RisenPhoenix1:


I know it's a popular pastime in Nigeria, but you really should not make such accusations of 'stealing' based on mere street rumours. The purchasing power of people has nothing to do with the debt, and more to do with the foreign exchange policies; which; though they seem harsh on the common people, do bestow an advantage in the long run by making internal production more attractive. Manufacturing has been on the uptick this last period, as imports are getting more expensive and less attractive. Even cross border sales of everyday goods are improving in Nigeria's favour. All that is left to do is encourage more investment in the private sector, and that needs infrastructure and security; hence the borrowing. I don't think that the loan policy has been too bad. It is still somewhat on point, at least on paper; though I've not followed up on any research to see how it's actually been used.

Personally, I don't have so much interest in macroeconomic trends unless they affect my personal business; which Nigeria's GDP does not, but I believe that the NBS uses the production method to compute Nigeria's GDP; i.e. the estimated net sales value of its goods and services. And even if the assessment is off, it wouldn't be by more than a few percentage points. The figures do seem to be acceptable even to advanced financial institutions like the IMF and the WB, so I never thought of questioning them.

Okay, your points are very well noted

And they won't stop borrowing o

Giant of Africa indeed!

Nigeria is owing everybody even kuwait

ZOO COUNTRY. always borrowing money for looting.

RisenPhoenix1:


In that case, the complaints should be about the mismanagement of the moneys received and not about the debt profile itself. Then one can go into a discussion as to whether the debt was effectively utilised or not. Nigeria does not seem to be doing too badly compared to the rest of the world. Its estimated GDP growth is right around global average, despite facing an epidemic, a crash in the price of its major export, and a running insurgency.

This and your first comment hit the nail on the head. By 2015, due mainly to crash in oil prices, we were earning far less in revenue. As a reaction to that, you could do one of 2 things. Either you cut capital and recurrent expenditure to fit your revenue or you borrow to try to stimulate productivity which if spent well will in turn stimulate growth ultimately leading to more jobs, more private sector investment, job creation and more tax revenue.

Both options are not easy. The first will lead to loss of jobs across board and lack of investment in infrastructure to try to kick-start the economy. The good part of this option though is that it forces us to cut waste and run a lean govt. Gains will be good but not at a scale to revamp our economy.

Second option makes you do something rather than sitting on our behinds. If funds are judiciously used and targeted at infrastructure that can pay back the loans, then it is usually the better option. Of course, effort at cutting waste should be continuously made. The developed economies do it all the time. Their borrowings during this pandemic are multiples of what they had before. These go to cushion impact of pandemic on citizens and try to start up the economy.

The key thing as you said is to judiciously use these debts on capital programs that generate healthy revenue-generating assets.

Chinese component of our external borrowings is less than 15% of total so don't see why that discussion on Chinese takeover of our economy is always an issue.

Latvin:


This and your first comment hit the nail on the head. By 2015, due mainly to crash in oil prices, we were earning far less in revenue. As a reaction to that, you could do one of 2 things. Either you cut capital and recurrent expenditure to fit your revenue or you borrow to try to stimulate productivity which if spent well will in turn stimulate growth ultimately leading to more jobs, more private sector investment, job creation and more tax revenue.

Both options are not easy. The first will lead to loss of jobs across board and lack of investment in infrastructure to try to kick-start the economy. The good part of this option though is that it forces us to cut waste and run a lean govt. Gains will be good but not at a scale to revamp our economy.

Second option makes you do something rather than sitting on our behinds. If funds are judiciously used and targeted at infrastructure that can pay back the loans, then it is usually the better option. Of course, effort at cutting waste should be continuously made. The developed economies do it all the time. Their borrowings during this pandemic are multiples of what they had before. These go to cushion impact of pandemic on citizens and try to start up the economy.

The key thing as you said is to judiciously use these debts on capital programs that generate healthy revenue-generating assets.

Chinese component of our external borrowings is less than 15% of total so don't see why that discussion on Chinese takeover of our economy is always an issue.

You put it better than I did. I just wish people would learn to understand how the economy works before commenting on threads like this. It is easy for those who are not expected to profer solutions, to criticise every action taken to find one, and when an illiterate (at least from an economic perspective) does it, it's beyond irritating.

I suspect that criticism in Nigeria always has to do more with tribal politics than with sensible economics. Perhaps it's my apolitical mindset that makes me fail to understand why many people don't see the obvious merits in some of these policies.

Funny enough the loan is their personal pocket.

LZAA:
Sai mama
Sai debt
Cc imhotep greenback Afonjaconehead sarrki simplyleo

Sai debt slavery

Cc bamite

TheBeat:
Buhari. Yet nothing to show for it.

No, try to be patriotic! There's Buhari train been celebrated by zombies on NL here now!

na wa oooo

Thanks for the update..we dey expect more that.

imhotep:

Sai debt slavery

Cc bamite

Nigeria is now placed on eBay, jiji, Kinga, jumia and Alibaba.com as FOR SALE. We are in deep shit

stonemasonn:
Less than 13billion dollars that's too small nah.

Exactly!
That's why we need to borrow to make up the funding of the budget.

RisenPhoenix1:


Not such a negative statistic. That would put Nigeria's debt to GDP ratio at about 30-35%? Nigeria is joining the developed countries from that perspective. After all, countries like the UK and France have debt to GDP ratios approaching 100% if not more. And even the mighty US and China have debt to GDP ratios much higher than Nigeria's. I personally don't see what the cause for alarm is, but then again, perhaps I need a couple of beers before I can see the issue from an emotional beer parlor perspective.

It is very bad!
The loans are not being put to good use here in Nigeria. The the Western hemisphere is is being put to good use.
Nigeria's debt are too expensive. Much of the money pays for foreign goods or services.

Nigeria is in for a mega mess when Buhari is through.

This is a game that was planned and well executed by the northern elders.

This evil became successful because PMB picked Zainab Ahmed as minister of finance and her duty is to keep on looting in the name of borrowing and the northern elders will be cashing through bandit and bokoharam.

PMB borrowed over 20tr within 5yrs, what has he achieved with the money? Nothing to compare to the huge some of it. There's a notice by the same minister of finance that this debt will hit 38tr in some months to come.

Two project that he can boost of are yet to be completed and he can never complete them, the projects are 2nd Niger bridge and Lagos to kano standard gauge rail line, so what will this huge borrowing be justified with? Nothing but an avenue for the APC government to loot Nigeria to extinction.

My heart bleeds for this country, imagine the senate president Ahmed Lawal said yesterday that Nigerians should not worry about their excessive borrowing and I was not suprise because that was one of the reason why he was installed into the position for the easy passage and the implementation of the evil agenda of the APC government.

There's no problem we're watching, soon we're going to show them where they belong.

Say no to bad governance!
Say no to looting!
Say no to arrangee government!

RisenPhoenix1:


You put it better than I did. I just wish people would learn to understand how the economy works before commenting on threads like this. It is easy for those who are not expected to profer solutions, to criticise every action taken to find one, and when an illiterate (at least from an economic perspective) does it, it's beyond irritating.

I suspect that criticism in Nigeria always has to do more with tribal politics than with sensible economics. Perhaps it's my apolitical mindset that makes me fail to understand why many people don't see the obvious merits in some of these policies.

Thanks for your insights. I try not to dabble into politics but sometimes you are drawn into it. I'm always amazed when the tribal card is played and the protagonists who claim to be more enlightened are at best ignorant.

A govt earns one third in the past 5 years of what was earned in 7 years up till 2014. Oil revenue is depressed and will continue to be since the world has lost interest in fossil fuels. The effect of not diversifying our economy in years of plenty is what we are feeling today. We simply don't have enough dollar revenue to keep naira stable hence the need for currency devaluation and attendant short term hardship we are experiencing.

Part of the conditions tied to borrowed funds is to remove subsidy on fuel and power. Painful as that is, it is necessary and the right thing to do. I know it is difficult to look beyond the short term because of the suffering on millions of our people but govt should communicate hope more and ensure that the Social Investment Programs reach the most vulnerable to cushion short term impacts.

For the long term, budget is the tool to keep us focused year on year. I'm convinced the future is bright and believe that this govt is a better manager of scarce resources.

PHijo:


It is very bad!
The loans are not being put to good use here in Nigeria. The the Western hemisphere is is being put to good use.
Nigeria's debt are too expensive. Much of the money pays for foreign goods or services.

Nigeria is in for a mega mess when Buhari is through.

Taking loans and not putting them to good use are two different issues entirely. You will of course, have to define what "good use" means.

Too expensive? In what way?

Any statistics on how much is used for foreign goods or services? Apart from specific, much needed infrastructure development; which the low technological level in Nigeria demands be sourced externally; I don't think that foreign goods or services form a large part of the expenditure from the funds received. Of course, of there are any credible companies in Nigeria that can build standard rail lines, equip airports or revamp refineries and electrical grids, I'm sure they were never blocked from tendering applications for projects. Only I doubt if there are any that could carry out any of these projects without themselves bringing in external equipment and experts; which means, just putting an unnecessary middle man in the process.

Latvin:


Thanks for your insights. I try not to dabble into politics but sometimes you are drawn into it. I'm always amazed when the tribal card is played and the protagonists who claim to be more enlightened are at best ignorant.

A govt earns one third in the past 5 years of what was earned in 7 years up till 2014. Oil revenue is depressed and will continue to be since the world has lost interest in fossil fuels. The effect of not diversifying our economy in years of plenty is what we are feeling today. We simply don't have enough dollar revenue to keep naira stable hence the need for currency devaluation and attendant short term hardship we are experiencing.

Part of the conditions tied to borrowed funds is to remove subsidy on fuel and power. Painful as that is, it is necessary and the right thing to do. I know it is difficult to look beyond the short term because of the suffering on millions of our people but govt should communicate hope more and ensure that the Social Investment Programs reach the most vulnerable to cushion short term impacts.

For the long term, budget is the tool to keep us focused year on year. I'm convinced the future is bright and believe that this govt is a better manager of scarce resources.

I concur. Unfortunately, everyone wants to eat omelettes, but without breaking the eggs.

Slurity:
Who did Jonathan sold Nigeria to considering he borrowed money too despite the fat money he make from our oil?

@ 2015 President Jonathan era, Nigeria debt profile at= N12.12 trillion with reserve us$48 billion. Mr intergrity the President Buhari leap to N32.2 trillion, nothing on ground to show. @2015 bag of rice @ N9k, against N36k - cement bag ,@N2000, against N4500- Pms @N87/lt, against N165/lt. Brother the difference is clear - DO THE MATHS

stonemasonn:
Abuja-Kaduna/Lagos-Ibadan Railways, Airports and Second Niger bridge.

Compare to the bogus money borrowed? The whole country should have access to railway by now and also all federal roads should also be sparkling. Are you for real? Are u among those paid to support this government online?

vineyardfarms:





@ 2015 President Jonathan era, Nigeria debt profile at= N12.12 trillion with reserve us$48 billion. Mr intergrity the President Buhari leap to N32.2 trillion, nothing on ground to show. @2015 bag of rice @ N9k, against N36k - cement bag ,@N2000, against N4500- Pms @N87/lt, against N165/lt. Brother the difference is clear - DO THE MATHS

You are a big false claimed, reserved is drop from $67billion to just $22billion under Jonathan and debt is $42.633 as at june 2015. https://www.premiumtimesng.com/news/headlines/293012-fact-check-how-accurate-is-osinbajos-claim-on-nigerias-debt-profile.html. I have drop you link to read it in news yourself. Statistical analysis alone will make you want to even stone Jonathan and his government to death because Jonathan did not even get half of Jonathan government government get but yet performing than Jonathan. I don't like Buhari for only his nepotism and careless attitude but if it comes to achievements and love for this great country, I will pick the dead Buhari over alive Jonathan 100times

Broken2020:
By 2023 it will be N50.1 Trillion then the Chinese will come and take the collateral (Nigeria). Very myopic government.

THE CHINESE ARE COMING FOR THE OIL!

WE CAN CONTINUE TO BORROW SINCE WE ARE IN THE PATH TO DISINTEGRATE, THE NEW NATIONS WILL NOT BE RESPONSIBLE FOR THE DEBT OF NON-EXISTING ENTITY

If they selll Nigeria will it be enough to pay the debt? In 2023 I wonder what the total rise will be.

calcal:


THE CHINESE ARE COMING FOR THE OIL!

WE CAN CONTINUE TO BORROW SINCE WE ARE IN THE PATH TO DISINTEGRATE, THE NEW NATIONS WILL NOT BE RESPONSIBLE FOR THE DEBT OF NON-EXISTING ENTITY

The reason they won’t support disintegration

Damnnn Niggarrrr
Issoright, make nobody sha touch the 2,150 wey dey my account..na there we go get problem

How do the countries Nigeria borrow from raise such huge amount of money for lending without going into recession? What's their secret? Where are our Nigerian Economists? What's the essence of Economics as a course in the Universities?Where are our professors in Economics / Econ. Management? What solution are they proffering to save Nigeria from borrowing?How come we are yet to see articles on media on how to save,boost and sustain Nigerian economy on our own without depending on other countries.The end aim of education I suppose is problem solving.What then are our academic Gurus proferring as panacea to Nigerian continuos borrowing knowing full well that Governance is a collective venture and that Buhari can't do it all alone? Are there no more researchers,prolific writers and higher order thinkers in Nigeria?.

matm:
How do the countries Nigeria borrow from raise such huge amount of money for lending without going into recession? What's their secret? Where are our Nigerian Economists? What's the essence of Economics as a course in the Universities?Where are our professors in Economics / Econ. Management? What solution are they proffering to save Nigeria from borrowing?How come we are yet to see articles on media on how to save,boost and sustain Nigerian economy on our own without depending on other countries.The end aim of education I suppose is problem solving.What then are our academic Gurus proferring as panacea to Nigerian continuos borrowing knowing full well that Governance is a collective venture and that Buhari can't do it all alone? Are there no more researchers,prolific writers and higher order thinkers in Nigeria?.

When I'm suffering from dementia & auditory issues, Buhari is like.......

vineyardfarms:





@ 2015 President Jonathan era, Nigeria debt profile at= N12.12 trillion with reserve us$48 billion. Mr intergrity the President Buhari leap to N32.2 trillion, nothing on ground to show. @2015 bag of rice @ N9k, against N36k - cement bag ,@N2000, against N4500- Pms @N87/lt, against N165/lt. Brother the difference is clear - DO THE MATHS

In dollar terms, total debt (local and foreign) left by GEJ in 2015 was about $63bln. Total debt by Sep2020 was $84bln. Meaning PMB took roughly an additional $20bln in loans.

The main difference in the naira equivalent of N12T in 2015 compared with N34T in 2020 is the exchange rate used to convert from $ to N which has doubled since 2015

Latvin:


In dollar terms, total debt (local and foreign) left by GEJ in 2015 was about $63bln. Total debt by Sep2020 was $84bln. Meaning PMB took roughly an additional $20bln in loans.

The main difference in the naira equivalent of N12T in 2015 compared with N34T in 2020 is the exchange rate used to convert from $ to N which has doubled since 2015

Sir, can you JUSTIFY THE $20bn loan by PMB?? in terms of development?

vineyardfarms:


Sir, can you JUSTIFY THE $20bn loan by PMB?? in terms of development?

A few i can remember below;

1. Completion of airport remodelling (Lagos, PortHarcourt, Kano, Enugu)

2. Completed Railway infrastructure (Lagos- Ibadan, Itakpe-Warri)

3. Ongoing/about to commence railway infrastructure (Ibadan to Kano, PortHarcourt to Maiduguri, extension of Lagos rail into Apapa port, coastal railway from Lagos to Calabar)

4. Roads (major ones are Lagos- Ibadan, Abuja - Kano, Bodo - Bonny and Enugu - PortHarcourt). There are plenty more ongoing elsewhere

5. Second Niger bridge

6. Ajaokuta-Abuja-Kano major gas pipeline

7. Siemens Power deal to revamp electricity by generating more than 30,000 MW in phases and fixing transmission and distribution networks across the country

8. Agricultural revolution for food self sufficiency

9. Digital communications infrastructure

These are the ones I remember from the top of my head. A complete listing can be seen from the Debt Management Office website if you Google it. The challenge is to ensure that these assets can be fully commercialised for them to repay back the loans.

It will take some time to see the full impact but it is slow and steady.

[quote author=Latvin post=97644952]
A few i can remember below;
1. Completion of airport remodelling (Lagos, PortHarcourt, Kano, Enugu)
2. Completed Railway infrastructure (Lagos- Ibadan, Itakpe-Warri)
3. Ongoing/about to commence railway infrastructure (Ibadan to Kano, PortHarcourt to Maiduguri, extension of Lagos rail into Apapa port, coastal railway from Lagos to Calabar
4. Roads (major ones are Lagos- Ibadan, Abuja - Kano, Bodo - Bonny and Enugu - PortHarcourt). There are plenty more ongoing elsewhere
5. Second Niger bridge
6. Ajaokuta-Abuja-Kano major gas pipeline
7. Siemens Power deal to revamp electricity by generating more than 30,000 MW in phases and fixing transmission and distributionnetworks across the country
8. Agricultural revolution for food self sufficiency
9. Digital communications infrastructure
These are the ones I remember from the top of my head. A complete listing can be seen from the Debt Management Office website if you Google it. The challenge is

YOU ARE A DAY DREAMER