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Americas / Caribbean 35556 KEESING'S VOLUME XXXIII December 1987 December 1987 KEESING'S VOLUME XXXIII 35557 Newswatch ban The changes reflected a fall in the availability of foreign On Feb. II, less than two weeks after the opening of the first visa office UK's role in Nigeria's structural adjustment programme, bilateral trade f in Lagos, the government had ordered its closure within two days, and southern Africa. The UK Trade and Industry Minister, Mr Kenneth Newswatch, an investigative news magazine, was proscribed for exchange and concern to halt the continuing slide in the value of the naira, which had depreciated 62 per cent against the US dollar following complaints of traffic congestion and security risks. Nigerians Clarke, visited Nigeria for three days in early November 1987; he six months on April 6, 1987, after it had published details of the visiting the UK were required to have entry visas from Feb. I, 1987. This inaugurated a three-day promotional trade fair in Kano and held talks on since the auctions had begun. political bureau's confidential report [see above]. It was an­ followed an announcement by the UK on Sept. I, 1986, that visas were the recently announced medium-term line of credit. nounced the following day that three editors, Mr Ray Ekpu, Mr The first- and second-tier exchange rates [for explanation of necessary for citizens of Ghana, Nigeria, Bangladesh, Ludia and Pakistan Dan Egbese and Mr Yakubu Mohammed, were to be prosecuted system's operation, see page 34855] were merged on July 2, 1987. [see page 34948]. The issue was described on June 6, 1987, by the Minor border incident - Other foreign relations - Visits under the Official Secrets Act, unused for the past two decades. The Finance Minister, Dr S. E. Okongwu, announced that the Permanent Secretary in the Ministry of External Affairs, Alhaji Hamzad Ahmadi, as a major irritant in relations between Nigeria and the UK. However, they were pardoned after issuing a statement apologiz­ first-tier foreign exchange market would cease to operate, while An incursion on May 2, 1987, into Borno state by a few ing to the government. the remaining market would operate largely as a free market for The UK's Export Credits Guarantee Department (ECGD) Cameroonian gendarmes was described as a "minor" incident by The ban on Newswatch was lifted early on Aug. 26, 1987, the second the sale or purchase of foreign currencies based on rates agreed terms on March 25,1987, for the rescheduling of Nigeria's President Babangida on July 1. Following an official visit to anniversary of President Babangida's coming to power. determined by supply and demand. official debt with the UK. The agreement reflected the principle Cameroon on Sept. 20-25 by the Nigerian Chief of Army Staff, In marking the first anniversary ofthe death ofMr Dele Giwa [for which London Club agreement rescheduling commercial debt - IMF that Nigeria would "in general" recognize transfer claims paid out Maj.-Gen. Abacha, the formation of ajoint military border patrol see 34856 A], Newswatch ofOet. 19, 1987, noted that the police were no arrangement - World Bank loan by export credit agencies, apart from cases of obvious fraud. The to check border incursions was announced on Sept. 26. nearer to solving his murder. ECGD announced on July 28,1987, new export cover facilities for Nigeria signed a US$4,200 million debt rescheduling and new Embassies and high commissions in Lagos were informed on Jan. 26, Nigeria, which effectively restored normal trading following loan package with the "London Club" of commercial creditors on 1987, that they had to move to the new administrative capital, Abuja, by 1987 budget· Ending ofeconomic state ofemergency - Annulment of suspension of cover in 1984. Nov. 23, 1987, bringing to an end 18 months of negotiations. The 1989, by which time the federal government was also expected to have national minimum wage amendment - Approval of development plan moved there. The Ministries of Internal Affairs and Trade moved to Abuja agreement, subject to confirmation from the 390 creditor banks, I The four-part package included a £200,000,000 medium-term line of The 1987 budget was outlined by President Babangidaon Jan. I, credit designed to assist small and medium-scale businesses in Nigeria. in March 1987, the Ministry of Industry in June and the Finance Ministry included a new loan facility of US$320,000,000 to be released in 1987. The ECGD announced that it was also prepared to provide medium-term in September. instalments from February 1988. The rescheduling was reported to credit to enable UK contractors to complete essential projects and would It was announced on Oct. 23, 1987, that India had agreed to pay Nigeria Total revenue was estimated at N I 7,800 million (US$1.00= N 2.5954 as cover US$I,550 million of medium-term debt which had matured back UK participation in approved projects in Nigeria's revised five-year US$32,000,000 for the release of an Air India aircraft which Nigeria had at Jan. 7, 1987) which was understood to be based on an expected average in 1986-87 and US$2,350 million in the form of letters of credit. price ofabout US$13 per barrel for Nigeria's oil, which accounted for over development plan. It would also support short-term business secured by confiscated two months previously when heroin was found on board. letters of credit. The claims for uninsured trade arrears remained 90 per cent of the country's export earnings. The balance-of-payments Dr Okongwu said that the agreement was a major step forward King Juan Carlos of Spain visited Nigeria on the first stop of an deficit on the current account was estimated at N 760 million, compared in the government's efforts to revive the economy, which had been unresolved. Promissory notes worth about US$3,000 million were issued by Nigeria, but traders were claiming a further US$2,000 million-3,000 African tour in December 1986. President Babangida paid a with a surplus of N 1,100 million in 1985. The President said that Nigeria severely hit by the slump in oil prices since the early 1980s [for four-day visit to Kenya on Oct. 21-24, 1987, when he had talks would continue to limit repayments ofexternal debt to 30 per cent ofexport million. The Central Bank of Nigeria announced on Sept. 22 that it which see 34702 A]. with President Moi.-(New York Times - International Herald earnings, a measure which had been introduced in the 1986 budget [see intended to repudiate some US$2,000 million of disputed trade debts page 34855]. Recurrent expenditure was projected at N 10,700 million, out The IMF formally approved on Jan. 30, 1987, a standby , whose validity had not been accepted by the government. Tribune - Financial Times - Guardian - BBC Summary of World of which the Defence portfolio was allocated the largest share, arrangement of 650 million special drawing rights (SDR A UK Minister of State for Foreign and Commonwealth Affairs, Mrs Broadcasts- West Africa - African Concord - Index on Censorship­ N 717,600,000 (a reduction of N 35,000,000 compared with 1986), I =US$1.2651 as at Feb. 4,1987), which had been announced in Lynda Chalker, accompanied by 12 senior businessmen, visited Nigeria on Washington Post - African Economic Digest - The Guardian, Education N 193,300,000, Finance N 364,300,000, Information and late September 1986 [see page 34856]. The World Bank had Jan. 4-9, 1987. Talks with President Babangida on Jan. 7 centred on the Lagos - Nigerian Newsletter) (Previous report 34852 A) Culture almost N 111,000,000 and Health N 166,800,000; the police were pledged a yearly loan for an unspecified period of US$I,OOO to receive N 370,600,000. million (N 3,500 million) to finance the structural adjustment AMERICAS CARIBBEAN This cautious budget was designed to reinforce an economic programme, according to an announcement on July 16 by the I recovery programme drawn up with the support of the Interna­ World Bank President, Mr Barber Conable. A. ARGENTINA - Congressional and guberna­ Congressional, gubernatorial and municipal elections tional Monetary Fund (IMF) and the World Bank. President Nigeria Airways was suspended from the International Air torial elections - Cabinet appoiptments - "Dirty war" In the two-yearly elections for half of the 254 seats in the Babangida stressed the theme of austerity, saying that measures Transport Association (IATA) for non-payment of debt early in trials - Army rebellions - Foreign relations - Economic Chamber of Deputies, the lower house of the Congress, held on introduced over the past 12 months, which included an effective 60 1987, and could no longer issue tickets for points beyond the cities developments Sept. 6, 1987, the ruling Radical Civic Union party (Union Civica per cent devaluation of the naira, were to encourage self-reliance. served directly by the airline. The airline settled its debts of Radical-UCR) polled 37.9 per cent of the votes cast, losing 13 of President Babangida also announced on Jan. I the end of the US$29,300,000 on March 10, but was again expelled from lATA Mid-term congressional elections (Sept. 6, 1987). its 130 seats in the Chamber of Deputies and thus its narrow economic state of emergency introduced on Oct. I, 1985 [see page in October 1987 for failing to meet arrears of US$I 6,000,000 by a Cabinet changes (Sept. 16, 1987). overall majority; the Justicialist Nationalist Movement (Movi­ 33959], as result of which salaries had been cut by up to 20 per cent.
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