Nigeria’s economic boss removed ABUJA

Nigerian President Olusegun Obasanjo has removed Ngozi Okonjo-Iweala, who as finance minister cleaned up public finances, from the helm of his economic team, a source at the presidency said yesterday.

Former World Bank executive Okonjo-Iweala, who is credited with bringing macro-economic stability to Africa’s top oil producer and most populous nation, was unexpectedly reassigned from finance to foreign affairs in June with no reason given. She will be replaced as head of the economic management team by her successor as finance minister, Nenadi Usman, said the presidency source, who did not know the reason for the change.Two Nigerian newspapers, This Day and the Guardian, quoted from a letter from Obasanjo that said: “Having allowed sufficient time for institutional stabilisation she (Okonjo-Iweala) has been removed as leader of the Economic Team with Finance Minister Nenadi Usman as leader.”Okonjo-Iweala last year negotiated a landmark deal in which the Paris Club of rich sovereign creditors wrote off US$18 billion of debt – Africa’s largest debt cancellation.Nigeria then used windfall earnings from oil exports to pay off another US$12 billion in debts and arrears.She was in London, negotiating a new debt relief deal, when news of her removal emerged.”We are still here with her, and she’s here in her official capacity as head of the economic team.I don’t think she is aware of the development,” said a member of her delegation, who did not wish to be named, by telephone from London.Some analysts have voiced fears that Okonjo-Iweala’s removal from the finance ministry could signal a slackening of the fiscal discipline she introduced after decades of profligacy and mismanagement, but others are hopeful her policies will live on. Nampa-ReutersShe will be replaced as head of the economic management team by her successor as finance minister, Nenadi Usman, said the presidency source, who did not know the reason for the change.Two Nigerian newspapers, This Day and the Guardian, quoted from a letter from Obasanjo that said: “Having allowed sufficient time for institutional stabilisation she (Okonjo-Iweala) has been removed as leader of the Economic Team with Finance Minister Nenadi Usman as leader.”Okonjo-Iweala last year negotiated a landmark deal in which the Paris Club of rich sovereign creditors wrote off US$18 billion of debt – Africa’s largest debt cancellation.Nigeria then used windfall earnings from oil exports to pay off another US$12 billion in debts and arrears.She was in London, negotiating a new debt relief deal, when news of her removal emerged.”We are still here with her, and she’s here in her official capacity as head of the economic team.I don’t think she is aware of the development,” said a member of her delegation, who did not wish to be named, by telephone from London.Some analysts have voiced fears that Okonjo-Iweala’s removal from the finance ministry could signal a slackening of the fiscal discipline she introduced after decades of profligacy and mismanagement, but others are hopeful her policies will live on. Nampa-Reuters