BALANCE OF PAYMENTS

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

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 is 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 nationalisation 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.

The pattern and direction of each of these aspects, or departments of our economy must be carefully planned and regulated. It is the lack of such planning and regulation that is responsible for the paradox of a poor Nigeria. Nationalisation of certain basic industries is not an end in itself, but a means to an end. By means of nationalisation or public ownership, the pattern and direction of production, consumption or exchange; and the share of the national produce which equitably belongs and must go to each of the factors of production, will be determined. It may be argued that this end will be equally achieved by planning and regulation without nationalisation. But the naked truth is that, first of all the government has not been doing the type of planning and regulation which we advocate. And secondly, in an underdeveloped country such as ours whose economy is dominated – as has been admitted by the government itself – almost one hundred per cent by foreigners, the planning and regulation of the economy are bound to fail woefully if the weapon of nationalisation is entirely excluded. There is a Motion on the subject of nationalisation, and I shall have more to say on this subject when it comes up. Meanwhile, I want the Government to understand quite clearly that nationalisation is not the same thing as expropriation, sequestration or confiscation, and that no conscientious overseas investor will be scared away simply because we adopt the ideal of democratic socialism, the cornerstone of which is nationalisation of certain basic industries and business undertakings.

If one may cite one or two examples. India has trodden this path as well as a number of other countries in Asia and they still attract foreign investment.

I only wish to re-emphasise before closing that the type of planning and regulation which I have mentioned cannot be formulated by foreigners with capitalistic backgrounds, but by qualified Nigerians who, together with their fellow citizens, wear the shoe of a mismanaged and deteriorating economy and therefore know where it pinches.

CONTINUES NEXT WEEK

 

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