Nigeria

In reference to “The Case of Nigeria’s Vanishing Middle Class,” by Scott Kraft, World Report, Jan. 11: I deny that the middle class in Nigeria is vanishing. Indeed, one of Nigeria’s assets is still its enterprising middle class. Yes, it was the product of the oil boom of the 1970s; but it is surviving and still vibrant--thanks to the economic liberalization introduced in 1987, leading to increased private-sector participation in the economy. The government is progressively retrenching from the ownership of a number of enterprises by selling them to local and foreign investors (privatization) or by allowing them to operate as commercial enterprises.

The problems of corruption, income gap and inflation are now worldwide and no longer the monopoly of any particular country or region. The specific allegations leveled against Nigerian officeholders are based on speculations and rumors without any concrete evidence. For instance, the money given to military officers was loans to enable them to buy cars for the proper performance for their duties.

The government of Gen. Sani Abacha has made a war against corruption and other forms of indiscipline one of its major preoccupations. In this year’s budget speech, Abacha has announced measures to deal with inflation and other economic distortions. The interest rates which, in some cases, reached as high as 60% are being reduced to 12%-15% to enable entrepreneurs to obtain credit on easier terms and increase economic activities, employment opportunities and productivity.

Essential to the success of these measures is foreign investment. Nigeria has the biggest market in Africa with 88.5 million people, abundant agricultural and mineral resources, cheap and skilled manpower and well-developed infrastructure. The government grants tax concessions to investors.

To reduce the income gap and cushion the effects of inflation, credit allocations to rural and urban sectors are now at par--50% each. Other relief measures include improved transportation, education, health services and water supply. These corrective measures, which are subject to review from time to time, are designed to resolve the immediate economic and social problems of Nigeria mentioned in Kraft’s article.

ZUBAIR MAHMUD KAZAURE

Ambassador of Nigeria

Washington