20th June 1985 - ITN News
[size=18pt]UK: Exiled ex-minister Dikko, wanted in Nigeria for embezzlement appeals against extradiction (video clip).[/size]

http://www.itnsource.com/shotlist//ITN/1985/06/20/AS200685009/?s=nigeria&st=2&pn=94&sortBy=date

While Umaru Dikko - the former Nigerian 20.6.85 government Minister found kidnapped in a crate at Stansted TX Airport nearly a year ago (on 5.7.84) - makes a last minute appeal to stay in Britain, three Britons, Angus Patterson, Kenneth Clark and Graham Coveyduck, are being detained without trial in Nigeria.

Intvw Mrs Jean Coveyduck, wife of Graham Coveyduck, on the conditions her husband is being held in. Intvw Umaru Dikko, former Nigerian Transport Minister, who is wanted in Nigeria on charges of bribery and corruption, and who is seeking political asylum in Britain, on the British detainees.

How dare you start a new page without informing me ? There is NO excuse for this lapse, but you are forgiven just this once.

[size=18pt] 5th February 1985 - Toledo Blade, Ohio. Newspaper
Buhari rejects IMF terms for loan[/size]

The Nigerian leader, Gen. Muhammad Buhari, says his country will match Britain;s oil prices even if it means undermining the pricing structure of the Organization of Petroleum Exporting Countries, the Financial Times reported yesterday.

The London business daily reported that General Buhari, in an interview in Lagos, also reaffirmed Nigeria's rejection of the International Monetary Fund's terms for a $2.4 billion loan.
General Buhari was quoted as saying the benefits if membership in the cartel outweighed the disadvantages, but that the 13-nation organization had to be realistic and allow flexibility for member countries in financial dificulties, such as Nigeria.

If Britain's North Sea oil prices dropped, Nigeria, which gets 95% of its foreign earnings from oil, would follow suit, he was quoted as saying, adding: "We will have to do that to survive."
General Buhari rejected monetary fund demands that Nigeria devalue its currency, the naira, by 50 to 60 per cent and that the west African country reduce domestic fuel subsidies, the Financial Times said.
The military leader, who came to power in a Dec. 31, 1983, coup, reportedly said higher prices for food and other items would result from devaluation.


https://www.nairaland.com/nigeria/topic-693700.128.html

[size=18pt]28th February 1985 - Herald Journal newspaper
Nigerian court acquits American woman of illegally exporting oil from Nigeria[/size]

Lagos, Nigeria (AP) - A military court on Wednesay acqutted American businesswoman Marie McBroom of illegally exporting oil from Nigeria. Had she been convicted she could have been executed by a firing squad.
Mrs McBroom, who pleaded innocent to all six counts of the charge, had been in jail for a year and was freed shortly after the acquittal. She went to the U.S> Embassy and called her daughter in New York City.
Dana McBroom Manno said her mother "sounds great. She sounds in very good spirits," and planned to leave Nigeria very soon, perhaps today.

The 59-year-old businessswoman from Jersey City,N.J/, was the first foreigner acquitted of offenses related to Nigeria's petroleum industry by military tribunals established after a coup ousted the civilian government Dec. 31. 1983. A Spanish sea captain has been sentenced to death, and his government is appealing for mercy.

20th June 1985 - ITN News
[size=18pt]UK: Exiled ex-minister Dikko, wanted in Nigeria for embezzlement appeals against extradiction (video clip).[/size]

http://www.itnsource.com/shotlist//ITN/1985/06/20/AS200685009/?s=nigeria&st=2&pn=94&sortBy=date

While Umaru Dikko - the former Nigerian 20.6.85 government Minister found kidnapped in a crate at Stansted TX Airport nearly a year ago (on 5.7.84) - makes a last minute appeal to stay in Britain, three Britons, Angus Patterson, Kenneth Clark and Graham Coveyduck, are being detained without trial in Nigeria.

Intvw Mrs Jean Coveyduck, wife of Graham Coveyduck, on the conditions her husband is being held in. Intvw Umaru Dikko, former Nigerian Transport Minister, who is wanted in Nigeria on charges of bribery and corruption, and who is seeking political asylum in Britain, on the British detainees.

[size=18pt]25th June 1985 - ITN News
Buhari's anti-corruption tribunal convicts British /Arab business woman[/size]

The Lagos Zone of the exchange control-anti sabotage tribunal today, ordered a British/Arab business woman Mrs Mahmet Bahia Bin Chambi and five other companies to refund a total of 2,558,744,902 26k to the Federal Military Government.

In addition Mrs Chambi is to be imprisoned for twelve years for the first count and ten years each for three other charges, the sentences are to run concurrently. Thus she is expected to spend twelve years in jail.

Delivering judgement in a case of an alleged illegal transfer of over 98 million naira Mr Justice Oladipo Williams ordered Mrs Chambi to pay 98,124,903,01k and that she should be deported at the expiration of her prison sentence.

The other companies include Green Engineering Limited as second accused and Uniparts and hardware Nigeria Limited as the third accused.

The other three accused are Nimpex, Sexterin and Unicon Enterprises, Nigeria Limited, respectively who are to refund 492,123,999.85k each.

Mr Justice Oladipo Williams after reviewing the case noted that from all intent and purpose the accused persons had intentionally planned from the beginning to sabotage the Nations economy which he said is punishable under the exchange control anti sabotage decree of 1984.

The other five accused persons who were represented by their Nigerian Directors' were however discharged but not acquitted.

The sentence are subject to the ratification of the Supreme Military Council.

[size=18pt]27 August 1985 - ITN News
Buhari's anti-corruption policies causes collapse of corrupt British Bank, Johnson Matthey (video clip)[/size]

http://www.itnsource.com/shotlist//ITN/1985/08/27/AS270885010/?s=nigeria&st=2&pn=94&sortBy=date

JOHNSON MATTHEY COLLAPSE: A link is established between 27.8.85 the collapse of the Johnson Matthey Bank (which had to TX be rescued by the Bank of England last year) and loans made to a circle of Indian businessmen trading with Nigeria. The trade collapsed when Pres Alhaji Shehu Shagari was swept from power after a military coup on 31.12.83.

[size=18pt]27 August 1985
Buhari was overthrown by Gen. Ibrahim Babangida (aka. IBB ) - who brought the nation to its knees with his 8 years of mis-managment that followed.

It is widely speculated that IBB was sponsored by Western Governments and M.K.O. Abiola who were against Buhari's anti- IMF / World Bank and anti-corruption policies.
[/size]

The only good snake is a thoroughly dead one. This Boko Haram mastermind must be terminated with EXTREME prejudice, as a matter of great urgency.

Nothing personal, Mini-Ayatollah. Justice must be served, and even you will feel a sence of relief when that horrid little creature is put out of its misery.

Jakumo: The only good snake is a thoroughly dead one. This Boko Haram mastermind must be terminated with EXTREME prejudice, as a matter of great urgency.

Nothing personal, Mini-Ayatollah. Justice must be served, and even you will feel a sence of relief when that horrid little creature is put out of its misery.

Are you writing out of ignorance or are you a member of the corrupt clique holding us down in this country?

I have been a Buhari Supporter, but do not even have all these facts. However, I hope Buhari will not contest the 2015 election. He has done his best for us and is too old to present himself again for an election. He should go fish out a young man like him, and anoint him for the Presidency.We need a younger Buhari to save this country

^ No mind Jakumo, he has refused to confirm whether him or his relative were amongst the hundreds of corrupt officials detained by Buhari.

[size=18pt]Summary of General Buhari's economic performance - [/size](sources : data from Central Bank of Nigeria , Wikipedia, elombah news Written by Nebukadineze Adiele 17 March 2011 )

Inflation in 1984 - 39%
Inflation in Aug 1985 on Buhari leaving office - 3.2%
Naira to Dollar exchange rate largely unchanged at N1 = $1.34 on Buhari leaving office (no devaluation of naira)

[size=22pt]Buharinomics - General Buhari’s economic program marshaled out to salvage the nation in 1984[/size]

http://www.elombah.com/index.php?option=com_content&view=article&id=5720:is-general-buhari-the-problem-with-nigeria&catid=36:pointblank&Itemid=83

Buharinomics was General Buhari’s economic program marshaled out to salvage the nation in 1984. He summarized the objective of his economic policy (as articulated in the 1984 budget) as follows: "To arrest the decline in the economy, to put the economy on a proper course of recovery and solvency, and to chart a future course for economic stability and prosperity" (West Africa, May 14, 1984). He had previously done similarly, in March while receiving the visiting Sudanese President, Gaafar Nimeiri. Upon his inquiring of what the new military government had in mind for the nation it then ruled, Buhari said to him: "The priority [of his administration] is for economic recovery, providing employment opportunities, improving people's living conditions, consolidating internal security and ensuring foreign respect" (Africa Now, March 1984). In a nutshell, Buharinomics set out to arrest the decline in the economy and refocus it towards recovery. Buharinomics was to wean the nation off consumerism and profligacy, while channeling it towards frugality and productivity. To accomplish this, the government was to cut down on its expenditure, engage in more efficient restricting and controlling of foreign exchange outflow, undertake the revival of the country's productive capacity (concentration was on agriculture), and broaden government's revenue base.

The first test of Buharinomics was implemented to revive the comatose banking industry and arrest local currency hoarding. In April 1984, the government ordered a change in the color of the Naira. This action was dubbed the “real coup” by unscrupulous business men and politicians who had almost eliminated the need for commercial banking in Nigeria by keeping their moneys under their mattresses or by trafficking them into neighboring West African countries. This currency change, which forced all holders of the naira notes into exchanging them for the new naira notes at commercial banks, infused billions that had remained unaccounted for into the banking industry and eliminated counterfeited currencies, which had inflicted inflationary and other nefarious effects on the economy. This measure had an immediate revitalizing effect in the banking industry and was an unqualified success. Banks that were close to collapsing became vibrant again, to the extent that some of them began to hire hitherto unemployed Nigerians.

To cut down on government expenses, the federal work force was cut by 30% and imports for 1984 pegged at 4 billion pounds (mostly on basic foodstuffs, spare parts, and raw materials for local industries), against 14 billion pounds spent in 1983. To ensure that Nigeria remained respectable on the international business world, Buhari committed to honoring Nigeria’s debt payment schedule irrespective of the limited earning potential of Nigeria. In August 1984, Buhari was on one of his meet-the-people nationwide tours, which he began as soon as the administration got on its feet. Everywhere he went, the people embraced him, coming out en mass and ushering him tumultuous cheers and unreserved applause. In one of his speeches to the people (this one in Owerri), he reiterated Nigeria’s commitment to honoring its debts, the dire economic situation notwithstanding. "The task of this administration is how to persuade Nigerians to understand that for a number of years to come, we would be paying debts, the roads may be long and thorny but we believe that on our shoulders lies the responsibility to save our fatherland from devastation that has resulted from mismanagement" (Newswatch, February 18, 1985).

Buhari could not have been any more correct in his statement above. Assuming Nigeria took no further loans, its breakdown of loan repayments was as follows: 3.9 billion naira ($4.4 billion) in 1985, 3.7 billion naira ($4.19 billion) in 1986, 2.8 billion naira ($3.2 billion) in 1987, until a decrease to 703 million in 1991 (Concord Weekly, May 6, 1985). Nigeria’s precarious financial situation made it impossible for it to finance capital projects and meet up its balance of payment obligations. With oil export pegged at 1.3 million barrels per day by OPEC, borrowing from external sources became necessary. To this effect, Nigeria proposed borrowing 1.795m naira to finance its capital project from the IMF. The patriotism with which General Buhari handled Nigeria’s dealings with the IMF was the highlight and beauty of Buharinomics.

In order to qualify for the loan, IMF gave Nigeria certain conditions which must be met. In 1984 when the naira exchanged for $1.34, the IMF demanded a minimum of 60% devaluation of it. Buhari refused, agreeing only to a "crawling peg"—a mechanism whereby government would realign the currency gradually, forestalling or minimizing economic and social dislocations because of such drastic devaluation of its currency. In addition to the devaluation of the naira, IMF demanded that government took other drastic actions: (a) The government must remove its subsidy on petroleum. (b) It must curtail its expenditure. (c) Government must rationalize its tariff structures. (d) It must put a freeze on its wages. (e) It must put a total end of non-statutory transfers to State governments, (f) Government must at least institute a 30% raise on interest rates—government resisted this because the decline in its revenue earnings and its debt obligations made it almost impossible to raise interest rates without triggering inflation (West Africa, May 14, 1984).

The Nigerian government and veteran economists in Nigeria (like Aluko, Onosade, Okigbo, etc) could not make sense of being asked to devalue its currency when Nigeria’s imports were in dollar and its export (fixed quantity of oil) was also in dollar. The implication of devaluation was that Nigeria would pay more to import lesser quantity of goods than it did prior to any devaluation. It would also export the same amount of oil it exported before any devaluation and derive lesser revenue than it received before any devaluation The impacts of it debt payment would have harsher effect on the citizenry if the naira was devalued. This did not make any economic sense to Buhari; it struck him as an insult on the intelligence of the African. Finance Minister Onaolapo Soleye and Alhaji Abubakar Alhaji who led the Nigerian delegation to the last negotiation in Washington were chewed out by US Federal Reserve Chairman, Paul Volcker, for presenting the Nigerian governments rejection of most of these recommendations. For rejecting the IMF conditions and the loan, the Buhari administration got into the black book of Washington. Already, it had earned the dislike of 10 Downing Street for cutting down Nigeria’s imports from the UK by about 350%. In any case, without the IMF loan, government was still in a bind as to how to finance capital projects and pay for imports, especially spare parts for local industries, food items, etc. At this juncture, the genius and resourcefulness of Buharinomics illuminated to the delight of the African.

First, the administration sent Oil Minister Tam David West to OPEC to seek a raise in the quantity of oil that Nigeria could export. If OPEC agreed, Nigeria would expect to generate extra revenue in the long run from any increase of its oil quota and this would assist tremendously in augmenting the shortfall in the nation’s purse. Professor West came back empty handed—the US and Britain had put pressure on their puppets in OPEC (like Saudi Arabia) to refuse Nigeria’s request.

To counter OPEC’s bluff, the Buhari administration entered into a $2 billion barter trade agreement with four countries. Nigeria daily bartered 200,000 barrels of oil as follows: (a) completely knocked down parts for automobiles from Brazil. (b) Construction equipment from Italy (c) Engineering equipment from France, and (d) Capital goods from Austria. This barter trade took care of the administration’s need to have borrowed money but it intensified the ill will the US and Britain had for Nigeria. By bartering this oil, Nigeria was: (a) solving those needs which the proposed IMF loan was geared toward. Doing so without borrowing or feeling the pains of spending the meager amount generated from its OPEC approved 1.3 billion a day oil export is the stuff an economic wizard is made of. (b) Britain had been cut off as Nigeria’s major supplier of the goods which the countries in the barter agreement sent to Nigeria. (c) The US usurious money lenders were denied the chance to suck Nigeria dry through the IMF loan. (d) American and British oil companies were irate that the oil being bartered would flood the oil market, cutting in on their profits. (d) The oil being bartered was oil that used to be illegally bunkered before Buhari put illegal oil bunkering artist out of business. For once, an African country had put positive economic mechanism in place to salvage its ailing economy without swallowing IMF’s poison pills.

As far as America and Britain were concerned, there was a price to be paid by this Buhari, who thought he was smart enough not to accept subservience to their authority. To begin with, a London newspaper (The Financial Times) published Nigeria’s barter trade agreement with Brazil (which, in truth, was done in secrecy because Buhari treated some aspects of his economic policy as State secret). The British thought it was going to incite OPEC against Nigeria since OPEC as a body did not support oil bartering. Oil Minister Tam David West, in a press conference, said, “If a nation believes it is part of its strategy for national survival to do this [barter trade], why not?” To assure OPEC that Nigeria was not indulging in barter trade in order to pull out of OPEC, he added ”Our strategy is to stay in OPEC and make its presence felt, and work together on programs that will be for the economic interest of all” (Concord Weekly, May 6, 1985). There is more to this barter trade than time will permit one to detail in this piece. For now, it is worth noting that it was the major reason for which Britain and America wanted the Buhari administration overthrown.

[size=20pt]Summary of General Buhari's economic performance -

Buhari reduced Inflation rate from 39% to 3%

Maintained the value of Naira (no devaluation of naira)

Rejected IMF loans and its dictates


(sources : data from Central Bank of Nigeria , Wikipedia, elombah news Written by Nebukadineze Adiele 17 March 2011 )
[/size]

[size=22pt]Buharinomics - General Buhari’s economic program marshaled out to salvage the nation in 1984[/size]

http://www.elombah.com/index.php?option=com_content&view=article&id=5720:is-general-buhari-the-problem-with-nigeria&catid=36:pointblank&Itemid=83

Buharinomics was General Buhari’s economic program marshaled out to salvage the nation in 1984. He summarized the objective of his economic policy (as articulated in the 1984 budget) as follows: "To arrest the decline in the economy, to put the economy on a proper course of recovery and solvency, and to chart a future course for economic stability and prosperity" (West Africa, May 14, 1984). He had previously done similarly, in March while receiving the visiting Sudanese President, Gaafar Nimeiri. Upon his inquiring of what the new military government had in mind for the nation it then ruled, Buhari said to him: "The priority [of his administration] is for economic recovery, providing employment opportunities, improving people's living conditions, consolidating internal security and ensuring foreign respect" (Africa Now, March 1984). In a nutshell, Buharinomics set out to arrest the decline in the economy and refocus it towards recovery. Buharinomics was to wean the nation off consumerism and profligacy, while channeling it towards frugality and productivity. To accomplish this, the government was to cut down on its expenditure, engage in more efficient restricting and controlling of foreign exchange outflow, undertake the revival of the country's productive capacity (concentration was on agriculture), and broaden government's revenue base.

The first test of Buharinomics was implemented to revive the comatose banking industry and arrest local currency hoarding. In April 1984, the government ordered a change in the color of the Naira. This action was dubbed the “real coup” by unscrupulous business men and politicians who had almost eliminated the need for commercial banking in Nigeria by keeping their moneys under their mattresses or by trafficking them into neighboring West African countries. This currency change, which forced all holders of the naira notes into exchanging them for the new naira notes at commercial banks, infused billions that had remained unaccounted for into the banking industry and eliminated counterfeited currencies, which had inflicted inflationary and other nefarious effects on the economy. This measure had an immediate revitalizing effect in the banking industry and was an unqualified success. Banks that were close to collapsing became vibrant again, to the extent that some of them began to hire hitherto unemployed Nigerians.

To cut down on government expenses, the federal work force was cut by 30% and imports for 1984 pegged at 4 billion pounds (mostly on basic foodstuffs, spare parts, and raw materials for local industries), against 14 billion pounds spent in 1983. To ensure that Nigeria remained respectable on the international business world, Buhari committed to honoring Nigeria’s debt payment schedule irrespective of the limited earning potential of Nigeria. In August 1984, Buhari was on one of his meet-the-people nationwide tours, which he began as soon as the administration got on its feet. Everywhere he went, the people embraced him, coming out en mass and ushering him tumultuous cheers and unreserved applause. In one of his speeches to the people (this one in Owerri), he reiterated Nigeria’s commitment to honoring its debts, the dire economic situation notwithstanding. "The task of this administration is how to persuade Nigerians to understand that for a number of years to come, we would be paying debts, the roads may be long and thorny but we believe that on our shoulders lies the responsibility to save our fatherland from devastation that has resulted from mismanagement" (Newswatch, February 18, 1985).

Buhari could not have been any more correct in his statement above. Assuming Nigeria took no further loans, its breakdown of loan repayments was as follows: 3.9 billion naira ($4.4 billion) in 1985, 3.7 billion naira ($4.19 billion) in 1986, 2.8 billion naira ($3.2 billion) in 1987, until a decrease to 703 million in 1991 (Concord Weekly, May 6, 1985). Nigeria’s precarious financial situation made it impossible for it to finance capital projects and meet up its balance of payment obligations. With oil export pegged at 1.3 million barrels per day by OPEC, borrowing from external sources became necessary. To this effect, Nigeria proposed borrowing 1.795m naira to finance its capital project from the IMF. The patriotism with which General Buhari handled Nigeria’s dealings with the IMF was the highlight and beauty of Buharinomics.

In order to qualify for the loan, IMF gave Nigeria certain conditions which must be met. In 1984 when the naira exchanged for $1.34, the IMF demanded a minimum of 60% devaluation of it. Buhari refused, agreeing only to a "crawling peg"—a mechanism whereby government would realign the currency gradually, forestalling or minimizing economic and social dislocations because of such drastic devaluation of its currency. In addition to the devaluation of the naira, IMF demanded that government took other drastic actions: (a) The government must remove its subsidy on petroleum. (b) It must curtail its expenditure. (c) Government must rationalize its tariff structures. (d) It must put a freeze on its wages. (e) It must put a total end of non-statutory transfers to State governments, (f) Government must at least institute a 30% raise on interest rates—government resisted this because the decline in its revenue earnings and its debt obligations made it almost impossible to raise interest rates without triggering inflation (West Africa, May 14, 1984).

The Nigerian government and veteran economists in Nigeria (like Aluko, Onosade, Okigbo, etc) could not make sense of being asked to devalue its currency when Nigeria’s imports were in dollar and its export (fixed quantity of oil) was also in dollar. The implication of devaluation was that Nigeria would pay more to import lesser quantity of goods than it did prior to any devaluation. It would also export the same amount of oil it exported before any devaluation and derive lesser revenue than it received before any devaluation The impacts of it debt payment would have harsher effect on the citizenry if the naira was devalued. This did not make any economic sense to Buhari; it struck him as an insult on the intelligence of the African. Finance Minister Onaolapo Soleye and Alhaji Abubakar Alhaji who led the Nigerian delegation to the last negotiation in Washington were chewed out by US Federal Reserve Chairman, Paul Volcker, for presenting the Nigerian governments rejection of most of these recommendations. For rejecting the IMF conditions and the loan, the Buhari administration got into the black book of Washington. Already, it had earned the dislike of 10 Downing Street for cutting down Nigeria’s imports from the UK by about 350%. In any case, without the IMF loan, government was still in a bind as to how to finance capital projects and pay for imports, especially spare parts for local industries, food items, etc. At this juncture, the genius and resourcefulness of Buharinomics illuminated to the delight of the African.

First, the administration sent Oil Minister Tam David West to OPEC to seek a raise in the quantity of oil that Nigeria could export. If OPEC agreed, Nigeria would expect to generate extra revenue in the long run from any increase of its oil quota and this would assist tremendously in augmenting the shortfall in the nation’s purse. Professor West came back empty handed—the US and Britain had put pressure on their puppets in OPEC (like Saudi Arabia) to refuse Nigeria’s request.

To counter OPEC’s bluff, the Buhari administration entered into a $2 billion barter trade agreement with four countries. Nigeria daily bartered 200,000 barrels of oil as follows: (a) completely knocked down parts for automobiles from Brazil. (b) Construction equipment from Italy (c) Engineering equipment from France, and (d) Capital goods from Austria. This barter trade took care of the administration’s need to have borrowed money but it intensified the ill will the US and Britain had for Nigeria. By bartering this oil, Nigeria was: (a) solving those needs which the proposed IMF loan was geared toward. Doing so without borrowing or feeling the pains of spending the meager amount generated from its OPEC approved 1.3 billion a day oil export is the stuff an economic wizard is made of. (b) Britain had been cut off as Nigeria’s major supplier of the goods which the countries in the barter agreement sent to Nigeria. (c) The US usurious money lenders were denied the chance to suck Nigeria dry through the IMF loan. (d) American and British oil companies were irate that the oil being bartered would flood the oil market, cutting in on their profits. (d) The oil being bartered was oil that used to be illegally bunkered before Buhari put illegal oil bunkering artist out of business. For once, an African country had put positive economic mechanism in place to salvage its ailing economy without swallowing IMF’s poison pills.

As far as America and Britain were concerned, there was a price to be paid by this Buhari, who thought he was smart enough not to accept subservience to their authority. To begin with, a London newspaper (The Financial Times) published Nigeria’s barter trade agreement with Brazil (which, in truth, was done in secrecy because Buhari treated some aspects of his economic policy as State secret). The British thought it was going to incite OPEC against Nigeria since OPEC as a body did not support oil bartering. Oil Minister Tam David West, in a press conference, said, “If a nation believes it is part of its strategy for national survival to do this [barter trade], why not?” To assure OPEC that Nigeria was not indulging in barter trade in order to pull out of OPEC, he added ”Our strategy is to stay in OPEC and make its presence felt, and work together on programs that will be for the economic interest of all” (Concord Weekly, May 6, 1985). There is more to this barter trade than time will permit one to detail in this piece. For now, it is worth noting that it was the major reason for which Britain and America wanted the Buhari administration overthrown.

you keep re-iterating the none devaluation of the naira during Buhari regime as a 'positive'
if you are a communist I can understand your reasoning but if you understand the 'free market' concept then you MAY understand why devaluation' of national currency is not always a bad thing.

I am not about to give you a lecture in macro economics, but suffice to say if you do a simple honest research in 'devaluation' of currencies you might have a different opinion of this (Greece would love to devalue her currency right now!!)

We see where the devaluation policy have gotten us - Mass impoverishment

Only a fool would argue that Nigerian were better off after devaluation, than during Buhari's rule

[size=18pt]23rd January 1984 - Business America
General Buhari Meets Nigeria's Debt Obligations, Issues New Foreign Exchange Rules[/size]

Nigeria's Federal Military Government, which removed the civilian government of President Shagari in a coup on Dec. 31, has emphasized the importance of Nigeria's meeting its external payments obligations on time. International bankers were relieved when Nigeria paid the first installment of its rescheduled trade debt on time. General Buhari, the head of the supreme Military Council, announced his intention to keep Nigeria in OPEC and to continue discussions with the International Monetary Fund, the World Bank, and commercial lenders.

On Jan. 9 the Central Bank of Nigeria issued new controls on foreign exchange, effective from Jan. 1, 1984. The provisions of most interest to U.S. companies are as follows:

(1) Compulsory Advance Import Deposits

The following rates of compulsory advance deposits will continue in 1984:

Raw materials (except petroleum products) 10 percent

Spare parts 15 percent

Food (except rice) 50 percent

Medicines 50 percent

Building materials 50 percent

Capital goods 50 percent

Books (except single copies), periodicals 50 percent

Motor vehicles and trucks 200 percent

Motor cars 250 percent

Other 250 percent

All importers must pay the applicable rates when registering Form M, the Application for Approval of Foreign Exchange. The advance deposit is now applicable to all imports, whether or not they enjoy credit facilities of more than 180 days.

(2) Commissions

The commission payable to agents or confirming houses which act as intermediaries between importers and exporters has been reduced from a maximum of 4 percent to 2 percent of the f.o.b. value of the consignment.

(3) Technical/Management Service Fees

The existing allowable rate of 20 percent of net profits before taxes that may be remitted in foreign exchange will continue in 1984. However, payment of technical and management fees will not be allowed except in exceptionally deserving cases, such as for manufacturing companies where high technology is required.

(4) Consultancy Fees

The present 20 percent limit of consultancy fees payable in foreign exchange continues, but consultancy fees for feasibility or pre-feasibility studies will not be allowed because such studies may be performed locally.

(5) Travel Allowances

The Basic Travel Allowance will be N100 ($135) per year per person. The foreign exchange allowance for business travel has been suspended until further notice.

(6) Student Remittances

No foreign exchange will be made available to any new student. Students already studying abroad will be able to obtain foreign exchange to complete their studies.

For additional information, contact the Nigeria Country Specialist, Office of African Affairs, Room 3317, U.S. Department of Commerce, Washington, D.C. 20230; phone 202-377-4388.

COPYRIGHT 1984 U.S. Government Printing Office
COPYRIGHT 2004 Gale Group

http://findarticles.com/p/articles/mi_m1052/is_v7/ai_3104580/

^

Thank you Jeeesus !

Jakumo,
What is it now!!!

God bless General Muhammadu Buhari (Rtd), for trying even till this very day, to rescue Nigeria.

The great man even wept for our beloved country.

^

^

Imagine where we would have been today if Buhari had been allowed to fix Nigeria

GenBuhari: [size=20pt]Summary of General Buhari's economic performance -

Buhari reduced Inflation rate from 39% to 3%

Maintained the value of Naira (no devaluation of naira)

Rejected IMF loans and its dictates


(sources : data from Central Bank of Nigeria , Wikipedia, elombah news Written by Nebukadineze Adiele 17 March 2011 )
[/size]

[size=22pt]Buharinomics - General Buhari’s economic program marshaled out to salvage the nation in 1984[/size]

http://www.elombah.com/index.php?option=com_content&view=article&id=5720:is-general-buhari-the-problem-with-nigeria&catid=36:pointblank&Itemid=83

Buharinomics was General Buhari’s economic program marshaled out to salvage the nation in 1984. He summarized the objective of his economic policy (as articulated in the 1984 budget) as follows: "To arrest the decline in the economy, to put the economy on a proper course of recovery and solvency, and to chart a future course for economic stability and prosperity" (West Africa, May 14, 1984). He had previously done similarly, in March while receiving the visiting Sudanese President, Gaafar Nimeiri. Upon his inquiring of what the new military government had in mind for the nation it then ruled, Buhari said to him: "The priority [of his administration] is for economic recovery, providing employment opportunities, improving people's living conditions, consolidating internal security and ensuring foreign respect" (Africa Now, March 1984). In a nutshell, Buharinomics set out to arrest the decline in the economy and refocus it towards recovery. Buharinomics was to wean the nation off consumerism and profligacy, while channeling it towards frugality and productivity. To accomplish this, the government was to cut down on its expenditure, engage in more efficient restricting and controlling of foreign exchange outflow, undertake the revival of the country's productive capacity (concentration was on agriculture), and broaden government's revenue base.

The first test of Buharinomics was implemented to revive the comatose banking industry and arrest local currency hoarding. In April 1984, the government ordered a change in the color of the Naira. This action was dubbed the “real coup” by unscrupulous business men and politicians who had almost eliminated the need for commercial banking in Nigeria by keeping their moneys under their mattresses or by trafficking them into neighboring West African countries. This currency change, which forced all holders of the naira notes into exchanging them for the new naira notes at commercial banks, infused billions that had remained unaccounted for into the banking industry and eliminated counterfeited currencies, which had inflicted inflationary and other nefarious effects on the economy. This measure had an immediate revitalizing effect in the banking industry and was an unqualified success. Banks that were close to collapsing became vibrant again, to the extent that some of them began to hire hitherto unemployed Nigerians.

To cut down on government expenses, the federal work force was cut by 30% and imports for 1984 pegged at 4 billion pounds (mostly on basic foodstuffs, spare parts, and raw materials for local industries), against 14 billion pounds spent in 1983. To ensure that Nigeria remained respectable on the international business world, Buhari committed to honoring Nigeria’s debt payment schedule irrespective of the limited earning potential of Nigeria. In August 1984, Buhari was on one of his meet-the-people nationwide tours, which he began as soon as the administration got on its feet. Everywhere he went, the people embraced him, coming out en mass and ushering him tumultuous cheers and unreserved applause. In one of his speeches to the people (this one in Owerri), he reiterated Nigeria’s commitment to honoring its debts, the dire economic situation notwithstanding. "The task of this administration is how to persuade Nigerians to understand that for a number of years to come, we would be paying debts, the roads may be long and thorny but we believe that on our shoulders lies the responsibility to save our fatherland from devastation that has resulted from mismanagement" (Newswatch, February 18, 1985).

Buhari could not have been any more correct in his statement above. Assuming Nigeria took no further loans, its breakdown of loan repayments was as follows: 3.9 billion naira ($4.4 billion) in 1985, 3.7 billion naira ($4.19 billion) in 1986, 2.8 billion naira ($3.2 billion) in 1987, until a decrease to 703 million in 1991 (Concord Weekly, May 6, 1985). Nigeria’s precarious financial situation made it impossible for it to finance capital projects and meet up its balance of payment obligations. With oil export pegged at 1.3 million barrels per day by OPEC, borrowing from external sources became necessary. To this effect, Nigeria proposed borrowing 1.795m naira to finance its capital project from the IMF. The patriotism with which General Buhari handled Nigeria’s dealings with the IMF was the highlight and beauty of Buharinomics.

In order to qualify for the loan, IMF gave Nigeria certain conditions which must be met. In 1984 when the naira exchanged for $1.34, the IMF demanded a minimum of 60% devaluation of it. Buhari refused, agreeing only to a "crawling peg"—a mechanism whereby government would realign the currency gradually, forestalling or minimizing economic and social dislocations because of such drastic devaluation of its currency. In addition to the devaluation of the naira, IMF demanded that government took other drastic actions: (a) The government must remove its subsidy on petroleum. (b) It must curtail its expenditure. (c) Government must rationalize its tariff structures. (d) It must put a freeze on its wages. (e) It must put a total end of non-statutory transfers to State governments, (f) Government must at least institute a 30% raise on interest rates—government resisted this because the decline in its revenue earnings and its debt obligations made it almost impossible to raise interest rates without triggering inflation (West Africa, May 14, 1984).

The Nigerian government and veteran economists in Nigeria (like Aluko, Onosade, Okigbo, etc) could not make sense of being asked to devalue its currency when Nigeria’s imports were in dollar and its export (fixed quantity of oil) was also in dollar. The implication of devaluation was that Nigeria would pay more to import lesser quantity of goods than it did prior to any devaluation. It would also export the same amount of oil it exported before any devaluation and derive lesser revenue than it received before any devaluation The impacts of it debt payment would have harsher effect on the citizenry if the naira was devalued. This did not make any economic sense to Buhari; it struck him as an insult on the intelligence of the African. Finance Minister Onaolapo Soleye and Alhaji Abubakar Alhaji who led the Nigerian delegation to the last negotiation in Washington were chewed out by US Federal Reserve Chairman, Paul Volcker, for presenting the Nigerian governments rejection of most of these recommendations. For rejecting the IMF conditions and the loan, the Buhari administration got into the black book of Washington. Already, it had earned the dislike of 10 Downing Street for cutting down Nigeria’s imports from the UK by about 350%. In any case, without the IMF loan, government was still in a bind as to how to finance capital projects and pay for imports, especially spare parts for local industries, food items, etc. At this juncture, the genius and resourcefulness of Buharinomics illuminated to the delight of the African.

First, the administration sent Oil Minister Tam David West to OPEC to seek a raise in the quantity of oil that Nigeria could export. If OPEC agreed, Nigeria would expect to generate extra revenue in the long run from any increase of its oil quota and this would assist tremendously in augmenting the shortfall in the nation’s purse. Professor West came back empty handed—the US and Britain had put pressure on their puppets in OPEC (like Saudi Arabia) to refuse Nigeria’s request.

To counter OPEC’s bluff, the Buhari administration entered into a $2 billion barter trade agreement with four countries. Nigeria daily bartered 200,000 barrels of oil as follows: (a) completely knocked down parts for automobiles from Brazil. (b) Construction equipment from Italy (c) Engineering equipment from France, and (d) Capital goods from Austria. This barter trade took care of the administration’s need to have borrowed money but it intensified the ill will the US and Britain had for Nigeria. By bartering this oil, Nigeria was: (a) solving those needs which the proposed IMF loan was geared toward. Doing so without borrowing or feeling the pains of spending the meager amount generated from its OPEC approved 1.3 billion a day oil export is the stuff an economic wizard is made of. (b) Britain had been cut off as Nigeria’s major supplier of the goods which the countries in the barter agreement sent to Nigeria. (c) The US usurious money lenders were denied the chance to suck Nigeria dry through the IMF loan. (d) American and British oil companies were irate that the oil being bartered would flood the oil market, cutting in on their profits. (d) The oil being bartered was oil that used to be illegally bunkered before Buhari put illegal oil bunkering artist out of business. For once, an African country had put positive economic mechanism in place to salvage its ailing economy without swallowing IMF’s poison pills.

As far as America and Britain were concerned, there was a price to be paid by this Buhari, who thought he was smart enough not to accept subservience to their authority. To begin with, a London newspaper (The Financial Times) published Nigeria’s barter trade agreement with Brazil (which, in truth, was done in secrecy because Buhari treated some aspects of his economic policy as State secret). The British thought it was going to incite OPEC against Nigeria since OPEC as a body did not support oil bartering. Oil Minister Tam David West, in a press conference, said, “If a nation believes it is part of its strategy for national survival to do this [barter trade], why not?” To assure OPEC that Nigeria was not indulging in barter trade in order to pull out of OPEC, he added ”Our strategy is to stay in OPEC and make its presence felt, and work together on programs that will be for the economic interest of all” (Concord Weekly, May 6, 1985). There is more to this barter trade than time will permit one to detail in this piece. For now, it is worth noting that it was the major reason for which Britain and America wanted the Buhari administration overthrown.