Nigeria’s foreign loans set for all-time high at $45bn as Buhari begs for additional $4bn loan

Historic debt level

The nation’s external debt stock could hit over $36 billion if the National Assembly approves the $4.054 billion new borrowing request presented by the executive to the federal legislators, yesterday.

President Obasanjo had to launch a relentless debt relief campaigned for Nigeria when in 2004 the nation’s debt external stood at $36 billion, with the country spending more on interest payments than on health care and education, put together. This debt relief effort yielded fruit on June 29, 2005, when the Paris Club and Nigeria agreed on a US$18 billion debt relief package, with the country paying off the balance to free the nation.

Official figures of the Debt Management Office put the external debt stock at $32. 859 billion, as of March 31, this year.

Since then, the National Assembly has approved an $8. 325 billion new borrowing plan for the President Muhammdu Buhari, administration to enable it to implement the 2021 budget.

That approval followed the consideration of a report on the 2018-2020 External Borrowing (Rolling) Plan by the Committee on Local and Foreign Debt.

Chairman of the Committee, Senator Clifford Ordia, had explained that the borrowing was imperative due to the shortfall in the country’s annual revenues in relation to the need for rapid infrastructural and human capital development, adding, “we have had to pass deficit budget every year, requiring us to borrow to finance the deficit in our budget.”

However, the administration has yet to borrow the entire figure, as approved, as officials of the Federal Ministry of Finance, Budget and National Planning are said to be weighing the options available to the nation, in order to get the best deal, with concessionary facilities being considered as their preference.

It was learnt that the 2018-2020 External Borrowing Plan contained $36.837 billion.

However, only about $7 billion was approved by the Sen. Bukola Saraki-led Senate of the 8th Assembly, in the first instance.

Consequently, the executive was said to have continued to re-present the request to the Red chamber.

For instance, the July approval was obtained after the president re-presented the request for $26.154 billion.

Debt servicing capacity should critical — MudaYusuf

For most analysts, while the reason for the borrowing spree has become worrisome due to the weakening capacity to service the debts.

Dr Muda Yusuf, Economist and former director-general of the Lagos Chamber of Commerce and Industry, LCCI, said: “The growing stock of debt is a cause for concern. Current levels of debt are already at an unsustainable threshold. If over 80 per cent of revenue is used to service debt, then it is about time to slow down on debt accumulation.

“From reports, this request is new as it was not covered in the original borrowing. It is an addendum to the original plan which had already been approved.

‘‘Of course, there is merit in borrowing for infrastructure development, but even at that, the capacity to service the debt sustainably should be a critical consideration. The risk is that at this rate, part of the borrowing will inevitably be used to fund recurrent expenditure. Already, actual revenue can hardly cover the recurrent budget. The risk of ending up in a debt trap is quite high.”

Also commenting, Ayodeji Ebo, Head, Retail Investment, Chapel Hill Denham, a Lagos based investment house, said the rate of accumulation of loans by the federal government is becoming unsustainable due to low productivity.

He said: “For transparency, these borrowings should be attached to projects like the Sukuk bond offer. The rate of accumulation of loans is becoming unsustainable due to low productivity. With debt servicing as a proportion of actual revenue almost hitting 100 percent, it calls for serious concern. The exchange rate risk that balloons our borrowings in naira value will also be amplified with continued external borrowings.”

https://www.vanguardngr.com/2021/09/nigerias-foreign-loans-set-for-all-time-high-at-45bn-as-buhari-begs-for-additional-4bn-loan/amp/

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Abeg, how person fit escape this country?

chatinent:
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Abeg, how person fit escape this country?

Just die... and you are free

ojun50:

Just die... and you are free

I have tried hanging myself, the tissue paper keeps cutting.

Gbese and more gbese.

Tufiakwa

chatinent:


I have tried hanging myself, the tissue paper keeps cutting.

Keep trying

The chief commander of failure has finished Nigeria walahi.

Where are those Alausa clowns that were screaming in 2014/2015 that Buhari was removed as HOS for refusing to take IMF loans?

These same bastards of Ariyanla Olosho Mall where telling the world that Buhari will never stoop low and take loans like the GEJ govt.

Now you all can see and feel it as well, that there has never been any other Nigerian or African president that has been more useful to the Jewish banksters in London and New York.

When that sleezy oil man turn Anglican Priest (Welby) was shilling for this same Buhari just as the notorious gay spy club aka Cambridge was covering Buhari's ass over his fake Cambridge certificate, that was when I knew that this idiot they call Buhari was chosen for one specific purpose:

Destroy the economy of Nigeria through his foolishness compounding it further by unleashing havoc in the form of his Fulani homosexual/bestiality militia towards impoverishing the masses and making it easier for him to go shopping for Jewish worthless fiat paper money.

I don't blame the cow suckling autistic Buhari, it is these trousered illiterates and fools in 2014 that lied and slandered for Buhari to get into Power.

Where is Gbawe, e-gift, TonyeBarcanista, Beremx , arresa , plaindealer, cleverly and all those retinue of alausa e-touts now?

BASTARDS.

Why is Buhari not considering obtaining loan from LAPO?

We will end up selling Katsina state to repay the loans

This cartoon really captures Buhari and APC Orwellian administration.

Nigeria is now a borrow country.
Lalasticlala.

RevDesm0ndJuju:
This cartoon really captures Buhari and APC Orwellian administration.

They have turned things upside down. Imagine after NASS two months recess, the first thing was to ask for loan, which Rubber stamps Lawan and co will grant. Yet travel round Nigeria, you ask your self were are the infrastructure, apart from this overbloated rail projects. Our roads are so deplorable. Things are never this bad.

iwaeda:
Historic debt level

The nation’s external debt stock could hit over $36 billion if the National Assembly approves the $4.054 billion new borrowing request presented by the executive to the federal legislators, yesterday.

President Obasanjo had to launch a relentless debt relief campaigned for Nigeria when in 2004 the nation’s debt external stood at $36 billion, with the country spending more on interest payments than on health care and education, put together. This debt relief effort yielded fruit on June 29, 2005, when the Paris Club and Nigeria agreed on a US$18 billion debt relief package, with the country paying off the balance to free the nation.

Official figures of the Debt Management Office put the external debt stock at $32. 859 billion, as of March 31, this year.

Since then, the National Assembly has approved an $8. 325 billion new borrowing plan for the President Muhammdu Buhari, administration to enable it to implement the 2021 budget.

That approval followed the consideration of a report on the 2018-2020 External Borrowing (Rolling) Plan by the Committee on Local and Foreign Debt.

Chairman of the Committee, Senator Clifford Ordia, had explained that the borrowing was imperative due to the shortfall in the country’s annual revenues in relation to the need for rapid infrastructural and human capital development, adding, “we have had to pass deficit budget every year, requiring us to borrow to finance the deficit in our budget.”

However, the administration has yet to borrow the entire figure, as approved, as officials of the Federal Ministry of Finance, Budget and National Planning are said to be weighing the options available to the nation, in order to get the best deal, with concessionary facilities being considered as their preference.

It was learnt that the 2018-2020 External Borrowing Plan contained $36.837 billion.

However, only about $7 billion was approved by the Sen. Bukola Saraki-led Senate of the 8th Assembly, in the first instance.

Consequently, the executive was said to have continued to re-present the request to the Red chamber.

For instance, the July approval was obtained after the president re-presented the request for $26.154 billion.

Debt servicing capacity should critical — MudaYusuf

For most analysts, while the reason for the borrowing spree has become worrisome due to the weakening capacity to service the debts.

Dr Muda Yusuf, Economist and former director-general of the Lagos Chamber of Commerce and Industry, LCCI, said: “The growing stock of debt is a cause for concern. Current levels of debt are already at an unsustainable threshold. If over 80 per cent of revenue is used to service debt, then it is about time to slow down on debt accumulation.

“From reports, this request is new as it was not covered in the original borrowing. It is an addendum to the original plan which had already been approved.

‘‘Of course, there is merit in borrowing for infrastructure development, but even at that, the capacity to service the debt sustainably should be a critical consideration. The risk is that at this rate, part of the borrowing will inevitably be used to fund recurrent expenditure. Already, actual revenue can hardly cover the recurrent budget. The risk of ending up in a debt trap is quite high.”

Also commenting, Ayodeji Ebo, Head, Retail Investment, Chapel Hill Denham, a Lagos based investment house, said the rate of accumulation of loans by the federal government is becoming unsustainable due to low productivity.

He said: “For transparency, these borrowings should be attached to projects like the Sukuk bond offer. The rate of accumulation of loans is becoming unsustainable due to low productivity. With debt servicing as a proportion of actual revenue almost hitting 100 percent, it calls for serious concern. The exchange rate risk that balloons our borrowings in naira value will also be amplified with continued external borrowings.” https://www.vanguardngr.com/2021/09/nigerias-foreign-loans-set-for-all-time-high-at-45bn-as-buhari-begs-for-additional-4bn-loan/amp/

Buckeyemedia1

iwaeda:


They have turned things upside down. Imagine after NASS two months recess, the first thing was to ask for loan, which Rubber stamps Lawan and co will grant. Yet travel round Nigeria, you ask your self were are the infrastructure, apart from this overbloated rail projects. Our roads are so deplorable. Things are never this bad.

The projects are the weapons bought for military unfortunately bandits that have no source of revenue keeps invading military in their base stealing the weapons

The project are the ransom paid to bandits and rehabilitation for Boko Haram program

The projects is the oil exploration going on in the north for over 6 years now, when Dangote already saw the result before going to build refinery in another region

The projects are numerous but too big to be seen because you can't see jihad

The Loan President.

Blood is thicker than water

Bambiala can never be erased from a northerner

Na so so begi begi dem Sabi

From North to South.. East to West... Na so so beg beg... The begging president can never change his colour.

Poster below me is also in the spirit. No mind the mistake of a president wey we get.. Forward ever for legit hustling citizens.. Backward ever for every greedy politician.

This bambiala president wetin dey worry you.them take begging swear for you? I'm hoping for a day when all the countries you go and do bambiala say no to you

Aboki and bambiala culture sef

Where's that Bubu houseboy wey dey sell dead vulture.make he come defend him darling daddy

Lobatan

We are in soup

I took a loan from some app and have been getting threat messages and curses. I have been ill for months now and can't pay back for now.
Am I in trouble?

This is terribly serious. How come Debt Management office and Ministry of Finance are not seen this grave calamity coming ahead? Venezuela and Zimbabwe will be laughing at us, if we continue like this.

Emefielle why

The change just de begin oooo... Failure at it's peak

I reserve my comment..

MORE LOANS TO SHARE AMONG THE CABAL.
THIS IS ANOTHER FORM OF LOOTING IN DISGUISE.
WHAT ABOUT THE RECOVERED 'abacha loot'?
ALL GONE.
BUHARI,YOU HAVE LESS THAN TWO YEARS TO LEAVE ASO ROCK.
WHO WILL REPAY ALL THE LOAN YOU HAVE COLLECTED SO FAR?
THIS APC LED ADMINISTRATION IS JUST TRASH.

It's just unfortunate and the loan doesn't improve the common man standard of living.

BUHARI HAS MISMANAGED OUR ECONOMY!

Buhari don use nijeriya do yahoo