Olusegun Aganga, Goldman Sachs outfit, and the Nigerian economy (1)c

By Sampson Iroabuchi Onwuka
Olusegun Aganga in his opening statement after confirmation sounded off the issue of Power Supply in Nigeria as a top priority and last week the Nigerian president Goodluck Jonathan promised Niger Delta a total solution to its power supply. It is clear that we are witnessing a classic motif of Goldman Sachs in Public financing. Such motif of Goldman Sachs in Aganga statements are comments about the general assumption of debt, debt in the guise of pay package and for balancing the budget. All, and much of these traits add up to long term financial of these banks and form part of the portfolio strategy of Investment banks dealing with relatively weaker economies. In a sense, Goldman Sachs’ financial product for nations include debt structure and need to bail out failing institutions, for all these points to the essence of International Monetary Fund which is rubric of Aganga commentary.



But the IMF is not a voluntary organization, it is an assortment of Banks and one Bank. In many ways, the new International responsibilities of the ‘New Nigerian’ in office compel the ‘See’ of International financial society such as IMF on Nigerian market. This oversight is uncalled for and unlikely to pay, for how could Nigerian economy compel itself to suffer the rates of International markets. This can only mean one thing and one thing only that International standards will now apply to the Nigerian market. But this is not good at all, not that foreign ‘see’ is not necessarily a bad interference but IMF and World Bank are just a bunch of International financial organization owned by Investment Banks. These banks include the likes of Gold Sachs. The Investment Bank in question bring with it a ‘Negative externality’ that usually impact on a third world performance in Real Time money market. Such bad performance is almost a guarantee for profit for these Banks doing business in Third world economies. The profit is at best a symptom of weak domestic third markets, a condition that will become weaker as Investment Banks such as Goldman Sachs offer their debt structure. In that guise much of the current affiliation with IMF and World Bank with Nigeria is not that useful for they operate with as much agenda as the Investment banks of US before the 2008 collapse. These foreign donors apply the same rule of profiteering and commercial engineering bereft of the defunct US Investment Banks and only ‘suckers’ like our good Nigerian are likely to believe that IMF and World Banks are International helpmate for their prospective economic venture.