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

Yeye country with senseless leaders

We haven't even taken care of our own, we want to start taking care of other people, Naija, when will you change.

May be there is a benefit which I do not know but based on what I have just read and considering the fact that Nigeria is trying to borrow to sort their budget deficit, I think this is shear madness on the side of Yar'Adua!

nigeria is a joke

Good idea but needs to be well planned.

The loan should be given but with conditions.

In that way, Nigerians will benefit and Sao Tome too.

why not.

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.

Nigeria= misplaced priorities
$10m portable water in my community.
what a waste!

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.

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.

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?

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

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

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).

adconline:

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.

Are you implying that this is will be a wise move in the long run? It doesn't seem to make sense especially as Sao Tome seems to be faring better than Nigeria. If any government needs help with the socio-economic difficulties of its country it should be the Nigerian government!

To read that this "soft loan" will be interest-free and will be repaid in four to six years even makes it more unbelievable. I will be very shocked if this bid is approved.  

Answer: To protect business dis awa hard time.

Una know sey awa Maradona General (IBB) get mega oil business for Sao Tome------follow the money

An Housa man can never stop thinking like a cow!

Una know sey awa Maradona General (IBB) get mega oil business for Sao Tome-

I see!

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

Perhaps


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

@Jumobi

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

This particular loan is interest-free.

This particular loan is interest-free.

Can u imagine that.

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.

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

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.

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

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

The Article said that loan is may be "Interest free." unless they have hidden gain from lending the money, if not, this gesture should not be considered responsible. I mean we are talking about nigeria where if you don't deposite money at the hospital during emergency, they allow you to die!!! this so dumb! better yourself first Nigeria,

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.

LIGHT NO DEY OUR AREA FOR LAGOS!!!  wan go borrow some ppl money!!!  4kup

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