Nigeria's economic moves

Regarding the article ``Nigeria's New Leader Turns Back the Clock on Market Reforms,'' Jan. 12: The measures announced in this year's budget speech by Nigerian head of state Gen. Sani Abacha are not intended to abandon market reforms. They are designed to solve the immediate problems of the economy and make free-market reforms possible and beneficial to Nigerians and their trading partners. These problems include an intolerable budget deficit; decline in output caused by high interest rates; stagnation of employment; undervaluation of the local currency, the naira; and consequent inflation fueled by an increase in the money supply.

It is not true that ``a ban was set on movement of foreign currency into Nigeria.'' The government has merely decided that foreign exchange transactions should be carried out through the Central Bank or its agencies to neutralize the activities of speculators who lodge large amounts of naira in savings accounts to earn interest, in some cases at the rate of 60 percent. In view of this, it has become necessary to lower the interest rate to between 12 and 15 percent. This would also make it easier for prospective investors to obtain credit on easy terms to expand economic activities, provide employment opportunities, and increase production.

Other steps being taken to address the problems include decreasing government expenditure, enhancing revenue generation, reducing the budget deficit, providing financial incentives to productive projects, and improving infrastucture. Zubair Mahmud Kazaure, Washington Nigerian Ambassador to the US

Your letters are welcome. For publication they must be signed and include your address and telephone number. Only a selection can be published, and none acknowledged. Letters should be addressed to ``Readers Write,'' and can be sent by Internet E-mail (200 word maximum) to OPED@RACHEL.CSPS.COM, by fax to 617-450-2317, or by mail to One Norway St., Boston, MA 02115

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK