World Bank Optimism on Nigeria
frank Sinatra | 27.08.2001 13:31
The World Bank are not optimistic for the relief of suffering in nigeria, they are optimistic about a privatisation plan! hooray!
Friday, 24 August, 2001, 16:32 GMT 17:32 UK
World Bank optimism on Nigeria
Pressure is mounting on Obasanjo's government to pursue privatisation
A senior World Bank official has voiced his belief that the political will exists in Nigeria to push through the privatisation of its telephone company Nitel and power company Nepa.
On Thursday, the World Bank approved loans worth $304m (£200m) for Nigeria, most of which is to be used to help the country's fledgeling privatisation programme.
The two projects are running behind schedule and until they are back on track, Nigeria is unlikely to receive fresh IMF funding or debt relief.
The move can be seen as recognition by the World Bank that Nigeria needs help to make these reforms - as the country has always claimed - even as the country's talks with the International Monetary Fund (IMF) are in stalemate.
The World Bank did quit its previous advisory role
Many fear that the erratic performance of both the telecoms and power companies are deterring foreign investors.
Welcome
Nigeria's finance minister Adamu Ciroma has welcomed the fresh loans.
"With these projects, our infrastructure will improve thereby improving the economic tempo, expand employment and reduce poverty nationwide," he said.
A senior World Bank official now believes that the political impetus for privatisation is there.
"From the discussions I had with them a year and a half ago, there was a reluctance there. They are now saying they want to privatise Nitel, that is a major step," Peter Woicke, managing director of the World Bank told the BBC's World Business Report.
More than $100m will go to privatise the electricity distribution system and prepare for wholesale trading of power after the privatisation of Nepa.
A similar amount is to go to help the Bureau of Public Enterprises prepare for the sale of telephone company Nitel.
"Privatising Nepa is extremely demanding, clearly the government is very worried about unemployment, " said Peter Woicke.
He also stressed the success of the Nigerian auction of cellular licences, given the current poor sentiment in international phone markets.
Airway delay
Earlier in the year, a World Bank body advising the government on the privatisation of Nigeria Airways quit, saying that its advice had not been heeded.
Since Nigeria returned to civilian rule in 1999, President Olusegun Obasanjo has mounted a vocal campaign for debt relief.
Past governments have squandered most of the estimated $280bn the country has earned from oil in the past 30 years.
This was on the BBC website business pages. my favourite bit is when the world bank suit said 'clearly the government was worried about the unemployment' - how disgraceful of them.
World Bank optimism on Nigeria
Pressure is mounting on Obasanjo's government to pursue privatisation
A senior World Bank official has voiced his belief that the political will exists in Nigeria to push through the privatisation of its telephone company Nitel and power company Nepa.
On Thursday, the World Bank approved loans worth $304m (£200m) for Nigeria, most of which is to be used to help the country's fledgeling privatisation programme.
The two projects are running behind schedule and until they are back on track, Nigeria is unlikely to receive fresh IMF funding or debt relief.
The move can be seen as recognition by the World Bank that Nigeria needs help to make these reforms - as the country has always claimed - even as the country's talks with the International Monetary Fund (IMF) are in stalemate.
The World Bank did quit its previous advisory role
Many fear that the erratic performance of both the telecoms and power companies are deterring foreign investors.
Welcome
Nigeria's finance minister Adamu Ciroma has welcomed the fresh loans.
"With these projects, our infrastructure will improve thereby improving the economic tempo, expand employment and reduce poverty nationwide," he said.
A senior World Bank official now believes that the political impetus for privatisation is there.
"From the discussions I had with them a year and a half ago, there was a reluctance there. They are now saying they want to privatise Nitel, that is a major step," Peter Woicke, managing director of the World Bank told the BBC's World Business Report.
More than $100m will go to privatise the electricity distribution system and prepare for wholesale trading of power after the privatisation of Nepa.
A similar amount is to go to help the Bureau of Public Enterprises prepare for the sale of telephone company Nitel.
"Privatising Nepa is extremely demanding, clearly the government is very worried about unemployment, " said Peter Woicke.
He also stressed the success of the Nigerian auction of cellular licences, given the current poor sentiment in international phone markets.
Airway delay
Earlier in the year, a World Bank body advising the government on the privatisation of Nigeria Airways quit, saying that its advice had not been heeded.
Since Nigeria returned to civilian rule in 1999, President Olusegun Obasanjo has mounted a vocal campaign for debt relief.
Past governments have squandered most of the estimated $280bn the country has earned from oil in the past 30 years.
This was on the BBC website business pages. my favourite bit is when the world bank suit said 'clearly the government was worried about the unemployment' - how disgraceful of them.
frank Sinatra