Written by Odidison Omankhanlen- Lagos
Thursday, December 27, 2012





THERE is apparently major disagreement between the managers of the country’s monetary and fiscal policies over rising debt profile.

While the Central Bank of Nigeria (CBN) Governor, Lamido Sanusi, warned of the danger of accumulating more debts for future generations, the Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, said there was no cause for alarm as the current loans are not from the Paris Club, which comes with purely commercial interest rates but are highly concessional loans with long periods of maturity.

According to her, the country was doing well in terms of its debt to Gross Domestic Product (GDP) ratio, now at 17 per cent, but warned that the country should not go beyond the 25-30 per cent sealing it had set for itself.

On the other hand, the Director General, Debt Management Office (DMO), Dr Abraham Nwankwo, said Nigeria will continue to borrow, stressing that every country in the world borrows; even the most financially prudent countries like Germany, United States and others borrow.

He even confirmed that the Federal Government would still borrow more money in 2013.

Speaking at the 13th session of the Honorary International Investments Council (HIIC) meeting in London recently, Sanusi urged the Federal Government not to allow the present and unborn generations inherit the heavy burden of foreign debts cautioning that Nigeria, currently under the suppressing weight of the heavy burden of foreign debts is in great danger.

“We are borrowing more money today at a higher interest rate while leaving the heavy debt burden for our children and grandchildren. For example, if you receive your salary and everyday the money is not enough, you have two options to adjust yourself. Either check your expenditure or check your wages,” he counselled.

He urged the ruling class and the older generations to set good example and educate the coming generations for a better and secured future, stating that such example should be set by not accumulating debt for future generations to inherit.

According to DMO, the country’s external debt profile as of September 30, 2012 was $6.2 billion, while domestic debt was standing at N6.3trillion. It also stated that the debt sustainability indicators showed that the country’s debt stock was sustainable.

It also said the country’s total debt profile might hit $25 billion by 2015, adding that the debt gross domestic product (GDP) ratio was 18.65 per cent, as against global ratio of 40 per cent.

The DMO Director General further said: “for 2012, Nigeria’s external debt is projected at $9,021.53 billion; 2013, $12,165.10 billion; 2014, $14,585 billion and 2015, $16,765 billion, adding that “a breakdown for domestic debt is projected at, for 2012, $6,483.81 billion; 2013, $7,125.93 billion; 2014, $7,792.41 billion and 2015, $8, 4441.86 billion.”

hypeman: However, what's the point of borrowing and accumulating more debt when there's absolutely nothing to show for it - except her pig-like fat lips These clowns will run an already poor country into the ground with their wastefulness... Paris club or China/BRIC - what difference does it make? Isn't this the same woman who committed the greatest financial blunder in history by paying off a debt that we shouldn't have been paid off in the first place?? She's a fraud!!

This woman exemplifies why education, overly-stacked CV, and experience are somewhat overrated...

J12: She's right. Even the US states has a huge debt profile. Liquidity is all that matters.

Ikengawo:
pigs don't have lips.

She's the reason Nigeria's debt was forgiven in the first place. Educate yourself.

hypeman: However, what's the point of borrowing and accumulating more debt when there's absolutely nothing to show for it - except her pig-like fat lips These clowns will run an already poor country into the ground with their wastefulness... Paris club or China/BRIC - what difference does it make? Isn't this the same woman who committed the greatest financial blunder in history by paying off a debt that we shouldn't have been paid off in the first place?? She's a fraud!!

This woman exemplifies why education, overly-stacked CV, and experience are somewhat overrated...

hypeman:

At least the US has a lot to show for it -

J12:

How?

Okonjo Iweala was around when OBJ cleared this debt. What is going on this time, i taya.

J12: She's right. Even the US states has a huge debt profile. Liquidity is all that matters.

hypeman:

How??

Can you compare the infrastructures, economy etc. of the US to Nigeria??

J12:

She's been at the highest level of financial management for up to ten years(nationally and internationally). I don't think any other financial manager can perform better than her.

hypeman:

How??

Can you compare the infrastructures, economy etc. of the US to Nigeria??

yertyr: This woman is lost... Borrowin is no longer a problem cos top countries borrow abi? How can u justify our debts lyk dat? Sanusi said it all; our constitution is killin us.constitution where government has domant offices eg. Special advicer, Asst.special advicer,snr advicer to asst and the list is endless.ppl workin in these offices are to be paid o.then why won't we borrow? Wen government wastes revenue on itself instead of life-improvin projects? Also...GEJ told us dat one of his reason of d subsidy wahala was to check debts...y no improvement? Smh *takes a spoonful of garri* (make I enjoy my xmas ni)

Billyonaire: When 2 economic Titans challenge each other, who should I support ? Common sense tells me to cut my coat according to my size. Another reason is that funds borrowed might even end up in a wrong purse. I agree with SLS on this. We should stop borrowing.

victorazy: I WILL NEVER BLAME SANUSI FOR ANYTHING, HE IS ACCOMPLISHING A TASK, RATHER I WILL BLAME THE MMORON WE HAVE AS PRESIDENT THAT APPOINTED HIM TO THAT SENSITIVE POSITION KNOWING FULLY WHAT HE CAN DO.

J12: She's right. Even the US states has a huge debt profile. Liquidity is all that matters.

victorazy: I WILL NEVER BLAME SANUSI FOR ANYTHING, HE IS ACCOMPLISHING A TASK, RATHER I WILL BLAME THE MMORON WE HAVE AS PRESIDENT THAT APPOINTED HIM TO THAT SENSITIVE POSITION KNOWING FULLY WHAT HE CAN DO.