From ISAAC ANUMIHE, Abuja
Thursday, May 14, 2009

•President Yar'Adua
Photo: Sun News Publishing

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Following the deficit in the 2009 budget, Nigeria is considering another loan from the World Bank to finance the shortfall in budget revenue.

In an interactive session with newsmen in Abuja, yesterday, regarding the Post Spring Meeting of the Bank in Washington, the World Bank Country Director, Onnoh Ruhl emphatically stated that the current financial crisis which may not abate in the nearest future has impacted negatively on the economies of most countries, especially African countries, who are the hardest hit.

This, he said, has left in its train about 90 million Nigerians poor and less Foreign Direct Investments (FDI),
So, as a result of the reduction in oil price earning occasioned by the global financial crisis, Ruhl said, Nigeria is considering requesting for a World Bank loan to enable it finance the budget deficit which it is finding difficult to fund, noting, however, that the Bank would accept such request.

"It's true that the possibility of such financing was mentioned. We would consider a request if it comes as these are unusual times."

Although Ruhl admitted that the global financial crisis was not manufactured in Africa but in Europe, he lauded Nigeria's wisdom in piling foreign reserve which as at the last count was $47 billion. He said but for the reserves, Nigeria could have been in a serious financial mess.

On the suggestion that Nigeria should print more money to finance the budget deficit , Ruhl dismissed that thinking on the grounds that printing more money now will rather fling the country into deeper consequences. It will not only cause inflation, he said, it will create a major economic problem.
Regarding the planned withdrawal of subsidy of petroleum products prices, Ruhl, who shied away from whether it is appropriate or not to remove subsidy but added that Nigerians should find out who is actually getting the subsidy and for what project it is used.

According to him, malaria has become endemic in this part of the world and the bank has embarked on measures to bring it under control through a campaign. He said that the World Bank has committed between $600 million and $1 billion in the malaria eradication campaign in Africa and Nigeria has equally spent over $12 billion to fight malaria scourge annually.

Which budget deficit? What projects have been executed with the ones allocated so far? Infact, release of funds to ministries/parastatals should be done installmentally. Further disbursment should be made based on proper utilization of previous one.
A monitoring committee should be set up to inspect projects and confirm proper utilisation of fund before further disbursement. A situation where Ministries/parastatals share money without implementing projects is disheartening and has left Nigeria with poor infrastructural development.