BALANCE OF PAYMENTS

A speech given in the House of Representatives, Lagos, on 18th November, 1961.

On the contrary, the Hon. Minister of Finance made a most heretical statement in London before he went to Moscow and it is not surprising that he had a very cold reception in that cold country. He said, ‘I am going behind the Iron Curtain, but I assure you’ (he was addressing London businessmen) ‘I am going to return to this country with my colour intact and untarnished,’ Was that necessary?

And this leads me to the third thing we must do. Our external and overseas trade must be re-constructed to connect areaswhich are at present untounched by us. I have in mind countries behind the Iron Curtain: I must say in this connection that I feel relieved to read the remarks of the Hon. Minister of Finance when he said that, so far as the Government is concerned, money has no earmark and that the Government is prepared to trade with any country. That is good news and is in accordance with the advocacy of the opposition this past year. When I say that we should cut down on our imports I do mean both visible and invisible imports. In this connection I would like to call attention to the inexpert and suspicious manner in which Government has gone about its proposed Pools monopoly, Fort-nine per cent of the profits on Pools when the monopoly is introduced will still go abroad and this will constitute invisible imports of the same amount. When the facts are known it will be agreed that his arrangement is absolutely unnecessary.

First, it is well within the capacity of all our Governments and Nigerian Pools proprietors to subscribe the total authorized capital of £200,000 for the Nigerian Pools Company Limited. Secondly, the Continental Finance Cie S.A., Switzerland, which is the Government’s partner and Managing Agent in this deal, is not only not registered in Switzerland but its proprietor is a man of bad reputation who has never before handled a pools business. I have documents here in my possession for the examination of the Hon. Minister of Finance whenever he likes (though I will not part possession with them) to establish that Government is only being taken for a ride on this Pools venture by some international crooks, I repeat, international crooks and that the proposed drain on our funds to overseas businessmen of extremely shady character in uncalled for and should be stopped now! In other words, as ‘one of the many means of easing our adverse balance of trade, Pools venture should be a monopoly of the Nigerian Government and of Nigerian citizens who know something about Pools transaction.

The pattern of our capital and recurrent expenditure urgently needs looking into. Why should we spend, for instance, about £25,000 to £30,000 per mile as- we are at present doing on the Shagamu-Benin road when I am sure we could build the road for half of its present cost? I understand that a firm of international repute; which submitted the best design, only quoted £3 million for this bridge.

If the Hon, the Minister of Finance is conscientious about this, I will certainly give him not only the name of the firm but the name of the African Director of that firm. That is a bargain struck and I hope that one of us will have to report to this Honourable House. But our Government, as I was saying, in its reckless waste, rejected the offer of £3 million and gave the bridge for much more. Perhaps the Hon. Minister of Finance will enlighten me further, as he said. In the face of threatening bankruptcy for the nation, must we continue to indulge in some of the wasteful heritages of our former Colonial master? The present time calls for austerity if we are to get ‘over our financial difficulties and promote the welfare of our people.

If we are to attract assistance from abroad we must show at home that we ourselves mean business. What will scare away foreign investors is not the threat of nationalization but criminal complacency and brazen mismanagement and waste of time. Certain privileges have hitherto been enjoyed which call for a review. It seems to me that the time has come when, firstly, all those who occupy Government building and quarters – the Governor-General ‘and the Prime Minister exempted – should pay an economic rent for them. Secondly, certain allowances, like basic allowances for cars, especially for those Ministers, Parliamentary Secretaries and officers who do not have to do a good deal of traveling should be completely abolished. Thirdly, allowances paid to Hon. Members of this Parliament should be slashed by at least 50 per cent. The truth is that, at the rate we now do business, we do not at all earn our keep.

The Hon. Minister of Finance, Chief Festus Okotie-Eboh, is by nature a boisterous and exceedingly optimistic person. But our economy and finances do not have the buoyancy which exists in his imagination and which he has relentlessly sought (especially this morning) to convey to the country and to Hon. Members of this House.

I have repeatedly advocated that the economy of the country should be planned and regulated. By planning I do not mean the sort of exercise that is being performed now by Mr. Prasad and another gentleman from America. By planning I do not mean a mere series of budgetary proposals covering a period of five years or so. That is a job which Regional Governments may well look after. When I speak of planning, or when any intelligent person speaks of planning, it ‘is meant to be state planning and regulation of all the aspects of the country’s economy: production, consumption, exchange and distribution.

CONTINUES NEXT WEEK

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