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Should Nigeria Give A Loan To Sao Tome And Principe?

THE PUNCH NEWSPAPER

Published May 14, 2009

http://www.punchontheweb.com/Article-print2.aspx?theartic=Art200905142573775

Yar’Adua seeks N’Assembly’s approval to lend Sao Tome and Principe N1.45bn

President Umaru Yar’Adua has asked the Senate to approve a $10m (about N1.45bn) loan to the Democratic Republic of Sao Tome and Principe to assist the country in addressing some socio-economic problems.

The President made the request through a letter addressed to the President of the Senate, Mr. David Mark, which was read on the floor of the Senate on Wednesday.

Yar‘Adua, while urging the Senate to approve the $10m grant, said the amount would be sourced from his contingency vote.

He said, ”The Senate President and the distinguished senators may kindly wish to note that the government of the Democratic Republic of Sao Tome and Principe, through its Prime Minister, Dr. Patrice Emery Trovoada, made a request for a soft loan of US$30m from the Federal Republic of Nigeria in March 2008.

”The loan is to assist the government address some socio-economic difficulties in the country.”

According to Yar‘Adua, he had directed the Debt Management Office to evaluate the request and it had advised that the soft loan could be considered based on some stated reasons.

He said Nigeria‘s assistance to Sao Tome and Principe, a strategic maritime neighbour, anchored in the framework of the Joint Development Zone, would strengthen and consolidate the security in the Gulf region.

It would take into account the geopolitics of international oil crisis and economic interest of Nigeria.

He noted that, ”By the nature of the request, especially the emergency that the DRSTP faces and considering the relationship between Nigeria and DRSTP, the soft loan could be interest free, while the loan would be repaid within four to six years.”

COMPARING THE TWO COUNTRIES

INDICATOR                             NIGERIA                  SAO TOME AND PRINCIPE

Population                          148.1million                     0.2 million

Infant Mortality Rate       100/1,000 live births 77/1,000 live births

Life Expectancy                            47 years                     64 years

% of population under nourished 9%                      10%

% of population with access to       

improved water sources               47%                      86%

Source: Population Reference Bureau 2008 World Population Data Sheet

INDICATOR             NIGERIA                        SAO TOME AND PRINCIPE

Under five Mortality Rank 8                                 38

Under five Mortality Rate 189/1,000 live births 99/1,000 live births

Adult Literacy Rate                 72%                                 88%

Primary School Enrolment 63%                                 98%

GNI per capita                 $930                                 $870

Source: UNICEF State of World Children 2009

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53 answers

How many African countries are giving out loans in this critical period amounting to that sum without interest?. Guys, these leaders are out of their minds. They are just simply confused.

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I don't think there is anything wrong with giving out this loan. The amount in question has no direct impact to our economy.

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I hope this revelation by lager puts things in perspective.

$10m is tiny in the scheme of things. That said, it should only be spent if Nigeria as a country (not individuals) can get an overall benefit from it, or if it truly benefits the Sao Tome citizens and not some corrupt officials over there.

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Thanks jare Chidi, no mind her, she thinks she's smart, can a one-eyed man pluck his eye for a blind man?

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Fg should go ahead and give them a loan. The benefits would outweigh any inconvenience.

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shai , if the anwsers to the following questions are YES, the FG can go ahead to lend for their socio economic development.

1. Do we constant and stable electricity ?

2. Do we have good and motorable road ?

3. Are all graduates guaranteed employment as soon as they graduate ?

4. Are our hospitals fully equiped ?

5. etc lots of questions to be asked.

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I quite agreed with the Loan, but I am lost here. The one OBJ gave them, has it been recovered and who, where is it reported?

God bless Naija area!

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u are correct. in fact i am the no 1 here.

if i may ask, why are we giving out this money? wht is the purpose of this loan? maybe for them to fix their roads, electricity, schools etc and on that note, nigeria has fixed all her problems to encourage others.

is it possible that a father whose children are hungry lend out money to another father to bu food for his household?

let us continue decieving ourselves. soon we are going to give loan to america.

nigeria and nigerians are destitutes all over the world yet we give out loans. semi madness.

what impression are we creating here? can a man who has scare in his eyes remove another man's scare?

can a blind man lead a blind man?

the situation here in nigeria represent nothing but lack. can u give what u don't have?

do u know this country in question? don't they have good roads, electricity, good water and security in that country?

nigeria sometime ago gave loan to united arab emirates but today look at dubai. malysia's major revenue is palm oil and this was exported from nigeria but look at malysia and nigeria today.

we must begin to face realities. non of our schools is recognized in africa talkless of outside and you do not see the need for emergency in that area.

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I remember we gave some money to Ghana during OBJ show.

Have they collected that one from backyard? If not, then where is the interest?

Are they trying to re-initiate capital flight of fancy?

When can we ever hear the truth in this country?

Is anyone interested in a new refinery in Sao Tome?

Is that what the money is going to construct?

Who gains? Who loses?

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This is not the first time that Nigeria Govt. will be behaving like Father Christmas to Sao Tome. I remembered that OBJ gave the country a loan during his second term. But what we should be interested in is whether that loan was repaid? I doubt it if the reporter who wrote the article was aware of this. Knowing the capacity of the average Nigerian civil servants for corrupt enrichment, the loan might not have been repaid or the repayment might have been diverted to private accounts abroad.

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C'mon guys; N1.45 billion; Naira?

Are there Christians there? Were Oyedepo & Adeboye to get really serious, they could raise this fund in a few fire-power seeding services.

Winners, RCCG people, where're you? Brothers/Sisters in the faith in little Sao Tome need you, and now.

Let's lend them the money; but let's see the terms; it's a saving for the economy; the money you don't lend in Nigeria, government officials will almost certainly embezzle.

Right, it's difficult to look beyond the disgrace the Nigerian government is; but consider this an investment, eh.

Let them have US10 million; that's chicken feed in the world of the rogues in Abuja.

.

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10 million dollars won't make a dent in the agriculture industry in Nigeria. What Nigerian farmers need is actually better distribution (road network) and a market for their goods. We already fertilizer distribution and stuff.

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Given a loan to sao tome is not bad in of itself. The key question is what does the Nigerian populace (and not those in power) get in return. The loan could turn out to be a good investment, and could also just become another avenue of waste.

Personally, I feel they should give them the money . What is the worst that could happen, that wouldn't occur if we acted otherwise?

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Hey Guys? Whats this rush about? It is actually great that your president is waking up to the realities of international struggle for resources. I simply tot he was asleep. The fact remains that Sao Tome has oil resources, the black gold of the world. The US is rumoured to have broken into Iraq for this, who says they won't invest in Sao Tome for oil, it is even a simpler gig than going to war. It is not only US that is interested in resources U know,am just calling them cause everyone likes to? every progressing country is.

My point:- Sao Tome knows Nigeria can not say no to a loan request, not just because of Nigeria's investment in the her oil industry, but because Nigeria would not want to loose maritime territory too. If another country gets involved in Sao Tome's oil which is mainly offshore, you will soon start seeing the kind of territorial loss we experienced with Bakassi. Infact we will be at war with Sao Tome, with some western country behind pushing them to fight and giving them weapons. Do you know that the bulk of the oil industry in Nigeria is going Deep Offshore? Why do you think Nigeria recently requested to extend her Maritime Boundary from UN? If Sao Tome and Principe could be inspire to be at odds with us, then some one could find a reason to deny the extension in UN security council on the basis that Sao Tome is complaining that the extension falls into international waters.

Most international loans are never given just for the sake of goodness? Including those Nigeria has been getting? What do you think bound Obasanjo from saying no to the loss of Bakassi? Is it that he loves giving out chunks of our territory? Or do you believe the west gives loan on basis of need? For example South Africa and Zimbabwe are currently excluded from aids, loans and contracts from the European Union. Is it because people are not suffering gravely in Zimbabwe and South Africa? I would have thought our president a big fool if he said no to that loan request, infact we should be up front in offering them loans to ensure there debt to us is more than they can pay in a jig, then they will never question our interest. That is what Britain and co has been doing to us for Decades.

It is high time Nigerians realize that the International Ground (the rest of the world really) is worse a jungle than our petty ethnic politics. Even our ethnic politics has been manipulated and designed in such a way that the British feeds from it (Your Royal Dutch Shell) and it is normal all over the world. Do you realize that the United Nations is not an authority but just a forum, nonbody stops u form preying on another country. It is a shame that we sit less than a hour a way while China is dominating the economies in Congo, and providing more than 50% of goods in west Africa. We have to proactively search for and compete for resources in other countires. The only trouble is that we still do not understand what resources are for, that's why we waste the ones we have!

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I'll give you a dirty slap if I lay my hand on u. Ain't we entitle to our opinion again? Why're you calling nairaland fools just because they have different opinion? What have I benefited from the loan Nigeria got from other countries? Can you give account of them? You need to engage your brain next time before posting here. Gerrout! U imbecilic dongle

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I talk am say this man called YAR ADOOM go lead this already battred Naija to doom,  Imagine a country without electricity,roads,railways etc,yet he wants to borrow to a country better off than his.He should fisrt remove the "yama yama" in his eyes before doing that to others.They stay in that ABUJA with good roads,constant electricity,hospitals etc and loot our collective wealth,whilel we from the Niger delta dont even see electricity on average of one full day in a month.God will surely bring his judgement on all those who have continously subject us to this hardship.

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Some Nigerian's god is their belly.

Your Elites steal money and you sit there speak about your leaders in bad light. Who is right Our Leaders or We the Citizens. Dont you know that a good gift turns away wrath?

We keep saying we want more, what have we giving to Africa with all our money?

No one comes to nigeria because the people are hostile. Most of the ones you see come are coming to rob you with the same gift.

Nigerians had a hard president in OBJ they complain

We have now a gentle president in Yar Adua just listen to us speak.

OUR TECHNOCRATS STEAL MONEY AND SELL NIGERIA BUT WE THE PEOPLE WILL NEVER SEE WHERE THE MONEY GOES BECAUSE WE ONLY SEE OUR LEADERS AS THEIVES. SO I HAVE ASKED WHAT MONEY DID OUR FIRST LEADERS STEAL BEFORE THEY WERE KILLED BY US ?

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I don't think this is what we should be talking about let us talk about the privatization of our four refinenery to four different coy and bum our fuel problem will be over remember out almighty NITEL? Please can someone raise this as a thread?

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The problem of my beloved country nigeria sorry Nigeria is not money in fact we have too much of it so lending it out is not a problem. I believe we can even lend to the united Kingdom.

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This same money cld be used as loans to our youths with idea, given to the farmers for better planting, used to invest in small business in Nigeria and now they wanna give it to another country.

Chicken brain leaders of our.

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Nigeria is bleeped up!

When someone cant boast of Eba for dinner, and wants to buy a dog Rice and Turkey, then that person must be mad!

Nigeria is bloody mad!!!

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Why give a relatively small country that large bailout when we still have our own financial crisis? No, we should not bailout anybody; well, until we are stable.

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the amount isn't that huge. folks seem to be overreacting.

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after they give the loan and Sao Tome uses it to rebuild their country, wont Nigerians rush there to reap these same benefits?

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I think there is need for politeness and courtesy in a public forum like this. Not only this, everyone should be entitled to his or her own opinion. In as much as I respect your own opinion, I think you went to far by calling others idiots and fools simply because they have a different opinion.

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My fellow Nairalanders

There is absolutely nothing wrong in lending your neighbours money, BUT DON'T BE DECEIVED. Some people are actually out to benefit from the loan. Nigerian leaders care less of their "Children"(Nigerians) not to talk of their "Neighbours"(Sao Tome & Principe).

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Yes, since our so called Government can not repair our roads (e.g. since the 1960's, Onitsha/Benin Road is still the way the British left it, imagine the site - shame!! What about Accidents/deep boreholes in the middle of that road, don't even mention my dear, shame!! ).  Should we talk about regular supply of electricity and water plus modernizing our schools, colleges and Uni that Nigerian citizens are entitled to?  Do Nigerians have rights in their own country?  News to my ears!  Well, its better they loan it out at least, this generation or the next generations of Nigerians will die happy knowing where their money is rather than allowing the thieving politicians to hide it away in their secret bank accounts all over the world.  To the poster I'm asking which one is better?  Knowing where our money is, and who is holding it, is the right thing to do for now as they will definitely pay us back or our children (because of the International nature of the Contract). However, leaving it for the thieving politicians that have no shame and in a country where no one is ACCOUNTABLE, even the President, please not a good idea as one of them would definitely come up with lame investment ideas/excuses that would see our money miraculously disappear in thin air that, I would not support. Nigerians have suffered enough from the evils of these politicians and we should not make it easy for them, please!

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I think its a good thing for Nigeria lending to Sao Tome and Principe , we should start playing and represent the giant of Africa we claim to be. Even one Nigerian can lend that money out and its not like it so much amount for a country like ours however its business and we stand to gain out of it, so why not ? NL wake up and post real fact, people should think outside this box

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i now see there are many idiots and fools on NairaLand. When Nigeria goes asking for loan legitimately from other countries, dont we get considered and they give us? What is there in Nigeria helping another country genuinely and legitimately? I think some people here are just illetrates and cant think or reason deeply. I am just short for words at these kind of responses.

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@post

Sincerely, I was suprised to see some nairaland experts on Nigerian politics not understanding the age long, simple and the most elementary arithmetic of foreign policy and economic diplomacy game

Again, I must confess that foreign policy issue is elitist in nature, as we used to say, "It suffers low clientele support. The ordinary man does not care what goes on outside Nigeria border, unfortunately most of the reasons for his suffering are determined outside the border of his country.

Anyway, Nigeria's romance with Sao Tome and Principe is strictly economical. When I read their request for loan, I was very happy, yet I wonder why Nigeria cannot give them all the $30 million they requested. But when I read further, I realized that Nigeria will give them the money batch by batch, $10 million first and others will come later.

As someone has rightly observed, there was a joint agreement and venture between Sao Tome and Nigeria on Oil exploration, production and marketing purposes.  To say the least, the agreement is in Nigeria's favour. Sao Tome is an oil rich country that is attracting many actors including the United States. The truth is, if Nigeria failed to give them the money, there are many countries that are ready to give them, infact, our major competitor in that country then was the United States, but we were there before the Bush Administration re-focus American Energy Policy in the Gulf of Guinea. The first and foremost objective of AFRICOM is to protect US energy source in the Gulf of Guniea and then Terrorism.

Maybe I should digress a little, the prospect of the Joint Venture between Nigeria and Sao Tome in Oil exploration was behind the floating of Transcorp. The idea is to have a Nigeria multi national corporation that will compete with other multinationals in Africa most especially in Sao Tome and our other areas of influence like Liberia, Sierra Leone etc.

Today, most of the Multinational corporations (MCN) here in Nigeria and else where were floated through the support of the various foreign governments to explore resources in other lands and to maximize the benefits for their countries, that is why they repatriate profits to their mother countries.

The discovery of oil in commercial quantity and Nigerian involvement was irresistible for the Sao Tome Army and they took over government with a view to undermine the Joint Venture and bring in other countries to do the work for them (apparently the Sao Tome Army was sponsored by other interested state actors). Sao Tome is a country of 300,000 thousand population and they didn't have means (capital and the technology to transform the huge oil deposit reality) to invest required capital to transform the oil rich potential to dream.

It is high time Nigerians realizes that to be relevant in the 21st century, Nigeria must be a player, active player for that matter. I read in the news that during Jacob Zuma inurguration, Nigeria president sat among the crowd of other African leaders which is quite unfortunate, just about three years ago, other African leaders always come to Abuja to pay their homage to Obasanjo, infact, OBJ was demi-god in West Africa, for the first time in African diplomacy Gaddafi became African Union Chairman because Nigeria went to sleep.  Obj attended G8 meeting twice and spoke for Africa, today our president was not invited for G20 summit.

We must re-invent ourselves, we must take our place in the comity of nations, we must not abdicate our responsibility, we have sacrificed for Africa and we are still sacrificing, but no one should deny us our right of place in Africa and in world affairs.  

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yar'adua is a fool period!!(anyway we all know dere's another reason for this)

wats up wid the life expectancy "47" that's way too low it should be 74 or something higher

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Hell yeah! We should also charged them "HIGH INTEREST" like the IMF, Paris Club, and World Bank charged us in the late 70's. (We are are still paying for it. even after much of the debt has been forgiven)  So that when they default on the loan, We would now own all their land with its speculated potential oil reserves. OOHand it is a beautiful vacation spot. We should even give them more money sef! Before some corrupted politician decided to cart it away.

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ewooooooooo!!! THEY GIVING OTHER PEOPLE LOAN?? AND THEY DOING NOTHING ABOUT OUR LIGHT/NEPA SITUATION?!?!?

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Can you now see how Hausa people think? This yaradull brain wants to use the tax payers money do santa claus when there are several undeveloped parastatals in the country. I can't wait to find my way out. Enough is enough

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What are the wider implications of giving this loan?

I think Yar'adua's government is doing this to gain more advantage in the Nigeria - Sao Tome Joint Development Zone (JDZ) in the Gulf of Guinea in the Atlantic Ocean. $10m is a reasonable investment if it will get us increased share or benefits from the crude oil resources off the coast of the country.

The comparisons of the countries in terms of life expectancy is unrealistic. $10m will not cause a significant dent in the human development index of Nigeria but will likely benefit Sao Tome more and more importantly, can be used as a persuasive tool to get better terms for Nigeria in the JDZ resources.

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Just look at the life expectancy of both countries. Its liks Yar Adua wants to increase theirs while decreasing ours.

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The population of Nigeria is still drawing them back but they will eventually get there. Believe me.

People compare us with India and China in Population. No You dont Check it that way. We are the most populous in Sub-Saharan Africa and to my Knowledge , None of the countries with up to half of our population is doing that fine. We know how to blame the govt but not ourselves. Who are the Govt ? I recall when i wanted to do my Drivers Licence In Onitsha. It took me over 7000 to process but i saw 1, 200 written on it. Good. I am sure the federal govt wasn't aware. Its my duty to find the appropriate authorities and report that issue but i didn't. Now that blame goes to me too. Even if the authorities wont listen, they will be forced to listen when 500 people reported the same issue. Maybe we masses should start doing smoothing to improve our govt. We dont sit back and expect results. Things dont work that way.

Back to the topic. Nigeria is better of than that small country with no resources. Besides that money will end up in someones bank account in London Or Switzerland. Not like our opinions Matters anyway.

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@Jumobi

This particular loan is interest-free.

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But not at this period that our economy is in great danger.

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It is absolutely uncalled for. How can a government which has not been able to tackle its own internal problems step out to help others. It is hypocrisy of the highest order. Yar'Adua should concentrate his magnanimity in solving fuel crisis, security problem and electoral problems, etc in this country first if he has anything to offer otherwise posterity will not hold him blameless (whether he is prepared to govern or not, he need to wake up).

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maybe there's a benefit to that. Look at it as an investment. ALl these Developed countries are powers because of the interest rates they get from loans. Even broke people invest in stocks

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is simple give them the money and siphon their oil rich block to Nigeria.

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could it be possible that this is ploy by our crooked leaders to siphon money out of the country under the guise of gving loans?

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nigeria sao tome Principe joint commission will fetch Nigeria hundreds of millions of dollar annually. nigeria controls 60% of oil and gas proceeds from the treaty. to whom much is given much is expected. remember OBJ had to send soldiers to restore a civilian govt was toppled by soldiers in 2003.

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There is absolutely nothing wrong with giving another country loan,what our gluttonic leaders need do is to set their house in order before they venture out.

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Nigeria= misplaced priorities

$10m portable water in my community.

what a waste!

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is possible that there is an agreement that nigeria must not move forward so let them give the money to countries that are moving forward.

remember, nigeria sometime ago gave loan to united arab emirates and today dubai and other states in that country is the dream of every nigerian. today all our politicians are investing their funds in dubai. if there is any country in the world today that requires help, it is nigeria. a country in darkness shld be praying for other countries to help her out of darkness.

there is absolutely no accurate record of ppl dying in nigeria because i know 80% of our rural areas are out of the govt's rada hence no record.

this pdp lead govt is just out to give eye services to the international world. maybe, this is part of the rebranding excercise.

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