Buhari's threat to end trade with UK
Nigeria is seeking a two to three billion dollar IMF loan to help its economic recovery and has approached various creditors with a plan to spread repayment of part of its estimated 17.5 billion dollar external debt over a six-year period.
But Britain's Export Credit Guarantee Department (ECGD), leading other Nigerian major European trading partners, has rejected the proposal, saying that Nigeria must first successfully conclude its negotiations with the IMF.
The IMF has been demanding that Nigeria liberalise its foreign trade, end subsidies on petroleum products and devalue its currency by about 60% as a pre-condition to the loan. Lagos is "hesitant" about the IMF conditions because of feared socio-economic consequences. Nigeria is still negotiating with Britain on the rescheduling of its short- term debts of about five billion dollars. "I doubt if Britain will sabotage us, because we are owing Britain about 700 million pounds, and Britain certainly wants its money", Gen. Buhari added.
He then went on to warn that if the two countries failed to reach agreement, Nigeria must turn to other trading partners, "which means we will stop trading with Britain".
On general relations between Nigeria and Britain, which have been at a low ebb since the attempted kidnapping in London of former Nigerian Transport Minister, Umaru Dikko, General Buhari said Lagos still maintained ties at High Commission (ambassadorial) level with London. He said Nigeria was closely watching the trial in London of one Nigerian and three Israelis, arrested in connection with the kidnap attempt, which Lagos has denied being involved in.
Turning to West Africa, Gen.Buhari called for a fomalised trade agreement within the ECOWAS sub-region. He said that the Government was not happy with the ease with which essential goods were being transported out of the country freely. General Buhari observed that Nigeria had a lot of problems to solve, adding that the Federal Government would not be pre- pared to take extra African responsibility. He remarked that what the nation needed to learn most was peace and stability for the nation's develop- ment within the next 15 years.
On border crises with the Cameroon, General Buhari said that talks were in progress between the two countries towards resolving the issue.
Referring to the recent visit to Israel by the two suspended traditional rulers, General Buhari said that the FMG had not banned Nigerians from travelling to Israel. He stated that traditional rulers were public officers and the visit of the two suspended rulers to Israel gave the impression as if they were representing the Government. The Head of State said their action had embarrassed the Government since it had earlier made a policy statement not to renew ties with Israel.
