and South African notable cleric, Archbishop Desmond Tutu.

While President Jonathan is busy trying to write his own history, or more accurately, rewrite it, the Minister of Finance, Ngozi Okonjo-Iweala, is also determined not to allow anyone but herself write about the PDP’s economic management, in style and substance. In her words: “We cannot take away the fact that the Jonathan administration, in spite of the challenges caused by 50 per cent decline in the price of oil, has made a clear and measurable difference in many important areas and anyone who says nothing has been done and nothing is being left behind is being very unfair to facts and to history. Attempts to rewrite history will not stand. You cannot just wipe the slate clean for political reasons. We are not perfect but no one can take away the fact that we are leaving some good legacies behind.”

Dr Okonjo-Iweala is a troubled woman. She obviously has the nagging feeling that they will be judged failures on account of the huge mess the Jonathan government had made of the economy. What she failed to grasp is that the 50 percent drop in oil earnings did not start in 2010 when President Jonathan took office. It started only last year. Simply put, the government she serves did not prepare for this lean time. In addition, that same government spent rather recklessly and mostly lawlessly. Even though she worries that some analysts might be trying to rewrite history, she really has no defence. As far as history and legacies go, they do not need writers and rewriters: they will write themselves, without help if need be, either from Dr Okonjo-Iweala’s supporters or detractors.

It is an understatement to say the economy is flat and Finance Minister Dr. Ngozi Okonjo-Iweala, who doubles as Coordinating Minister for the Economy, feels lack of foresight and financial recklessness on the part of state governments should be blamed for this. But, economic analyst IMAM BELLO says the minister is responsible for the crash. His reasons are presented in this article.

Dr. Ngozi Okonjo-Iweala Minister of Finance and Coordinating Minister for the Economy  (CME) will be positively remembered for many things, including being  our first female finance minister, the Paris Club debt concessions  and  the  creation of the Excess Crude Account (ECA).

However, I am sure that in her quiet moments, she will reflect that this is not her finest hour. Indeed, the last few months have done much to demystify the enigma that she has been presented to be.

There are aspects of the current economic crisis for which she cannot be blamed. An example is the fall in global oil prices. However, there are equally some aspects of the economic crisis which must be laid firmly at her feet. Principal among the latter is the failure to appreciate that as CME, she is responsible for the entire economy – all its sectors and all its tiers.

The latest spate of blame trading with state governors over who is responsible for salary arrears is an unfortunate reflection of a tendency to monopolise credit for positive feats whilst happily shifting blame when things go awry.

The handling of the oil price downturn has raised serious questions about our economic management. In October 2014, with oil prices already falling, Mrs. Okonjo-Iweala presented a budget with a benchmark price of $78. She later revised it to $65 and finally to $52. The annual budget prepared by the CME percolates down to the budgets prepared by the 36 states and 774 local governments.

The shifting of benchmark created confusion in the lower tiers of government about the outlook. It is a well-known fact that in Nigeria, with the exception of a few states like Lagos and increasingly Ogun, the majority of states derive the bulk of their funding from federal transfers. Those transfers have fallen by 40 per cent since October 2014 – a precipitous decline.

Despite the sudden decrease, the Federal Government, through the Debt Management Office (DMO), actively prevented any state from borrowing. In 2014, only one bond was approved. Short term loans were denied through the employment of rigid and punitive enforcement of a rule requiring Federal Ministry of Finance approval, which was routinely denied. Thus, the states had no real space to maneuver and readjust to the new financial situation.

Meanwhile, the CME argued, rather self-righteously, derided the governors’ inability to meet salary obligations. Last week’s revelation that the Federal Government itself has borrowed more than N476 billion in just four months, majority of which was used for salaries, was a very shocking one. It is a very sad example of “do as I say, not as I do” -the height of economic hypocrisy.

Similarly, on the subject of the ECA, which was designed as a buffer against the fall in oil prices, the CME has always blamed governors for their insistence on sharing of the excess crude that she would otherwise have wished to save. The “Greedy Governors” moniker was both convenient and appealing. However, her comments belied an inconvenient truth. Every time excess crude was shared, the Federal Government received the lion’s share of 52 per cent. The ECA balance fell from around $11.5 billion at the start of January 2013, to as low as $2.5 billion in January 2014 despite consistently high oil prices over that period. If the CME were sincere in her desire to save, it would have been expected that the Federal Government would have saved its portion of the ECA. Rather, it has not only spent its share, but it has considerably increased the nation’s debts.

In Washington last month, Mrs. Okonjo-Iweala congratulated herself on how Nigeria has been able to weather the storm.  But a careful look beneath the surface shows a deep rot which if not corrected, threatens the economic future of the nation.

Collectively, states and local government councils are the largest employers of labour and their inability to pay salaries means mass retrenchment looms on the horizon.  Already, states, such as Ekiti and even the Federal Government, are embarking on verification of workers credentials. The underlying aim is clear even if not stated. It is a precursor to downsising the workforce.

In many states, the wage bill problems originated from the Federal Government itself, who in 2011 mandated a minimum wage of N18, 000 per month. There was neither an assessment of the financial impact, nor of the regional costs of living variations which should have seen this function handled individually at the state level, as it is done in other federations.

Those who implemented the requirements witnessed massive increases in their wage bills. In a recent interview, Ogun State Governor Ibikunle Amosun stated that his average wage bill doubled as a result of minimum wage from N1.7 billion to N3.8 billion monthly. The Benue State Governor, Gabriel Suswan, has been honest enough to state that his state is unable to afford the implementation of the minimum wage, setting him on a collision course with organised labour. Large salary increases were manageable when oil was trading at over $100 per barrel but at $40, the proverbial rubber hits the road.

The total federal transfers to states in 2014 were the lowest since 2010.  It should therefore come as no surprise, that salary arrears have begun to accrue. Indeed a total breakdown of essential services is a very real prospect, in some cases.

There is no room for “blame storming” during a crisis. The CME is responsible for all sectors of the economy. In a downturn, any sector that is of systemic importance must be protected. United States (U.S.) President Barack Obama raced to save America’s banking and automotive sectors, Nigeria did the same when the banks were threatened by creating Asset Management Corporation of Nigeria (AMCON). If there is a need for a similar move at state level, it should not be discountenanced. The CME must appreciate that there are no federal, state, or local Nigerians. There are just Nigerians. If the oil price has caused Federal Government to be in deficit, then it is wrong to castigate the states, that derive most of their income from that source, for also being in distress.

Imam Bello, an economist, is based in Lagos.

President Goodluck Jonathan is leaving a solid economic legacy, Minister of Finance Dr Ngozi Okonjo-Iweala said yesterday.

According to her, in spite of the various challenges facing the country, the economy will not collapse.

The Minister spoke in an interview according to a statement by her Special Adviser on Communications, Mr. Paul Nwabuikwu.

She said: “Despite the economic challenges the country is facing, the Jonathan administration is leaving some solid economic legacies for the incoming Buhari government.

“So the allegations that the economy is in ruins are absolutely untrue.

“The significant achievements in several sectors attest to this. We cannot take away the fact that the Jonathan administration, in spite of the challenges caused by 50 per cent decline in the price of oil, has made a clear and measurable difference in many important areas and anyone who says nothing has been done and nothing is being left behind is being very unfair to facts and to history.

“Attempts to rewrite history will not stand. You cannot just wipe the slate clean for political reasons. We are not perfect but no one can take away the fact that we are leaving some good legacies behind.”

The minister also advised politicians and opinion leaders not to make negative calls on the state of the economy because negative and incorrect comments on the economy can have negative impact on the exchange rate and the stock market in addition to reducing investor confidence.

“These negative and unsubstantiated comments are not wise because they can lead to what we do not want for the economy.

“There is nothing wrong with factual assessments of the economy; I have always told Nigerians the truth about the economy. But sweeping and negative statements are not in the interest of the country.

“The statements being made by some personalities about the economy collapsing are not only incorrect they are also potentially dangerous,” she said.

Federal High Court in Abuja was yesterday urged to order the imprisonment of Finance Minister, Ngozi Okonjo-Iweala.

The request was made by a group, Centre for Social Justice (CSJ), whose lawyer, Kingsley Nnajika, argued its motion for committal (Form 49) filed against the minister.

Nnajika contended that the appropriate order to be made was that of committal for Mrs. Okonjo-Iweala’s failure to obey a February 25, 2014 judgment of the court, directing her to provide details of statutory disbursements to some federal agencies.

CSJ had sued the minister upon her refusal to honour its request, made under the Freedom of Information (FOI) Act, for the release of details of statutory transfers in the 2013 budget  to six Federal Government’s agencies.

The agencies include the National Judicial Council (NJC), Niger-Delta Development Commission (NNDC), Universal Basic Education Commission (UBEC), National Assembly, Independent National Electoral Commission (INEC) and the National Human Rights Commission (NHRC).

In his judgment in the suit on February 25, 2014, Justice Abdulkadir Abdulkafarati upheld CSJ’s claim and ordered the minister to, among others, supply the information requested by the applicant.

Despite being served with the court’s judgment and enrolled orders made pursuant to the judgment, Mrs. Okonjo-Iweala declined to obey the judgment, forcing the applicant to issue Form 48 (notice of consequence of disobedience of court orders) and Form 49 (motion for order of committal).

Moving the Form 49 yesterday, Nnajika argued that the orders of the court were unambiguous in relation to the directive for the minister to supply it with its requested information.

He said it was disobedience to the court’s directive when the minister argued, in her affidavit of compliance, that she had written to the named agencies and supplied acknowledgment copies of such letters.

“The order did not say the respondent (the minister) should give us acknowledgment copies of letters written to the agencies. The case lasted about one and half years.

“The respondent never said she had no access to the information we requested. Having failed to comply with the order, the court is left with no option than to make an order, based on our Form 49 already filed, committing the respondent (Finance Minister) to prison until she comply with the order of the court,” Nnajika said.

Respondent’s lawyer Abdulhameed Ibrahim urged the court not to grant CSJ’s request on the ground that the minister did not deliberately disobey the court’s order.

 He said the information requested by the applicant were not within the direct reach of the minister, which informed the letters written to the affected agencies.

Ibrahim, in the affidavit of compliance, urged the court to give mandatory orders, mandating three of the recalcitrant agencies to comply with the request.

“Three bodies, namely NNDC, NJC and the National Assembly, have refused to accept and acknowledge the request. Only a court order mandating the other three cooperative bodies will compel them to furnish the applicant with the necessary information,” Ibrahim said.

Justice Abdulkafarati fixed ruling for June 3, 2015.