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Analysts: Reforms in Nigeria Threatened

Posted by By Katharine Houreld, Associated Press Writer on 2006/08/07 | Views: 613 |

Analysts: Reforms in Nigeria Threatened


The shock resignation of Nigeria's former economics chief could jeopardize anti-corruption efforts in Africa's largest oil producer, despite promises by her successor to continue reforms, international analysts said Monday.

Analysts: Nigerian Minister's Resignation Endangers Economic Reforms

LAGOS, Nigeria (AP) -- The shock resignation of Nigeria's former economics chief could jeopardize anti-corruption efforts in Africa's largest oil producer, despite promises by her successor to continue reforms, international analysts said Monday.

Ngozi Okonjo-Iweala stepped down as foreign minister Thursday after weeks of having her responsibility stripped away. She was replaced as finance minister just over a month ago and moved to the foreign ministry, then on Wednesday was relieved of her position as head of a high-level government economics team.

Iweala was known abroad as a corruption buster and seen as a key figure in helping secure the cancellation of US$30 billion of Nigeria's debt, Africa's biggest-ever.

"As far as the international community was concerned, Ngozi was the face of reform in Nigeria," said Antony Goldman, a London-based market analyst. "International banks, creditors and finance ministries all looked to her."

Nigeria's new finance minister, Nenadi Usman, promised to continue to implement reforms on Monday but was careful to emphasize her personal loyalty to President Olusegun Obasanjo.

"It is the president's reforms and I work for him. So naturally I must do what he wants," Usman said as she left a meeting on pensions in the commercial capital of Lagos.

But Jibrin Ibrahim, head of the Center for Democracy and Development, a group dedicated to good governance, said Iweala's resignation "dents the government's credibility on economic reform. She (Iweala) is personally so central to the whole process."

He said that the removal of the former World Bank executive -- Iweala was a vice president -- to the Foreign Ministry, an area that was not her specialty, was a sign of a power struggle within the ruling party. He noted that the presidency publicly rebuked Iweala when she spoke of possible corruption in her new ministry last month.

Many Nigerians had seen Iweala as a possible presidential or vice presidential candidate in next year's elections.

"It was a proposal that could easily gain ground internationally and it would be more difficult to stop it then," said Ibrahim, saying that many foreign donors backed her economic reforms.

Obasanjo is barred from running by term limits and has not indicated whom he would support in the race.

As finance minister, Iweala had used the windfall from high oil prices to pay US$12 billion owing to Nigeria's foreign creditors. Nigeria was relieved of the other US$18 billion, the largest such deal in Africa.

Working with Usman, Iweala also built up reserves of foreign exchange, facing stiff opposition from officials who wanted immediate access to the money.

Charles Doukubo, a Lagos-based political analyst, said few believed Iweala left for undisclosed family reasons as stated in her resignation letter.

"She had a family before she took this job and her children are all grown up," he said. "She is a career woman."

He suggested that her removal from the finance ministry and eventual resignation was engineered by members of the ruling party eager to gain easier access to the treasury ahead of next year's elections. Usman, although seen as a capable economist, does not have such a heavyweight reputation as a corruption-buster among the international community.

Oil-rich Nigeria, tied for sixth place as most corrupt country in the world in an annual ranking by watchdog Transparency International, recorded revenue of US$45 billion last year and is due to hold elections in April.


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