CharleyBright:
Oga, which loan are you referring to?
There are hundreds of FG loans out there.
Pls when creating a thread, do well to get down to specifics.
Your write up is too vague.

mrvitalis:


So tell me is there any infrastructure projects now u can do that can make you a profit of 165 billion dollars in profit.... Please I challenge you to tell me .

mrvitalis:
This is exactly what I have been saying here... The loan is fantastic but the application is bad

If u use this money to build roads and bridges it's gone we need to pay 37.5 billion dollars every year in interest plus 125 billion in actually loan payments

So tell me is there any infrastructure projects now u can do that can make you a profit of 165 billion dollars in profit.... Please I challenge you to tell me

If am president right now and get 2.5 billion dollars interest free for 10 years

1) I would call the top 20 pharmaceuticals companies in Nigeria owned by Nigerians

a) what are you importing today that you can produce locally if funds are available

b) what do you need to expand your operations across Africa... I want nigerian pharmaceutical companies to control 50% of Sub Saharan African pharmaceutical market


2) we call banks togethers.. We have 2.5 billion dollars... You can take it on loan for 3% interest rate for 8 years.. 3 years interest free

But this loan is only available to the pharmaceutical manufacturing industry

And you must give them the loan at 10% max for 7% and 2 years minimum intensity free

The massive impact on this would create over 500k direct jobs

Increase revenue from the pharmaceutical companies by over 500 billion yearly ( Now this is sustainable revenue, this is what you use to build infrastructure, this is what u use to build roads not loans

Increase GDP by over 5 billion dollars

In 8 years we get the loans plus 375 million dollars... That should cover for any loss in loan collection

We repay the loan within 10 years with didn't add to our debt servicing, we didn't add to our debt burden

We created Job

That's why I said I need loans like this up to 15 to 20 billion dollars

Funkyswagzz:


Good ideas but I must tell you, untill we are liberated from world bank and those causing these atrocities everything will remain the same.

budaatum:


Spend it in building the infrastructure that enables us to say "and there was light". With uninterrupted electricity, Nigeria will generate far more than enough to pay the loan back in a shorter time as Nigerians will use the electric energy to create jobs and revenue.

Alternatively, spend it on improving the infrastructure of our brains so we learn to understand that from the sweat of our brow shall we eat and to accept the taxation of the god houses. That alone will make the loan
unnecessary.

mrvitalis:

Name one thing just one think that we can produce more of when we have light that we can't produce now I dare you

budaatum:


We can not produce ordinary orange juice because we do not have sufficient cheap energy to store it. We can not even process our cocoa because we lack the energy to process it.

We definitely can not build factories that produce anything at a scale that makes it competitive to sell in the world market.


https://www.youtube.com/watch?v=P7fi4hP_y80?si=CAFS4Tfiib7oouIp

grandstar:
Funkyswagzz
What you wrote here is ludicrous to say the least. I watched a white man say similar on Tiktok

This is one of the best loan terms in the world and all you want to do is to condemn it because it seems so good to be true. That is the problem.

"Why would the World Bank be so generous to give a shithole country such a largess? The West does not want any African country to rise blah blah."

Forget all these Naira depreciation drama.

First of all, the primary purpose of the loan is enable government raise government revenue by 3.5% of GDP within the next 3 years. With Nigeria's GDP at $250bn, that 3.5% will yield the equivalent of $8.75bn in Naira equivalent. Some of these revenues will be in dollars. In 40 years, it could be yielding $100bn a year equivalent as the GDP will be much larger.

The interest payments are too low to be considered an issue. Did Nigeria not get $30bn in debt cancelled when it did a buyback with $12bn during OBJ's time in office.

Don't swallow every nonsense you see online.

Funkyswagzz:


Have you asked yourself what they will use the loan for?

grandstar:


It was expressly stated there: to assist the country grow annual revenue by 3.5% of GDP.

mrvitalis:

Lmaooo you think we don't produce juice?

The fact that you think we need constant power grid electricity to store orange juice shows you know little about the sector

One the main reason we don't have orange juice factory is because our cost of production is high...

budaatum:


Is our cost of production not high because the cost of inputs, which includes electricity for refrigeration, is high?

mrvitalis, Nigeria does not produce orange juice, least not as much as we ought to considering our orange loving climate and fertile soil. Most farm products don't survive further that their season because of the prohibitive cost of refrigeration.

We definitely do not produce much of anything that requires robotic machinery to produce profitably and in bulk. Just imagine the cost of the factory below being out of service for an hour due to power cuts or having to generate power with diesel. If you were considering setting up a similar factory and don't first solve your power issues, you'd be better off throwing your money in the lagoon.


https://www.youtube.com/watch?v=Zn6scKf7k_0?si=Yrut5YPhQSCWHfSw

mrvitalis:

Using my factory as an example... There is no business factory today that cost of electricity is more than 10% max of the cost of production

I use diesel all through and it's around 2.7% the cost of production

budaatum:


What do you produce in your factory?

What is the capacity of your factory? As in how much of what you produce do you produce in your factory?

Funkyswagzz:


One thing you know is this present government lack transparency. All the efforts they've made to make the living conditions of its citizen better is very insignificant instead things are getting worse. Unless we see a miracle happening I don't see any turn around for the next one year. To say the least you've not increased the salary of civil servants and you went ahead to establish ministry of livestock. If this is a government that is serious I won't even waste my time write this post cos I know within 10 years should pay the loan back to world bank.

grandstar:

To bring the economy back to solvency, would need some austerity and to restructure the economy.

Before things get better, it would take some time. The country needs some major readjustments. Expect more pain before any form of relief.

mrvitalis:

Does that matter? I rather not say it's private

What I am going to say is I challenge anyone that can name a factory where power contribute more than 10% the cost of production and I would give them 1 million instantly

Not even metal extraction has that

officialwdhtv:
The situation in Houston has been declared a crisis after 4 days without electricity supply.

Take a listen!!!

#wetindeyhappentv


https://www.youtube.com/watch?v=Dj5nWmhGV2Q


https://www.houstonchronicle.com/news/houston-weather/hurricanes/article/houstonians-survived-week-power-hurricane-beryl-19573547.php

budaatum:


Not just a factory, mrvitalis, but also the factoring of minds.

See the consequence of no power for a week then equate it to Nigeria and tell me we are not loosing at least 50% which could have been utilised to energise our minds.

mrvitalis:

If sweets and chewing gum factory, noodles factory, biscuits factory can operate in Nigeria with gen and still be cheaper than those produced in countries with power proves my point.

budaatum:


"Chewing gum factory, noodles factory, biscuits factory" are not "cheaper than those produced in countries with power operating effectively".

That's why we import cheap instead of hiring locally to produce our own locally.

But what made me post it was what I perceived as bias, "factory owner needs capital to expand production", which then made me consider my bias, which is, "Electric power energises".

Cheap available energy subsidises all businesses and enables them to be more productive, and it energises the consumer to consume as the post shows. If my fridge works 24-7 I'm more energised to fill it with what many sell that delights me.

As for factories you didn't know are shutting down during power cuts in a country with reliable electricity, I lol. But as said, different biases.

grandstar:


Anyone who expected things to get better upon Tinubu assumption of office or any candidate whatsoever is ignorant of the realities on ground. There's need for many to understand economics and politics.

Tinubu met an empty treasury. As if that was not enough, the previous government had over borrowed that debt servicing was eating up almost the entire government revenue.

Debt servicing was over 100% of government revenue in 2022. In 2023, it was estimated that debt servicing would eat up 73.5% of government revenue. Imagine if your personal finances were like these? You earn 100k and you spend 73.5% of it on debt servicing, leaving you with only N23,500.

Buhari during his 8 years brought in policies that destroyed the economy, the most deadly being the rigid exchange rates policy that fixed the rates at prices that did not reflect market value.

He also refused to cut spending and instead went on a borrowing spree. Public debt leapt from around N12tr in 2015 to 97tr in 2023.

So, Tinubu met an empty purse, a senseless exchange rate policy that encouraged roundtripping and mountainous public debt.

To bring the economy back to solvency, would need some austerity and to restructure the economy

The fuel subsidy which accounted for a lot of borrowing to provide petrol was suspended. For the subsidy to be totally scrapped, the price has to be deregulated as done with diesel and kerosene.

So, the huge increase in fuel price would fuel inflation.

Another area needing attention was the exchange rate. Tinubu floated the exchange rate to allow the multiple exchange rates merge into one. This has been quite achieved. The disparity between the official rate and black market rate has narrowed greatly.

Prior to this, during the Buhari years, well connected people would buy the dollar at the official rate of N440 and sell it at the parallel market at N660 People, especially bankers made a fortune doing this. But now that the 2 rates have narrowed greatly, the practise would either largely have gone down.

Before things get better, it would take some time. The country needs some major readjustments. Expect more pain before any form of relief

Tinubu could bring in policies to quicken the process but hasn't. At this juncture, the government needs people who can think outside the box.

For the ministry of livestock, why do you think government set it up? Its primary purpose is to end friction between herders and farmers. The government is taking a holistic approach.