i am currently do my thesis , i was very shock to see that to find out that nigeria has one of the lowest debt (loan) to GDP in the world , because as at june 2013 our external loan (debt) is just 10 billions which is only around 5% of our GDP , the only sovereign countries to have a better ratio then Nigeria are Iran 4%, Algeria 3%while Brunei and Liechtenstein at 0% While countries such as Luxembourg have 3,443%, Ireland have 1,008, Iceland 999% , Singapore 480% United Kingdom 406% Sao Tome and Principe 349% and holland has 344% , still even if we use per capital income to measure it still look very good because the current per capital income of Nigeria is USD 2,827 (460,000) a year so if you want to measure debt to capita income , with a debt of about 10 billions dollar with a population of about 160 million that means every nigerian owes about 65 USD (11,000 Naira) that about 2% of our per capital income, even if we use that average of the 2 dollars a nigerian earn a day , is still less then 10% of our total income as debt, because if we look at USA debt is about 17 trillion with population of about 350 millions thus every American owes like 52,000 USD , that is almost 100% of their per capita income which is 52,000 that is almost 250% of their average income which is 18,000 dollars, So UK with debt of about 10 trillion with population of about 64 million that means every Britain owes like USD 27,000 that is like 85% of their per capita and like 120% of their average income

Who do I pay the 65 USDs that me and my close family members owe and what happens after I have paid it?

My point is, all the figures/statistics that you are quoting means nothing to the majority of Nigerians. I won't be suprised if there are some people that have not consumed up to 65 USDs in their life

It is GOOD that Nigeria has low debt.
Infact I'll take that back... it is VERY VERY VERY GOOD that Nigeria has low debt.
So, OP I agree.

Ebele

my guy op u try for this report...to be sincere these economic stats and figures are cosmetic... the USA owes so much debt yet they are the most powerful dynamic nation. naija's correct and tidy economy is tearing people stomach with ulcer, hunger, lack and want. Mr economist no one should suffer from this stingy economic policies. America knows this and you also know this.

Aggrippa: my guy op u try for this report...to be sincere these economic stats and figures are cosmetic... the USA owes so much debt yet they are the most powerful dynamic nation. naija's correct and tidy economy is tearing people stomach with ulcer, hunger, lack and want. Mr economist no one should suffer from this stingy economic policies. America knows this and you also know this.

No, you dont get it!! It simply means we can start taking debts without really having default problem. It means that very soon many financial institutions globally would start looking to dump debt on the Nigerian private sector. And I tell you it is a good thing. Look at the list of all the top debtor countries, they are well developed.

This is how it works. Lagos wants to build a light rail system but doesnt have enough money to complete it. Because our debt to GDP ration is low, an investment bank like say Goldman Sachs would think, hmmmm...not a bad idea to put some of our money on that project. So they arrange a tool and fund the project. Or Dangote wants to build a refinery and needs a loan of $5Bn. HSBC looks at our Debt to GDP ration and says wow, those guys are not going to be defaulting any time soon. They throw the money in for Dangote.

In a nutshell, Nigerians would be the beneficiaries. Debt develops countries. The kind of debt we shouldn't be taking is the ones obtained by Government to fund recurrent expenditure like the purchase of 300 cars by Lagos state Government for a sports festival or purchase of 202 cars by NCAA.

But if it is debt to fund essential infrastructure then fine. Build Roads, Rail lines, Airports, Seaports, Power Sector, Industries, et al with debt and your economy expands giving you capacity to pay back.!

opssss

i think is better to speak for your self. u are wrong by saying all tribe..... where did you get your findings

Dangote has more debts than me but is the richest man in Africa. Your analysis is flawed sir because Debt to GDP ratio can not be analysed using a "balance sheet" approach. Many other factors need to be considered.

Meanwhile- when will Nigerians move away from this "tribe" mentality. Its the single largest cause of non-progress.

PapaBrowne:


No, you dont get it!! It simply means we can start taking debts without really having default problem. It means that very soon many financial institutions globally would start looking to dump debt on the Nigerian private sector. And I tell you it is a good thing. Look at the list of all the top debtor countries, they are well developed.

This is how it works. Lagos wants to build a light rail system but doesnt have enough money to complete it. Because our debt to GDP ration is low, an investment bank like say Goldman Sachs would think, hmmmm...not a bad idea to put some of our money on that project. So they arrange a tool and fund the project. Or Dangote wants to build a refinery and needs a loan of $5Bn. HSBC looks at our Debt to GDP ration and says wow, those guys are not going to be defaulting any time soon. They throw the money in for Dangote.

In a nutshell, Nigerians would be the beneficiaries. Debt develops countries. The kind of debt we shouldn't be taking is the ones obtained by Government to fund recurrent expenditure like the purchase of 300 cars by Lagos state Government for a sports festival or purchase of 202 cars by NCAA.

But if it is debt to fund essential infrastructure then fine. Build Roads, Rail lines, Airports, Seaports, Power Sector, Industries, et al with debt and your economy expands giving you capacity to pay back.!

Debt to GDP ratio is not what international banks look at to know who to loan to. They look at a countries credit ratings, e.g. S & P. We are currently rated BB- which implies that we are considered NON INVESTMENT GRADE SPECULATIVE. whereas America with a high debt to GDP ratio is rated AAA, the best grade possible.

The reason for this is in no way GEJ fault. In fact our ratings have improved during his tenure so he should be rightly congratulated. The true reason is because our economy is based on oil and we are still not diversified enough. If we are given a loan and the price of oil drops, we may not be able to pay up the loan. This happened in the 80's that's why our currency became so messed up.

@ abbakacici, this your English still na die
Try upgrade am for Hertfordshire now wey you dey there
Abi free language classes no dey there?

Ijebulogic: Dangote has more debts than me but is the richest man in Africa. Your analysis is flawed sir because Debt to GDP ratio can not be analysed using a "balance sheet" approach. Many other factors need to be considered.

Meanwhile- when will Nigerians move away from this "tribe" mentality. Its the single largest cause of non-progress.

ΰя counter-analysis is worse. Yu neednt use dat yu and Dangote analogy. That is un-intelligent of yu.

trillville:

Debt to GDP ratio is not what international banks look at to know who to loan to. They look at a countries credit ratings, e.g. S & P. We are currently rated BB- which implies that we are considered NON INVESTMENT GRADE SPECULATIVE. whereas America with a high debt to GDP ratio is rated AAA, the best grade possible.

Correcting dat Non-Investment Grade. It is Speculative. And also to add, Debt to GDP ratio is under accounting factors considered by these rating agencies among other factors like Governance, cashflow, financial policy, e.t.c

Useless assessment and analysis.
Are you trying to excuse a corrupt , dysfunctional ,incompetent,useless government?

1This president has increased debt from 0 to over $10 billion within 4 yrs
2Depleted the $22 billion excess crude account
3depleting the $48 billion foriegn reserve that obj left
4accumulating domestic debt
5 keeps running a deficit budget despite record oil prices
6 spending over a quarter of the budget on security without any improvement in the quality/quantity of the armed forces.
And more.

All this spending with nothing to show for it.
Algeria ,a fellow OPEC member ,has a foreign reserve of $200 billion .

PapaBrowne:


No, you dont get it!! It simply means we can start taking debts without really having default problem. It means that very soon many financial institutions globally would start looking to dump debt on the Nigerian private sector. And I tell you it is a good thing. Look at the list of all the top debtor countries, they are well developed.

This is how it works. Lagos wants to build a light rail system but doesnt have enough money to complete it. Because our debt to GDP ration is low, an investment bank like say Goldman Sachs would think, hmmmm...not a bad idea to put some of our money on that project. So they arrange a tool and fund the project. Or Dangote wants to build a refinery and needs a loan of $5Bn. HSBC looks at our Debt to GDP ration and says wow, those guys are not going to be defaulting any time soon. They throw the money in for Dangote.

In a nutshell, Nigerians would be the beneficiaries. Debt develops countries. The kind of debt we shouldn't be taking is the ones obtained by Government to fund recurrent expenditure like the purchase of 300 cars by Lagos state Government for a sports festival or purchase of 202 cars by NCAA.

But if it is debt to fund essential infrastructure then fine. Build Roads, Rail lines, Airports, Seaports, Power Sector, Industries, et al with debt and your economy expands giving you capacity to pay back.!

brilliant and exact! you just spoke my mind...you could n't have said it better, Bravo!!

bloggernaija: Useless assessment and analysis.
Are you trying to excuse a corrupt , dysfunctional ,incompetent,useless government?

1This president has increased debt from 0 to over $10 billion within 4 yrs
2Depleted the $22 billion excess crude account
3depleting the $48 billion foriegn reserve that obj left
4accumulating domestic debt
5 keeps running a deficit budget despite record oil prices
6 spending over a quarter of the budget on security without any improvement in the quality/quantity of the armed forces.
And more.

All this spending with nothing to show for it.




Algeria ,a fellow OPEC member ,has a foreign reserve of $200 billion .

you said it all,how can you inspect an investor to invest in nigeria.money is confidence,do you have confidence in nigeria??

trillville:

Debt to GDP ratio is not what international banks look at to know who to loan to. They look at a countries credit ratings, e.g. S & P. We are currently rated BB- which implies that we are considered NON INVESTMENT GRADE SPECULATIVE. whereas America with a high debt to GDP ratio is rated AAA, the best grade possible.

The reason for this is in no way GEJ fault. In fact our ratings have improved during his tenure so he should be rightly congratulated. The true reason is because our economy is based on oil and we are still not diversified enough. If we are given a loan and the price of oil drops, we may not be able to pay up the loan. This happened in the 80's that's why our currency became so messed up.

Uuuummmh......Do I really have to explain that one of the key factors used in determining credit rating is debt to GDP ratio? I don't think so.There are other factors sure, but Debt to GDP ratio is big on Standard & Poors rating criteria! And the investment banker for your info dont rely strictly on credit rating to make investments.There are many other interesting factors used especially with the shift in global geo-economics.
McKinsey for instance believes that Nigeria is one of the best places in the world to make investments for products that target young people ages 0-15 and to some extent 15-24. Why?? Because more children would be born in Nigeria over the next decade tha would be born in all of Europe combined. That means a company like Procter and Gamble would be better off investing in a diaper plant in Nigeria than in any where in Europe. My point is: other criteria beyond credit rating is factored when making investment decisions!

Ayomel: opssss

i think is better to speak for your self. u are wrong by saying all tribe..... where did you get your findings

ignore his use of the word 'tribe' you as an individual, what sayeth or thinketh thou?

Some people are good at stoking

trillville:

Debt to GDP ratio is not what international banks look at to know who to loan to. They look at a countries credit ratings, e.g. S & P. We are currently rated BB- which implies that we are considered NON INVESTMENT GRADE SPECULATIVE. whereas America with a high debt to GDP ratio is rated AAA, the best grade possible.

The reason for this is in no way GEJ fault. In fact our ratings have improved during his tenure so he should be rightly congratulated. The true reason is because our economy is based on oil and we are still not diversified enough. If we are given a loan and the price of oil drops, we may not be able to pay up the loan. This happened in the 80's that's why our currency became so messed up.

Not only that, they look at other factors too to determine if your country is suitable/friendly for investment. Nigeria is not.

kingoflag: Not only that, they look at other factors too to determine if your country is suitable/friendly for investment. Nigeria is not.

Nigeria is one of the best investment destinations in the world right now. I'm speaking as one with access to key insiders in various top investment institutions worldwide. Nigeria is hot!! Maybe I should pander to your tribal cravings and say it like this: Lagos is one of the hottest investment destinations right now. Hot! Hot Hot!! You have no idea. If you do, you will [prepare for a windfall and start taking advantage. Nigeria is on the radar globally in every investors with some appetite for risk and high returns!!


Read below:

[size=14pt]Entering Africa: where is a good place to start?[/size] BY KATE DOUGLAS | FEBRUARY 20, 2013 AT 10:28

Entering the African market can be quite a daunting task for companies looking to profit from the various opportunities that today’s and tomorrow’s Africa presents, and many have wondered where is a good place to start. With 54 diverse markets offering unique prospects and different challenges, it is a commonly held perception among Africa’s business experts and advisors that it would be foolish to look at Africa as just one market.

KPMG, a professional advisory firm with practices in 33 African countries, launched the Global Africa Project (GAP) at the end of 2011, placing Africa on KPMG’s global high growth market investment programme. According to GAP’s chief operating officer, Anthony Thunstrom, the issue on where to enter the African market is a popular one among their clients.

“It is a question we get asked almost every day and I think the answer is that it depends very much on which sector you are actually dealing with,” Thunstrom told How we made it in Africa in an interview last week. “So different countries are going to have different dynamics that are more attractive to different sectors.”

Having said that, Thunstrom has identified a number of markets that offer companies a good entry point to expand into Africa.

Nigeria: I think Nigeria for me has to be the standout as the best of the best destination in many ways,” he said.
With a population of roughly 170 million people (depending on who is doing the counting) and a growing middle class, Nigeria is a notable market for those looking to target a large consumer base in Africa. According to Thunstrom, financial sector reforms and “the fact that they are cleaning up and reforming the petroleum regulations” have also made this country an appealing market for multinational companies.
“Certainly, for a lot of sectors, I think Nigeria is extremely attractive but has a reputation as not being the easiest country to do business in, and I think that has put some people off,” he added. “But the people who have persevered there have done really well.”
Thunstrom estimates that around two-thirds of the clients he and his team are communicating with are either currently doing business in Nigeria, or are talking to their firm about how to enter the market. “So Nigeria, hands down, would be a very good starting point.”


East Africa: “If you look at it as a bloc, the East Africa Trade Bloc also has a population that is around about a 130/140 million people and it is seen as a kind of easier place to enter the market,” said Thunstrom.
He added that while it may be more perception than reality, this bloc is often viewed as being more business friendly compared to other regions on the continent, and this is very attractive to those looking to enter the African space.
“[There is] very high standards of education in many cases, great universities, access to good human capital, and excellent IT infrastructure and IT skills,” highlighted Thunstrom. “So again, depending on sector-specific stuff, it is one of the really attractive areas.”

Ghana: “As a specific country, I think Ghana comes in quite close as well,” continued Thunstrom. “The country is doing fantastically well. It’s politically stable at the moment and it gives you entry into that West African market.”
He added that it is also seen as being an easier place to do business in West Africa and allows companies access to the Nigerian market too.

Mozambique: “If you had to ask me where I would be investing nine million in the next five years, to be honest I think in many ways Mozambique would take a lot to beat as well,” said Thunstrom.
“Just the extent of development, the pace… if you actually go to Maputo and take a look at how many companies have set up, how hard it is to find accommodation, the number of multinationals that are literally looking for skilled resources from wherever they can get them.” Thunstom added that this business interest and development has been particularly prevalent in the last 12 months.
Nevertheless, whatever market a client may decide to enter into, Thunstrom stresses that they cannot do it from overseas. He also doesn’t think that the decision should be simply made after a trip to Johannesburg and a couple of meetings with advisors, no matter who they are.
“For me the single biggest piece of advice is that you need to go through those steps to kind of narrow down your focus, but before you even seriously contemplate any particular investment or locking into a strategy you actually have to get on a plane and go and spend some time and immerse yourself in the economies you are looking at,” he stressed. “You will very, very quickly get a sense to whether it’s the place that suits your business, whether you are going to be comfortable doing business there, and it allows you to start meeting the people that you are going to have to be doing business with.”

Linked to that, Thunstrom said that companies entering a new market in Africa should consider finding a local business partner. “In many cases early success has something to do with finding a local business partner; somebody who really understands the local economy, particularly if you have never done business in Africa before… Down the line you might end up setting up your own 100% owned companies but it’s difficult to do that if you are sitting on another continent and you don’t have the oversight of what’s going on in a particular country – typically a lot easier to do it if you have a business partner on the ground who you can trust.”

http://www.howwemadeitinafrica.com/?post_type=post&p=24413

PapaBrowne:

Nigeria is one of the best investment destinations in the world right now. I'm speaking as one with access to key insiders in various top investment institutions worldwide. Nigeria is hot!! Maybe I should pander to your tribal cravings and say it like this: Lagos is one of the hottest investment destinations right now. Hot! Hot Hot!! You have no idea. If you do, you will [prepare for a windfall and start taking advantage. Nigeria is on the radar globally in every investors with some appetite for risk and high returns!!

]

You always come across as a dummy, but, you wanna bet that youve got absolutely no idea where the Nigerian side of my family is from?

Nigeria is hot?! Says GEJ or world institutions? Truth is Nigeria still has a loooong way to go to put in place institutions necessary for a safe investment environment. You can keep deceiving yourself if you want, it wont be the first time.

Bros, what is our total debt, external + internal. I have searched on the internet and I found that to be $44bn and that translates to about 20%.