Posted by From Juliana Taiwo in Abuja on
Country Director of World Bank, Dr. Hafez Ghanem, has absolved the Bank of having a hand in Nigeria's debt problem.
Country Director of World Bank, Dr. Hafez Ghanem, has absolved the Bank of having a hand in Nigeria's debt problem.
The Brettonwood institution, which washed its hands from the current debt burden facing the country said it only gives soft credits that are only available to low income countries, which is repaid over 30 years with 10 years of grace and carries a service charge of just 0.75 per cent.
Ghanem, who made the disclosure at an interactive seminar with Nigerian Economics Studies Association (NESA) at the University of Abuja and with the theme ‘Official Development Assistance and Development of Third World Countries - World Bank Perspective,' said, that because the credit is soft it looks more like grants.
He said Nigeria's debt overhang stands at $35 billion,
92 per cent of which he said belongs to the Paris Club, while the remaining are those of other multilateral institutions such as African Development Bank (ADB).
He said that World Bank's mission is to fight poverty with passion and professionalism for lasting results and that it has a special focus on Africa and Nigeria being the largest African country.
"Africa cannot develop if Nigeria does not develop not just because of its population and its resources, but also because one out of every five Africans is a Nigerian who is intellectually sound", he said.
Ghanem who attended the seminar with his team of experts covering education, agriculture, communication and economics, explained that the focus on Africa is because it is the only place in the world where poverty is yet to decline.
He said the Bank fights poverty by financing projects in infrastructure, health, education and agriculture among other sectors and by providing advice and comparing experiences of different countries.
He said the World Bank is now working with a new model of development cooperation, which is based on partnership with beneficiary countries and not assistance.
He noted that in the new dispensation, government must be in the driver's seat and encourage the importance of openness and transparency.
Ghanem said the objectives of the partnership is to support Nigeria's reform efforts and ensure sustainability, help reduce poverty, support efforts to achieve millennium development goals and ensure that success in the country impacts the rest of Africa.
He revealed that so far a total support of about $1.5 billion has come from the Bank for the National Economic Empower-ment and Development Strategy (NEEDS) programme of the government, two projects at the cost of $150 million focused on changing the way Nigerian government does its business, 10 projects at the cost of $150 million targeted at growing the private sector (infrastructure and agriculture) and six projects at the cost of $500 million focused on empowering people (health, education and community development).
He said the World Bank believes that for Nigeria to attain the MDGs, its debt should be forgiven, its looted funds returned, adding that the funds must be targeted at making achieving MDGs by 2015 feasible.
Impressed with active participation of the students of the economic department of the University of Abuja, the World Bank agreed to provide the school with computers and Internet facilities.