Ned Nwoko’s Bold Moves for Economic Change (OPINION)
BY AUSTIN OYIBODE
In the 10th National Assembly, the name Senator Ned Nwoko rings a loud bell. For the first time in the history of Nigeria’s senate, a committee was created due to the ingenuity of a first time opposition senator. That is the Senate Committee on Reparations and Repatriation. And the chairman is a first time opposition party Senator, Prince Ned Munir Nwoko. The reason is not far-fetched. Senator Nwoko has a creative mindset to transform the economy of the nation.
Since he came into Nigeria from the United Kingdom and became a member of the House of Representatives between 1999 and 2003, Senator Nwoko has a mindset to contribute significantly to the development of Nigeria. And one of his biggest accomplishments for Nigeria’s 36 states and the 774 local government areas is the Paris Club refunds. The Paris Club refunds which he and his law firm, Linas International, fought for years, brought a big relief for Nigeria’s 36 states.
As at the time the Nigeria government began disbursing the funds to the states and the local governments, the country was undergoing a chronic recession that brought the nation almost to its knees. So, the efforts of Senator Nwoko leading to the recovery of the billions of dollars came at the time of need for the states and the LGAs.
Senator Nwoko’s achievement in this regard had a transformative impact on the nation’s fiscal health. This monumental accomplishment was the result of years of legal battles, persistent advocacy, and unwavering commitment to the economic well-being of Nigeria.
Background to the Paris Club Debt and Refunds
According to Nigeria’s Debt Management Office (DMO), the Paris Club is an informal group of official money lenders formed in 1956 with
its secretariat in Paris, the capital of France.
It was created to find coordinated and lasting solutions to the payment difficulties
experienced by countries that owed its member countries. It is a voluntary gathering of creditor countries willing to treat in a coordinated
way, the debt due to them by developing countries.
And over the years, Nigeria had accumulated massive external debts, much of which was owed to the Paris Club creditors. This debt became a significant burden on the country’s economy, limiting resources available for development and public services.
By the early 2000s when Chief Olusegun Obasanjo was president, Nigeria’s debt to the Paris Club had become unsustainable, with the country spending billions of dollars annually on debt servicing. The situation was aggravated by irregularities in the management of the loans, including overcharges and misapplied interest rates. These irregularities made it imperative to seek redress and reclaim funds that were wrongly deducted from Nigeria’s accounts.
Senator Nwoko’s Entry into the Case
In an interview posted in 2022, Senator Nwoko gave insight into how the battle started thus: “The money was borrowed in the 70s. My work led to a few things. I met President Obasanjo and told him my findings. He called Ngozi Iweala, former minister of finance, Nuhu Ribadu, then EFCC chairman, Gen. Gusau the NSA and his chief of staff.
“I told him that three states had overpaid the loans they took. I told him to tell Iweala to stop further deductions from the states allocations. He agreed. We had our reports from the various courts. He thereafter set up a committee and we sat for three months.
“The assignment was to help other states beside Adamawa and Taraba that were first discovered. It was to examine whether what we found in these two states, former Gongola state, was same in other states.
“After the three months, we discovered we were right. We submitted our reports to Obasanjo. Within one week, Obasanjo called me and told me that he had instructed the minister of finance to stop further deductions from allocations of these states and to apply it across all states. That was a major breakthrough for the states.
“I told the president that it is not enough. All these states have overpaid. There was a list of all the states and how much foreign debts they had. Some were owing 500m dollars. By the time we finished our work, Abia state had to get a refund of 108m dollars. This was the case across the country. There was no state without a refund.”
The entry of Senator Nwoko, a lawyer by training and a former member of the House of Representatives, was a turning point for Nigeria. Leveraging on his expertise in international law and finance, Senator Nwoko spearheaded efforts to investigate the financial records and identify anomalies in Nigeria’s debt repayments.
Nwoko’s approach was meticulous. He conducted thorough audits of the debt repayment schedules, uncovering discrepancies in the sums deducted by the Paris Club. His findings revealed that Nigeria had been overcharged billions of dollars through inflated interest rates, double charges, and other irregularities. This discovery formed the basis for his legal battle to reclaim the excess.
Legal Battles and Advocacy
Armed with evidence of the irregularities, Senator Nwoko filed legal actions both within Nigeria and internationally to challenge the Paris Club’s deductions. These legal battles were not only time-consuming but also complex, involving negotiations with the foreign creditors and navigating international financial systems. Nwoko’s legal team worked tirelessly to present Nigeria’s case, demanding refunds for the overcharged amounts.
The process required engaging with multiple stakeholders, including Nigerian government officials, Paris Club representatives, and international legal experts. Senator Nwoko’s determination to see the case through was instrumental in overcoming the bureaucratic and diplomatic hurdles that often characterize such disputes. His legal acumen and persistence ensured that Nigeria’s claims were taken seriously by the Paris Club creditors.
Securing the Refunds
After years of negotiations and legal maneuvers, Senator Nwoko achieved a significant breakthrough in 2005 when the Paris Club agreed to refund part of the overcharges. This agreement was part of a larger debt relief package that also included the cancellation of $18 billion of Nigeria’s debt. The refunds, amounting to billions of dollars, provided a much-needed boost to Nigeria’s economy.
Senator Nwoko’s role in securing these refunds cannot be overstated. His efforts ensured that Nigeria not only reduced its debt burden but also reclaimed funds that were rightfully its own. The recovered money was used to support critical government programs, including infrastructure development, education, and healthcare.
The Impact on Nigeria
The Paris Club refunds had a far-reaching impact on Nigeria’s economy. For one, they improved the country’s fiscal stability, allowing the government to redirect resources toward development initiatives. The refunds also enhanced Nigeria’s credibility in the international financial community, demonstrating the country’s resolve to address its debt challenges transparently and effectively.
Moreover, the refunds set a precedent for other African nations dealing with similar issues. Nwoko’s success in challenging the Paris Club’s deductions inspired other countries to scrutinize their debt agreements and demand accountability from creditors. This ripple effect underscored the broader significance of Nwoko’s work beyond Nigeria.
Recognition and Controversies
While Senator Nwoko’s role in achieving the Paris Club refunds earned him widespread recognition, it was not without controversy. Critics questioned the legal fees and commissions paid to Nwoko and his legal team, arguing that they were excessive. However, Nwoko defended the payments, emphasizing the complexity and scale of the work involved in securing the refunds.
Despite these controversies, Senator Nwoko’s contributions remain a milestone in Nigeria’s financial history. His ability to navigate the intricacies of international finance and law underscores his commitment to the nation’s welfare.
Senator Ned Nwoko’s battle to achieve the Paris Club refunds for Nigeria is a testament to his tenacity, legal expertise, and patriotism. By successfully challenging the irregularities in Nigeria’s debt repayments, he not only reclaimed billions of dollars for the country but also set a standard for accountability and transparency in debt management. His efforts have had a lasting impact on Nigeria’s economy and continue to inspire discussions about the role of legal advocacy in addressing financial injustices on a global scale.
AUSTIN OYIBODE
Former Legit.ng South South Correspondent
Publisher, Emerald News
