Barely 24 hours after the House of Representatives moved to repudiate the nation’s estimated $38 billion foreign debts, the Senate yesterday voted N169.9 billion for debt servicing.

The amount is part of the N1.799 trillion 2005 federal budget passed by the Senate also yesterday.

But President Olusegun Obasanjo threw his weight behind Tuesday’s resolution of the House urging him to repudiate the huge external debt obligation pleading that his administration be given more time to exhaust ongoing bilateral and multilateral negotiations aimed at getting a reprieve from the country’s creditors.

The Senate which also reverted to the $30 oil bench mark earlier proposed by government for the 2005 budget, declared yesterday that it was not aware of the House decision to stop appropriating fund to repay or service the nation’s external debts.

The N1.799 trillion budget passed by the Senate is about N1.4 billion less than the N1.846 trillion earlier passed by the House.

A total of N355.7 billion alone was appropriated for both domestic and external debts service while the sum of N608 billion has been set aside for contribution to the development fund for capital expenditure.

Chairman of the Senate Committee on Appropriation and Finance, Senator John Azuta Mbata explained yesterday that the attention of the Senate has not been drawn to the House resolution asking President Obasanjo to stop forthwith repayment or servicing of the nation’s external debts.

According to him, the decision of the Senate to revert to $30 oil benchmark for the 2005 budget was due to additional projected revenue earnings from the sale of some government enterprises which he said will be used to finance this year’s expected budget deficit of about N200 billion.

According to him, the deficit will be financed with the N20 billion from the sale of government properties and another N63.7 billion from the privatisation of NICON this year.

Another N33.5 billion is expected from the sale of NITEL.

The Senate which approved an estimated revenue profile of N1.599 trillion for the year however asked the president to keep faith to the approved N1.799 trillion budget.

Meanwhile, the Senate has raised a thirteen members joint conference committee to harmonise the areas of differences between the Upper House and the House in the 2005 budget.

However, Obasanjo said his administration needed more time to exhaust ongoing bilateral and multilateral avenues being explored to get reprieve from our creditors and development partners.

If after the last effort the Paris and London Clubs of creditors refuse to budge, he promised to report back to the lawmakers and would have no other choice than to allow them pass a law repudiating the debts.

President Obasanjo, who met at the State House with a delegation from the lower chamber of the National Assembly, led by the Speaker, Alhaji Aminu Bello Masari, acknowledged the sincere concern of the federal legislators over the heavy debt burden which he insisted has become an international political and moral issue.

Others at the meeting were Vice President Atiku Abubakar, Deputy Speaker, Hon. Austin Opara, members of the Federal Executive Council (FEC), Secretary to the Government of the Federation (SGF), Chief Ufot Ekaette and Head of Service of the Federation, Alhaji Ahmed Yayale.

The president while stating that he expected members of the international community to “pay attention” to our pleas for debt relief, noted that the issue of debt has reached a height of frustration and they must “take note” of the lawmakers’ concern.

He lauded the House for firing the “first shot” towards halting the excruciating pains inflicted on the nation by the refusal of the creditors to yield ground; just as he declared that “the second shot may even be a law to tackle the matter.

“I do hope that our creditors and our friends in the international community will take note just as you and the government will take note that you have fired the first shot. The second shot may even be a law. If it becomes law, there is no way I can appeal to you because it has to be implemented.

“I would want to appeal to you to say that I take serious note of this motion and I am aware of your concern and I share your frustrations. I know what makes you feel this way. I will want to appeal to you, Mr. Speaker that you allow me to use the best effort of us in government and those men and women of goodwill out there,” he pleaded.

President Obasanjo who declared in Hausa that the matter was babba magana (a big talk), revealed that he had just read a report by the British Commission for Africa where 100 per cent debt relief for low-income countries, as Nigeria was recommended. He urged them to see what could be achieved through this instrument.

Besides, he explained that in international relations the best issue was better handled through bilateral or multilateral approach rather than unilaterally.

While agreeing with the legislators that the debt stock was not an economic issue but a political and moral burden, he wondered why other heavily indebted countries like Iraq, Pakistan, Poland, Egypt and Yugoslavia among others were granted relief.

“What is it that makes them to be entitled to debt relief by almost 100 per cent and does not make Nigeria?”, he queried.

The President also faulted the creditors’ argument that it may not be easy for the country to get debt relief on account of its oil wealth, noting that in reality, what we got from oil was less than 50 cents per Nigerian per day.

He added that this was not even near the so-called $1 a day abject poverty mark line even as he pointed out that almost all the prescription given to him by the creditors, including reform programme, were already in place.

“Those reforms means doing things differently. But what we thought we would get to assuage to reduce the impact is not forthcoming. People say to us you are doing what is right, we can see it but nothing else is happening,” he lamented.

Obasanjo charged the creditors to show “more of compassion and sympathy” while cataloguing Nigeria’s involvement in shouldering the socio-political and economic burdens of many African countries.

Said he: “Nigeria bears the burden of looking after the situation in Togo, Liberia. Before the international community was ready, we were there. Even in Darfur. We are our brothers’ keeper but we are also doing it for the world. We have accepted to bear the brunt of the responsibility but what do we get out of it. Now when everything seems to be right, then we hear things like, how is your budget going?”

Earlier, the Speaker, Alhaji Masari had justified the lawmakers’ position which he predicated on the hard stance of the creditors in granting us reprieve despite President Obasanjo’s relentless efforts and pleas.

He added that the rise in the debt stock from $19 billion in 1985 to $38 billion currently, coupled with the crippling effect on the national economy compelled them to pass the motion.

“The motion generated intense debate as the House critically examined the issue of foreign debt repayment and its crippling effect on the social, economic and political well being of Nigeria and Nigerians.

“The House expressed dismay at the refusal of our external creditors to cancel Nigeria’s debt and provide necessary reliefs. It expressed satisfaction with Mr. President’s appeals and visits to our external creditors in a bid to secure substantial relief and cancellation of Nigeria’s huge debt, albeit without success,” he said.

Lere Ojedokun and Cosmas Ekpunobi, Daily Champion (Lagos), March 10, 2005