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|Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by Vickysnipe147(m): 1:51am On Jul 06, 2017|
The financial condition of Africa’s largest economy is not getting better anytime soon, as Nigerian Government had to borrow about $11.44 billion (N3.5 trillion) to run its government since 2015.
This information was disclosed by the Debt Management Office (DMO) on Tuesday, July 4, 2017, in its response to the request for debts status of the country by a local Newspaper, The Punch .
In the response which was signed by Director, Policy, Strategy and Risk Management Department, DMO, Mr Joe Ugoala , the government was stated to have borrowed this amount between June 2015 and March 2017 to finance budget deficits.
“In the case of domestic borrowing, kindly be informed that funds raised through the issuance of FGN securities in the domestic capital market are remitted into a pool – the Consolidated Revenue Fund Account maintained in the Central Bank of Nigeria for the purpose of funding the appropriated budget deficit."
“It is important to note that these borrowings from both external and domestic sources are mainly used to fund development of infrastructure and human capital in the various sectors of the economy, as listed in the appropriation acts,” the statement reads in part.
The information further noted that foreign components of the country’s debts are tied to specific projects. Domestic debts are stated to be warehoused into the Nation’s Consolidated Revenue Fund Accounts used for funding deficits in the budget, one which includes recurrent expenditure.
The nation’s domestic debt stood at N19.16tn as of March 31, 2017, of which N8.18tn (68.31%) are collected through FGN Bonds , Treasury bills accounted for N3.6tn (30.08%), Treasury bonds N190.99bn (1.6%) and the recently introduced
FGN savings bonds accounting for N2.07bn (0.02%).
This information showed Nigeria stockpiled about 58.8% of total debts between 2015 and 2017. As at March 31, 2015, Nigeria’s total debts were estimated at $41.18 billion (N12.06 trillion)
The recent downfall in the global oil price, the Federal government has been using many instruments such as FGN Bonds, treasury bills, treasury bonds and the recently developed FGN savings bond to borrow from the domestic debt market on a monthly basis.
With this, it means the debts status of the country would be on the upward trend.
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by modelmike7(m): 1:55am On Jul 06, 2017|
It is well.
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by chukxie(m): 2:11am On Jul 06, 2017|
This is what you get when stealing and unconcealed corruption is the other of the day. Walahi, the person /people wey curse Nigeria strong.
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by Nobody: 3:50am On Jul 06, 2017|
Wawuu...where them Voltrons and BMCs when you need them?
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by seunlayi(m): 4:21am On Jul 06, 2017|
2019 though near seems far, we need to use broom to sweep some people out
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by ZZ22: 4:21am On Jul 06, 2017|
Meanwhile nobody has been nailed for the $43m found in osborne towers. This government of the more you look the less you see is really fighting corruption
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by GMBuhari: 5:24am On Jul 06, 2017|
Crude at $50/ Barrel ,
PDP thieves looted the treasury
Running the country is harder than ever
Future looks bleak as price of crude will likely fall again
Buhari arresting looters and recovering monies is the enemy of state
He's awa pipu chanters are the first to scream marginalization and recession
God has helped Nigeria , it remains for us to accept it
and i mean a certain group of People
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by OrestesDante(m): 5:52am On Jul 06, 2017|
Ehn But who are those borrowing us money?
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by Izonpikin: 5:54am On Jul 06, 2017|
GMBuhari:are you still on this charade
Have you benefited from parts of the money borrowed..are you high
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by raker300: 5:59am On Jul 06, 2017|
Out of all that money they paid pple like sarki 50k to come here and sing praises to them
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by sean1000x: 6:01am On Jul 06, 2017|
Afonjas and Hausa-Fulani led government destroying this country; scattering everything left and right like a baby...have you ever arranged a room, only to come back in 10mins to see that your baby have scattered everything, and you shake your head....SMH!
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by sinistermind(m): 6:13am On Jul 06, 2017|
One question comes to mind, aren't we generating any revenue? $11billion within 2 years? WAWU!!! When Fayose said this govt is borrowing our future away, Nigerians attacked him. Very soon these people wey Nigeria deh owe will come n claim Nigeria
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by Nobody: 6:18am On Jul 06, 2017|
Yes, it isn't surprising.
In 2013, oil was above $100 per barrel. Now it is below $50.
And since oil is our major source of income, the revenues to the treasury are falling. As a result...we have to BORROW....or else we would end up skipping salaries and what not.
And let's be frank....what we have borrowed isn't even enough for our economy. For example, we need $100billion in extra spending every year for 3 years to get power 24/7. We also need far more money for all sorts of things.
It would have made a lot of sense if we had used our oil revenues to spend a lot on making Nigeria a manufacturer and exporter of finished goods...at high profits...which in turn would have attracted more investors. But we did not do that...especially when oil prcies were sky high in the 1970's and in 2009-14.Because it is far more easy to import stuff than to make them.
For now, what we should be doing (instead of waiting for oil to rise again, like this government seems to be doing) is to get heavy foreign loans to spend on fixing power and improving public transport. We should also raise taxes, especially on the rich, and remove all forms of subsidies, especially oil subsidy so that we can free up more money for investment in our oil sector. We may end up going through some tight austerity...but at the end of the day, we may emerge stronger....whether as a United Nigeria...or apart.
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by temptnow: 6:19am On Jul 06, 2017|
Buhari don use Nigeria Future do MMM.
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by mightyhazell: 6:20am On Jul 06, 2017|
Buhari is a disaster!
That man has finished us!
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by mightyhazell: 6:24am On Jul 06, 2017|
GMBuhari:u can do better than dis na haba. U goin soft or what?
We need bigger conspiracy theories from ur types to knock us out from time to time. We need to laff real harder in this recession,...helps to keep one's blood pressures in check.
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by Nobody: 6:30am On Jul 06, 2017|
Thing is, we are not generating as much revenue as we ought to.
1.Oil prices have fallen drastically. In 2013...it was $100 per barrel.Now it is $50 per barrel. That's a marked drop in revenue.
2.Yes, we are recovering looted funds. But most of it is still tied up in court cases. Until those cases are resloved....we cannot use that money.
3.$11bn might seem like a lot of money....until you realise that it is just N3.5 trillion naira....and that we need ten times that amount to fix our power sector fully (according to a 2013 report on the Power sector that formed the basis of the privatisaiton of power back then). Add the fact that in 2009...universites were promised that same amount in extra spending.....which in 2013...govt told them that they could not fund that amount.(That's when oil prices were high).
4.Nigeria isn't, ....well hasn't been running a proper economy since independence. We sell raw materials to European countries and Asian countries who in turn use it to manufacture products that they export for higher profits than what we earn from selling the raw materials. Someting as simple as cocoa can be used to make all sorts of products ....which can be sold for much higher profits . We were going to develop that kind of economy once upon a time (hence the 1970's National Development Plans, the Vision 2010 and now 2020)..but we decided that it was much better to keepon exporting raw materials....for far less than what we would have gotten if we turned them into high grade finshed products.
At the end of the day...we cheat ourselves by getting less money than ususal
5.Most Nigerians don't pay taxes. Most Nigerians don't pay bills. One big reason why we do not have power....is because most Nigerians think that they should get power for free....and that mentality has been there for generations. As a result...our power sector is chronically starved of funds. Then our resource dependent society means that power isn not that important to our revenue generating capacity (getting crude oil out of the ground does not need a steady source of public power supply....as does mining too)...so as a result...we suffer ourselves more.
In short...we are not earning enough revenue as we should. And whatever revenue we earn is squandered on sharing in the name of naitonal cake economics...which leads to fighting and talk of 'restructuring' and 'secession'.
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by sultaan(m): 2:34pm On Jul 06, 2017|
At $640m a month budget deficit and a stable or declining revenue stream such spending is not sustainable.
Current debt portfolio of $41bn puts the country right back where we were in 1999 when it comes to income and liabilities, but the expenditure has gone through the roof.
In 2 years at this rate the country will be looking at austerity measures
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by baralatie(m): 2:38pm On Jul 06, 2017|
|Re: Nigeria Borrowed $11.44 Billion To Run The Government In 18 Months by baralatie(m): 2:40pm On Jul 06, 2017|
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