oyebanji44:
Good point from tinubu


As long as it is used for the intended purpose..

Like what buhari did to the south easterner by constructing the second Niger bridge ..

Is it wise ,for any one of them to criticise buhari for borrowing loan..

In country like Nigeria where do we derive most revenue to run the economy? Only crude oil, the crude oil that's what is used to repay loan's and you said he's right.
We can't even fund our national budget going to borrow as usual.
Even the train they constructed is in the terrorists zone and they're comparing with Japanese deficit.

reddingtonblack:




You should have taken your time to digest what TInubu is saying, borrowing or collecting loan is not bad itself, countries & large scale firms sort for loan all the time to finance projects, now what you use the loan to do is what is subjective to bad or good which i agree with Tinubu.

Borrowing loan to finance recurrent expenditure is counter-productive and i guess the point Tinubu is trying to make is that how about borrowing money to finance projects
& infrastructures that will be inaugurated into generating income/revenue should be the ideal.
Imagine someone collecting loan to finance a wedding or burial, then he cries loan is bad buh when you borrow money to acquire asset, the asset itself can service its loan & repay on a short or long run depends.

Tinubu is APC right ?

YorubaNiBaba:


https://dailypost.ng/2023/01/13/budget-deficits-not-necessarily-bad-tinubu-reacts-to-2023-appropriation/

Tinubu remains the most intelligent Presidential aspirant in the history of Nigeria outside MKO Abiola. What Tinubu said is based on sound economic principle.

Tinubu as a Senator in 1992 / 1993 was very deep in analysis and sound in his contribution that he became very noticeable among his peers and political observers in Nigeria. As a governor, he was in the opposition dissecting Obasanjo's policy and making his contribution on different fora. Tinubu Colloquium is a National Developmental Institute platform for the generation and incubation of Ideas for National development.

No person dead or alive has fought the kind of battle Tinubu has fought and is still fighting in Nigeria political history. Tinubu is fighting an intensive spiritual war. This is in addition to physical, mental and psychological warfare. No person has ever fought such war in Nigeria political history, not even Awolowo.

The forces of heaven that have brought him this far will ultimately lead him to the Presidency.

casualobserver:


I just watch a replay of an interview on channels. Where a professor summed up one of the biggest problems with Nigeria.

He said the problem of Nigeria isn’t corruption, the problem of Nigeria is a low intellectual capacity. It is this low intellectual capacity that leads to corruption.

What he is basically saying is that Nigerians don’t think right. Our current total govt revenue is less than $30b a year, our 2023 budget is $49billion at the official rate. But in reality it is more like $24b. We need to find An extra $30-50b a year MINIMUM just to arrest the poverty rate and population growth. Apart from the wastage on subsidy, there is no govt saving Anywhere that will make any difference don’t let anybody deceive you playing to the gallery.

It is not saving that will help Nigeria it is innovative new sources of revenue. Anyone who hasn’t got the ability to raise revenues and innovative ways to finance our social and infrastructure deficits is deceiving you by telling you he will stop leakages and channel the money into development. How much leakage can you stop when your entire expenditure is $25b and you need an additional $50b a year?

Like The professor said the problem with Nigeria is intellectual deficit. If you raise an additional $50b….even $20b. Even if they steal half of it, you will feel the development in the economy.

Ps I am not advocating corruption waste or theft, I am just pointing out the real issues and the intellectual deficiencies in the wastage and savings argument.

Govt does not earn enough revenue for any plugging of leakages to make a difference.

I will give you an instance...
If you start a very viable business and put your friend to run it. This your friend already know what you are worth. He has a mentality that you are already very comfortable and doesn't need the returns from the business. He decided to use the business and establish himself and every other person around him.
Every month he comes up with different stories, and always end up with "nothing came out of the business "
Please how will you see the $50b or the $20b?
When you hear corruption, don't think it's only at the "highest" level of government that it occurs. Even the very lowest it's there and it hinders growth.
When common fertilizer distribution to real farmers that do the farming, doesn't get to them. Rather it's hijacked by a few persons and sold to the highest bidder.

I understand the points you mentioned but they won't work if wastage, corruption, saving is left out.

To award contract, do you know the amount that gets to the real contactor?
Omo the matter is not here o

uniquetechng:
GEJ govt paid 80% of second Niger Bridge, BAT's assertion is flawed.

Na this I hate

He paid 80% of the project in what year?

If you say beginning of his tenure, why wasn't the project completed and no significant structure was seen?

If you say towards end of his tenure,
Why pay 80% of project money when project is not even up to 30% complete?

GEJ might have have done his part, Buhari also did his part.

For the person that said USA gave a condition that they will return the money only if it will be used to construct the bridge, don't you think the FG can divert it to other project once it gets to Nigeria?
And your stand contradicts the person that said GEJ paid 80% of the money. All just to discredit Buhari.

Jisenu Ike
Una well-done

arantess:

Only bridge?
What of the refineries per year?

You realise there's debt of 77trillion waiting for the next government

That's total debt that includes State debts

Rapuru14:
What does the idiot know?

I wouldn't call your peter obi and idiot,show some decorum and because this is a faceless forum doesn't mean you should display your abject lack of manners.

casualobserver:


When you hear someone talking about avoiding debt or thinks being debt free is automatically a good thing or has an aversion to debt especially in a developing economy, it shows the person has no real understanding of wealth creation. Don’t be confused buying and selling especially when you have sole distributor ship for sale whole country will make you wealthy without really understanding wealth creation and finance especially public development finance.

Debt is an instrument of wealth creation. Debt for investment is good debt for consumption is bad. So when you talk about debt, you have to distinguish what kind of debt you are talking about. Debt to pay fuel subsidy is suicidal and it is the root of our problems under Buhari. The debt incurred on subsidy every year is enough to build 1 refinery a year! If he had incited debt to fix our refineries, we wouldn’t import fuel, forex demand will be less inflation would be lower and there would be less need for subsidy because we aren’t importing fuel. Debt to build rail roads and schools is good debt because it will pay itself with a more efficient economy a better educated population who will earn more and pay more taxes.

When I see someone with an aversion for debt for debt sake or who talks about saving and cutting wastage to fuel Nigerians growth, I know the person is not serious. The is only 1 way to solve Nigerians problems going forward. Raise revenues, stop subsidies and secure sources additional debt for development projects hopefully financed with increased taxes/ revenues. Anyone who thinks they can take Nigeria forward by cutting wastage is a clown. At most you save $1b a year. Nigeria needs to find $500-$1trillion over the next 10 years to arrest the rot. Your savings is not going to make a dent. Only carefully targeted debt investment and massive revenue increase can solve the problem.

Any clown telling you he won’t travel with entourage is just playing to the gallery, I am not saying he should not cut down on entourages but how much do entourage cost? I will sell this guest house, I will sell that guest house is just insulting the intelligence of those who have any. It is not the money you save from cutting down your entourage or cutting down the presidential fleet that will make any difference to the development of the country.


Obasanjo sold all govt official quarters only for the same govt to give allowances far in excess of what it costs to run those official quarters.


Elon musk is the richest man in the world he borrowed money to buy Twitter. Dangote is the richest black man in Africa, he borrowed money to build his refinery. They are both likely going to get richer as a result. There is debt and there is debt. When you hear someone talking about saving when you are undeveloped or having an aversion for debt for debt sake..trust me the person has no clue.

You need to find a way to raise revenues by or inject an average of $50b a year in the public and social infrastructure of the economy and someone is talking about savings….that’s a sign of small mindedness…..someone guaranteed to keep the country in poverty..

Nice point. There are 2 types of economic model I think obi and Tinubu believes in.

PETER OBI'S MODEL

I see Peter Obi using the pdp model in economics, fiscal discipline with little or no borrowing, equating budget allocation to projected annual crude prices and forex inflow,remove/lessen import restrictions,etc.

That is if we make $20bn then our budget should be $20bn or little above it .

The advantages
This will seriously cut down on inflation, increase forex abundance, reduce the Naira to dollar price, improve trading especially importation of goods.
Also more geared towards saving.

The disadvantage
Economics restrictions, since we generate very little compared to our population and majority of generated revenues are on recurrent expenditure. Increasing competition btw local products and imports which can lower local productivity. Little investment in human capital development and infrastructure (but this can be solved by large investment from private sector in terms of ppp, but in truth only few indigenous companies has the wealth to take on large infrastructural development)

Conclusion
As a governor I believe obi used this model. Budgeting within your means.
With reduction in inflation, it may reduce the poverty rate and increase HDI *(may be a false sense of security)
Unless government revenue rises exponentially, this model is a maintenance style, it's help reduce poverty level for the current but exert a great strain on the economy in the future which makes it ever vulnerable.



TINUBU MODEL

Tinubu already would follow on massive borrowing just like buhari is doing. They're will massive borrowing mostly from the CBN and other local sources. Import trade restrictions.
Budget allocation will far exceed the projected revenue generation. No confinement to forex flow and like he said in his manifesto his budget won't be restricted to projected oil prices(good thinking towards diversification) .

advantages
Fluidity from forex inflows and crude prices reduces restrictions on how you spend. Money can be effectively spent on massive infrastructural drive, MSME and other productive endeavors. Import restrictions can spur local growth coupled with sufficient government funds intervention.
Reduce international strain on local economy productivity.
This can/may spur a multiplication effect on the economy.

disadvantages
Yes inflation on the high (will sink many into poverty). Import restrictions can stunt growth in some sectors (especially trading dealing with imported goods), this can be cushion by using indigenous product which may have lesser qualities and quantities.
With deficit in our power infrastructure and transportation(it'll take years, decades to provide standard infrastructure at this rate) they'll be higher cost of production which compounds on an ever increasing inflation.
Increase in naira burden, forex restrictions.

Conclusion
As a former governor this model was used in Lagos with a gross budget deficit, Lagos 2023 budget has a 300bn+ budget deficit.
While this will improve on productivity, spur IGR and project a future economic strength(might take years or decades).

For the present it compounds inflation, increase poverty rate (can be cushion by an increasing government spends on vulnerable individuals and household, real effective spending not the joke buhari is doing).


MY OPINION

I think a middle ground should be established btw both model they should be massive burrowing but at same time we have to display good fiscal discipline and pay increasing attention in forex inflows and revenue generation.

A maintenance model is not enough to meet the demands of an ever increasing population, it gives the people a false sense of security while compounding their woes for the future.

The Radical approach either, while it project an increase in local productivity increases the strain on many families due to inflation. Lack of growth following the government borrowing is a sure fire way for economic crises hence funds must be used effectively, if done growth should exceed population demands and secure a strong economic future.


Using both model can avert a current crises and a future one.

casualobserver:


I just watch a replay of an interview on channels. Where a professor summed up one of the biggest problems with Nigeria.

He said the problem of Nigeria isn’t corruption, the problem of Nigeria is a low intellectual capacity. It is this low intellectual capacity that leads to corruption.

What he is basically saying is that Nigerians don’t think right. Our current total govt revenue is less than $30b a year, our 2023 budget is $49billion at the official rate. But in reality it is more like $24b. We need to find An extra $30-50b a year MINIMUM just to arrest the poverty rate and population growth. Apart from the wastage on subsidy, there is no govt saving Anywhere that will make any difference don’t let anybody deceive you playing to the gallery.

It is not saving that will help Nigeria it is innovative new sources of revenue. Anyone who hasn’t got the ability to raise revenues and innovative ways to finance our social and infrastructure deficits is deceiving you by telling you he will stop leakages and channel the money into development. How much leakage can you stop when your entire expenditure is $25b and you need an additional $50b a year?

Like The professor said the problem with Nigeria is intellectual deficit. If you raise an additional $50b….even $20b. Even if they steal half of it, you will feel the development in the economy.

Ps I am not advocating corruption waste or theft, I am just pointing out the real issues and the intellectual deficiencies in the wastage and savings argument.

Govt does not earn enough revenue for any plugging of leakages to make a difference.

I have to repost this, in case obidients missed it

reddingtonblack:

don't quote me

A budget deficit can lead to higher levels of borrowing, higher interest payments, and low reinvestment, which will result in lower revenue during the following year.

Indispensable85:


Just shut up you dunce.
Go and study the budgetary system of the big nations and stop exposing your ignorance in public.

URCHINS are you a big nation...you are the poverty capital of the world....

Butterfly thinking like bird



A budget deficit can lead to higher levels of borrowing, higher interest payments, and low reinvestment, which will result in lower revenue during the following year.

Obaofaba:
Jagaban is my president....


The man is very vast with productive agendas, he knew and understand Nigeria more than any of his challengers.

He has men in every local government area in Nigeria.

His cabinet members has been known already.

Positive results will start showing from 29th May.

may your kids life be like him

Perhaps you should be use

AmuDimpka:


may your kids life be like him

as collateral for the next load as u no wan get sense.

oyebanji44:
Good point from tinubu


As long as it is used for the intended purpose..

Like what buhari did to the south easterner by constructing the second Niger bridge ..

Is it wise ,for any one of them to criticise buhari for borrowing loan..

etebjohn:
Perhaps you should be use as collateral for the next load as u no wan get sense.

mugu

oyebanji44:
Good point from tinubu


As long as it is used for the intended purpose..

Like what buhari did to the south easterner by constructing the second Niger bridge ..

Is it wise ,for any one of them to criticise buhari for borrowing loan..

Oya make he come national debate explain this to Nigerians na.

This is the same man that said, abi na statistics we go chop? He has nothing to do with budget because he doesn't even know what happens around him. That's why he's running away from debate. Let him come for debate and explain this to Nigerians.

Johnthejohn:
What does Tinubu know about budget

He just schooled u buddy, we are not talking of Main Mkt or Ariaria or Alaba mkt buying and selling here hence u wont understand

Blaze14k:


Hahahahahahahah u see ur life

What a shame. ..


At this age....well, l am not your English teacher

Bigleaf1006:


I wouldn't call your peter obi and idiot,show some decorum and because this is a faceless forum doesn't mean you should display your abject lack of manners.

Call out any selfish leader without fear. It's the supposed foolish "respect" that make them toy with our future without fear of consequences. Tifnubu is an id!ot. He doesn't deserve any respect by sane humans.

Simeonjoe1:


Nice point. There are 2 types of economic model I think obi and Tinubu believes in.

PETER OBI'S MODEL

I see Peter Obi using the pdp model in economics, fiscal discipline with little or no borrowing, equating budget allocation to projected annual crude prices and forex inflow,remove/lessen import restrictions,etc.

That is if we make $20bn then our budget should be $20bn or little above it .

The advantages
This will seriously cut down on inflation, increase forex abundance, reduce the Naira to dollar price, improve trading especially importation of goods.
Also more geared towards saving.

The disadvantage
Economics restrictions, since we generate very little compared to our population and majority of generated revenues are on recurrent expenditure. Increasing competition btw local products and imports which can lower local productivity. Little investment in human capital development and infrastructure (but this can be solved by large investment from private sector in terms of ppp, but in truth only few indigenous companies has the wealth to take on large infrastructural development)

Conclusion
As a governor I believe obi used this model. Budgeting within your means.
With reduction in inflation, it may reduce the poverty rate and increase HDI *(may be a false sense of security)
Unless government revenue rises exponentially, this model is a maintenance style, it's help reduce poverty level for the current but exert a great strain on the economy in the future which makes it ever vulnerable.



TINUBU MODEL

Tinubu already would follow on massive borrowing just like buhari is doing. They're will massive borrowing mostly from the CBN and other local sources. Import trade restrictions.
Budget allocation will far exceed the projected revenue generation. No confinement to forex flow and like he said in his manifesto his budget won't be restricted to projected oil prices(good thinking towards diversification) .

advantages
Fluidity from forex inflows and crude prices reduces restrictions on how you spend. Money can be effectively spent on massive infrastructural drive, MSME and other productive endeavors. Import restrictions can spur local growth coupled with sufficient government funds intervention.
Reduce international strain on local economy productivity.
This can/may spur a multiplication effect on the economy.

disadvantages
Yes inflation on the high (will sink many into poverty). Import restrictions can stunt growth in some sectors (especially trading dealing with imported goods), this can be cushion by using indigenous product which may have lesser qualities and quantities.
With deficit in our power infrastructure and transportation(it'll take years, decades to provide standard infrastructure at this rate) they'll be higher cost of production which compounds on an ever increasing inflation.
Increase in naira burden, forex restrictions.

Conclusion
As a former governor this model was used in Lagos with a gross budget deficit, Lagos 2023 budget has a 300bn+ budget deficit.
While this will improve on productivity, spur IGR and project a future economic strength(might take years or decades).

For the present it compounds inflation, increase poverty rate (can be cushion by an increasing government spends on vulnerable individuals and household, real effective spending not the joke buhari is doing).


MY OPINION

I think a middle ground should be established btw both model they should be massive burrowing but at same time we have to display good fiscal discipline and pay increasing attention in forex inflows and revenue generation.

A maintenance model is not enough to meet the demands of an ever increasing population, it gives the people a false sense of security while compounding their woes for the future.

The Radical approach either, while it project an increase in local productivity increases the strain on many families due to inflation. Lack of growth following the government borrowing is a sure fire way for economic crises hence funds must be used effectively, if done growth should exceed population demands and secure a strong economic future.


Using both model can avert a current crises and a future one.

Hello sir, mrvitalis what's your takes on this

Rapuru14:

Call out any selfish leader without fear. It's the supposed foolish "respect" that make them toy with our future without fear of consequences. Tifnubu is an id!ot. He doesn't deserve any respect by sane humans.

Can you say same of your obi also can you say it to the face of his supporters let alone je himself!!
Politics isn't do or die,because you are on opposite sides today doesn't mean your interest can't align tomorrow......don't burn all your bridges because you don't want your opponent to reach you,what if tomorrow you need to cross to your opponent side.

casualobserver:


I just watched a replay of an interview on channels. Where a professor summed up one of the biggest problems with Nigeria.

He said the problem of Nigeria isn’t corruption, the problem of Nigeria is a low intellectual capacity. It is this low intellectual capacity that leads to corruption.

What he is basically saying is that Nigerians don’t think right. Our current total govt revenue is less than $30b a year, our 2023 budget is $49billion at the official rate. But in reality it is more like $24b. We need to find An extra $30-50b a year MINIMUM just to arrest the poverty rate and population growth. Apart from the wastage on subsidy, there is no govt saving Anywhere that will make any difference don’t let anybody deceive you playing to the gallery.

It is not saving that will help Nigeria it is innovative new sources of revenue. Anyone who hasn’t got the ability to raise revenues and innovative ways to finance our social and infrastructure deficits is deceiving you by telling you he will stop leakages and channel the money into development. How much leakage can you stop when your entire expenditure is $25b and you need an additional $50b a year?

Like The professor said the problem with Nigeria is intellectual deficit. If you raise an additional $50b….even $20b. Even if they steal half of it, you will feel the development in the economy.

Ps I am not advocating corruption waste or theft, I am just pointing out the real issues and the intellectual deficiencies in the wastage and savings argument.

Govt does not earn enough revenue for any plugging of leakages to make a difference.

I'm anmoyed i can't like this post a hundred times.

Good one filled with wisdom

AmuDimpka:
don't quote me

A budget deficit can lead to higher levels of borrowing, higher interest payments, and low reinvestment, which will result in lower revenue during the following year.

LOL ! speaking of revenue, the major determinant of A nations GDP growth is solely Local productivity and that is what we are saying that regardless of budget of deficit if the country is producing at optimal level the economy will still boom.
American one of the biggest economy if the number one the world buh they do experience budget deficit.
I think the problem is that you people are not just being open minded, Everything be it good ones has demerits, so posting budget deficit demerit holds no water, what matters is can the benefit outweigh the downsizes under efficiency

oyebanji44:


What a shame. ..


At this age....well, l am not your English teacher

Who is dis one.. abeg shift one syd hahahaha

A bridge that would be towed? Also funded by returned Abacha loot but Bubu said Abacha never stole. Una sense don rust!

oyebanji44:
Good point from tinubu


As long as it is used for the intended purpose..

Like what buhari did to the south easterner by constructing the second Niger bridge ..

Is it wise ,for any one of them to criticise buhari for borrowing loan..

alsudan:
What does the idoi.t know about Budget Deficit?

No wonder he the dodge debate.

He was asked a question about the current deficits in the 2023 budget that bad leader Buhari signed.

My take is that Tinubu will do himself good to stylishly distance himself from Buhari incompetency because I know his govt will certainly be different

Simeonjoe1:


Hello sir, mrvitalis what's your takes on this

Let me read through

Johnthejohn:
What does Tinubu know about budget

You obviously know nothing, the whole world is in a. Deficit

Bigleaf1006:


Can you say same of your obi also can you say it to the face of his supporters let alone je himself!!
Politics isn't do or die,because you are on opposite sides today doesn't mean your interest can't align tomorrow......don't burn all your bridges because you don't want your opponent to reach you,what if tomorrow you need to cross to your opponent side.

You're talking nonsense. If Obi doesn't do well I'll lead a revolution against him. If your culture condones nonsense in the form of hero worship we don't especially me.

Johnthejohn:
What does Tinubu know about budget

You are asking what an accountant knows about budget.
But you believe more in a trader who knows nothing about it

mrvitalis:
This people that wrote this rubbishes for agbdo no nothing about economy

A country who's debt servicing to revenue is already over 100% you want to borrow more ?

What's Japanese debt servicing to revenue ratio .....I can bet you they would never mention that
The funny thing is the more we show lack of fiscal discipline the more our lenders give us high interest rate which then compound our already terrible revenue to debt service ratio

Solutions show fiscal discipline , remove subsidy , cut cost of governance , your president of a country which GDP is less than that of Huston is having a motorcade of 50 cars , 15 private jets ? For a small economy as ours ?

My advice is one remove subsidy introduce a #75 tax on every liter of fuel

Reduce number MDAs

Infact go listen to Peter obi he Sabi pass me

You are a big liar , our debt servicing to revenue is not even up to 30%.
Did you read the budget at all?
All what Peter Obi is saying is not practicable.
We are running a presidential form of government in a country of over 200 million. Not a personal estate