Abdulkadir Ahmed
Encyclopedia
Abdulkadir Ahmed was a Nigeria
n businessman and civil servant who was Governor of the Central Bank of Nigeria
between 1982 and 1993.
, Bauchi State
. He attended Barewa College
, Zaria in 1955.
He joined the New Nigerian Development Company in January, 1960.
Ahmed studied as the University of Ife in 1961.
He graduated from South West London College in 1972.
Ahmed became Commissioner of Finance for Bauchi state (March 1976 - June 1977).
He was appointed a Deputy Governor with the Central Bank of Nigeria in 1977.
Ahmed was a fellow of the Institute of Chartered and Certified Accountants and the Institute of Chartered Accountants of Nigeria
.
He held office for over 11 years during democratic government of Shehu Shagari
and interim government of Ernest Shonekan
, and the military regimes of Generals Muhammadu Buhari
and Ibrahim Babangida
.
He was the first chairman of the board of the Nigeria Deposit Insurance Corporation
when it was established on 15 June 1988.
During his tenure, the Shagari regime awarded contracts for construction of the Kafin Zaki Dam
in Bauchi State. Both Ahmed and water resources minister Abubakar Hashidu were natives of the state. The successor government of Military ruler General Sani Abacha
cancelled the project and appointed a judicial committee of inquiry.
Abacha also set up a panel of inquiry into CBN activities under his predecessors.
The panel reviewed handling of Dedicated and other Special Accounts, set up to manage windfall revenues from sale of crude oil.
The amounts involved between September 1988 and 30 June 1994 totaled $12.4 billion. The panel was critical of the way that this money was spent on non-essential projects rather than used to further reduce debt.
In 1988, Governor Ahmed achieved the first debt reduction transaction in the international markets by restructuring the trade arrears of Nigeria into CBN Promissory Notes. The restructuring was done on a voluntary basis, with over 2/3 of the noteholders agreeing to the restructuring at a bondholders meeting at Wembley Conference Centre in London. Governor Ahmed convinced noteholders to accept the debt reduction deal by allowing creditors to set strict terms of default for the notes. The Governor feared that subsequent Nigerian administrations would attempt to renege on the note payments, so he permitted creditors to set very harsh terms of default for the notes. As a result, the Promissory Notes, which totalled over USD 5 billion, were paid in full on January 2010, and Nigeria's credit rating has greatly improved as a result. This transaction, and Nigeria's performance on the CBN Notes, allowed Nigeria to restructure another $5 billion of bank debt into Brady Bonds in 1992. Brady Bonds also had an element of debt reduction, which greatly lowered Nigeria foreign exchange cost.
Governor Ahmed then initiated the first comprehensive sovereign debt buyback in the international markets, which further reduced Nigeria's foreign exchange burden, between 1988 and 1993, through a overseas subsidiary company named Greenland Holdings. After allegations of impropriety in the deals, a Senate investigation committee in 2000 exonerated the governor and stated that the deals had been beneficial to the country, reducing foreign debt by $5 billion at an average cost to Nigeria of 32% of the face value of the debt purchased.
. On the return journey, BA downgraded the former Central Bank governor's ticket to economy class on the basis that he had paid in naira rather than a "hard" currency.
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
n businessman and civil servant who was Governor of the Central Bank of Nigeria
Central Bank of Nigeria
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...
between 1982 and 1993.
Background
Ahmed was born on the 31 October 1940 in Jama'areJama'are
Jama'are is a Local Government Area of Bauchi State, Nigeria. Its headquarters are in the town of Jama'are.It has an area of 493 km² and a population of 117,883 at the 2006 census.The postal code of the area is 751....
, Bauchi State
Bauchi State
Bauchi State is a State in northern Nigeria. Its capital is the city of Bauchi. The state was formed in 1976 when the former North-Eastern State was broken up...
. He attended Barewa College
Barewa College
Barewa College is a college in Zaria, Kaduna State, northern Nigeria. Founded in 1922 by British Governor General Hugh Clifford, it was originally known as "Katsina College." It switched its name to "Kaduna College" in 1938 and then "Government College, Zaria" in 1949 before settling on "Barewa...
, Zaria in 1955.
He joined the New Nigerian Development Company in January, 1960.
Ahmed studied as the University of Ife in 1961.
He graduated from South West London College in 1972.
Ahmed became Commissioner of Finance for Bauchi state (March 1976 - June 1977).
He was appointed a Deputy Governor with the Central Bank of Nigeria in 1977.
Ahmed was a fellow of the Institute of Chartered and Certified Accountants and the Institute of Chartered Accountants of Nigeria
Institute of Chartered Accountants of Nigeria
The Institute of Chartered Accountants of Nigeria is a professional accountancy body in Nigeria.It is one of the two professional accountancy associations with regulatory authority in Nigeria, the other being the Association of National Accountants of Nigeria .The relationship between the two...
.
Governor of the Central Bank
Ahmed was appointed the Governor of the Bank on 27 June, 1982 and retired on 30 September, 1993.He held office for over 11 years during democratic government of Shehu Shagari
Shehu Shagari
Shehu Usman Aliyu Shagari, Turakin Sakkwato served as the President of Nigeria's Second Republic , after the handover of power by General Olusegun Obasanjo's military government....
and interim government of Ernest Shonekan
Ernest Shonekan
Ernest Adegunle Oladeinde Shonekan is a British trained Nigerian lawyer, industrialist, politician and traditional chieftain. He was appointed as interim president of Nigeria by General Ibrahim Babangida on 26 August 1993. Babangida resigned under pressure to cede control to a democratic government...
, and the military regimes of Generals Muhammadu Buhari
Muhammadu Buhari
Muhammadu Buhari was a military ruler of Nigeria and an unsuccessful candidate for president in the 2003, 2007 and 2011 presidential elections...
and Ibrahim Babangida
Ibrahim Babangida
General Ibrahim Badamasi Babangida CFR DSS mni , popularly known as IBB, was a Nigerian Army officer and military ruler of Nigeria...
.
He was the first chairman of the board of the Nigeria Deposit Insurance Corporation
Nigeria Deposit Insurance Corporation
The Nigeria Deposit Insurance Corporation was established on 15 June 1988 to strengthen the safety net for the newly liberalized banking sector, following the recommendation of former Central Bank of Nigeria governor Ola Vincent...
when it was established on 15 June 1988.
During his tenure, the Shagari regime awarded contracts for construction of the Kafin Zaki Dam
Kafin Zaki Dam
The Kafin Zaki Dam is a controversial project to build a reservoir on the Jama'are River in Bauchi State in the Northeast of Nigeria.-Proposed dam and reservoir:...
in Bauchi State. Both Ahmed and water resources minister Abubakar Hashidu were natives of the state. The successor government of Military ruler General Sani Abacha
Sani Abacha
General Sani Abacha was a Nigerian military leader and politician. A Kanuri from Borno by tribe, he was born and brought up in Kano, Nigeria. He was the de facto President of Nigeria from 1993 to 1998....
cancelled the project and appointed a judicial committee of inquiry.
Abacha also set up a panel of inquiry into CBN activities under his predecessors.
The panel reviewed handling of Dedicated and other Special Accounts, set up to manage windfall revenues from sale of crude oil.
The amounts involved between September 1988 and 30 June 1994 totaled $12.4 billion. The panel was critical of the way that this money was spent on non-essential projects rather than used to further reduce debt.
In 1988, Governor Ahmed achieved the first debt reduction transaction in the international markets by restructuring the trade arrears of Nigeria into CBN Promissory Notes. The restructuring was done on a voluntary basis, with over 2/3 of the noteholders agreeing to the restructuring at a bondholders meeting at Wembley Conference Centre in London. Governor Ahmed convinced noteholders to accept the debt reduction deal by allowing creditors to set strict terms of default for the notes. The Governor feared that subsequent Nigerian administrations would attempt to renege on the note payments, so he permitted creditors to set very harsh terms of default for the notes. As a result, the Promissory Notes, which totalled over USD 5 billion, were paid in full on January 2010, and Nigeria's credit rating has greatly improved as a result. This transaction, and Nigeria's performance on the CBN Notes, allowed Nigeria to restructure another $5 billion of bank debt into Brady Bonds in 1992. Brady Bonds also had an element of debt reduction, which greatly lowered Nigeria foreign exchange cost.
Governor Ahmed then initiated the first comprehensive sovereign debt buyback in the international markets, which further reduced Nigeria's foreign exchange burden, between 1988 and 1993, through a overseas subsidiary company named Greenland Holdings. After allegations of impropriety in the deals, a Senate investigation committee in 2000 exonerated the governor and stated that the deals had been beneficial to the country, reducing foreign debt by $5 billion at an average cost to Nigeria of 32% of the face value of the debt purchased.
Later career
In the early 1990s, Ahmed, bought a first class return ticket for a trip to London with members of his family from British AirwaysBritish Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
. On the return journey, BA downgraded the former Central Bank governor's ticket to economy class on the basis that he had paid in naira rather than a "hard" currency.