T051N:
.. I don't know much about finance but what I know is this, The IMF we've been borrowing from, Please to what end? To borrow us 5Naira and collect 50,000 as interest.? America and the whole of Europe are just giving us packaged format and scamming us.Lets not even start to compare economies. America's glorified i-phone is made where?

Exactly the reason they pirated Buhari in 1985 they saw he was financially disciplined and will not tow the line of his previous corrupt regime.

If anyone follow PMBs body language in the early part of his coming to power he has consistently ignore the world bank and IMF. Same way he ignore the IMF in 1985. Even their cooked up statistics are being ignored.

gurnam:


What exactly did you “professor” say? Let us know, we want to learn from his fountain of knowledge

I'm sure it won't be different from this.


It's funny to see Nigerians applaud this Somoye guy simply because they felt mesmerized by the figures he's throwing. I know Nigerians hate mathematics and figures but at least common sense and basic principle would make the obvious more obvious.
Admittedly, lack of political conditionalities and supervision (if true) of utilization of the loans is a good thing. But that's just about the only good thing about Chinese loans BASED ON THE FIGURES POSTED IN THIS ARGUMENT. The key features of a good loan shows that IDA is a far better option than the Chinese loans.
The primary features of "better" loan lie in the INTEREST RATE and DURATION OF PAYMENT.
1.INTEREST RATE: Chinese 2-3 (or 3.6)%; IDA 1.25%. which is better? IDA of course. If you doubt it, I would ask you a question: if you're taking a loan would you go for a higher interest rate? I bet you won't.
2. Duration of payment: Chinese 12years, IDA 38years. which is better? IDA of course. In your personal loan I'm sure you prefer longer duration for easy payment.
NOW THE ARITHMETIC FIGURES.
He calculated a total Interest rate for Chinese loans for 12years as 43.2% (3.6x12).
Then IDA loan for 38years as 47.5% (1.25x38). If FG can payoff Chinese loans in 12 years, nothing stops them from paying off IDA loan in 12 years (NOBODY SAYS YOU CAN'T OFFSET YOUR LOAN EARLIER). Based on his calculation of "total interest rate", IDA loan for 12 years gives 15% (1.25x12). So by his own calculation, given the same duration of payment, IDA is still by far the "BETTER LOAN".
If this is your personal loan, I'm 100% certain you will prefer a loan that gives you CHEAPER INTEREST RATE and LONGER DURATION. (Even the Chinese if they can, would take IDA loan and lend it to Africa @Chinese rate and make some profit for themselves.....this is how banks make money if you know). I don't see how this appears like rocket science because it's on twitter but I understand Nigerians and basic mathematics are enemies.
NB: His calculated figures are FUNDAMENTALLY FAULTY as Yearly Interest is calculated from Balance for each Year and not from initial capital. So his arithmetically calculated total INTEREST RATE is misleading. Total interest rate of what, original capital? Absurd. But I don't want to delve into that for now unless someone asks for it. I'm sure that's why Madam Oby left him alone with his glorified ignorance well exposed on twitter.
Ignorance is a disease. Ignorance one is unaware of is incurable.

studentofTruth:
It's funny to see Nigerians applaud this Somoye guy simply because they felt mesmerized by the figures he's throwing. I know Nigerians hate mathematics and figures but at least common sense and basic principle would make the obvious more obvious.
Admittedly, lack of political conditionalities and supervision (if true) of utilization of the loans is a good thing. But that's just about the only good thing about Chinese loans BASED ON THE FIGURES POSTED IN THIS ARGUMENT. The key features of a good loan shows that IDA is a far better option than the Chinese loans.
The primary features of "better" loan lie in the INTEREST RATE and DURATION OF PAYMENT.
1.INTEREST RATE: Chinese 2-3 (or 3.6)%; IDA 1.25%. which is better? IDA of course. If you doubt it, I would ask you a question: if you're taking a loan would you go for a higher interest rate? I bet you won't.
2. Duration of payment: Chinese 12years, IDA 38years. which is better? IDA of course. In your personal loan I'm sure you prefer longer duration for easy payment.
NOW THE ARITHMETIC FIGURES.
He calculated a total Interest rate for Chinese loans for 12years as 43.2% (3.6x12).
Then IDA loan for 38years as 47.5% (1.25x38). If FG can payoff Chinese loans in 12 years, nothing stops them from paying off IDA loan in 12 years (NOBODY SAYS YOU CAN'T OFFSET YOUR LOAN EARLIER). Based on his calculation of "total interest rate", IDA loan for 12 years gives 15% (1.25x12). So by his own calculation, given the same duration of payment, IDA is still by far the "BETTER LOAN".
If this is your personal loan, I'm 100% certain you will prefer a loan that gives you CHEAPER INTEREST RATE and LONGER DURATION. (Even the Chinese if they can, would take IDA loan and lend it to Africa @Chinese rate and make some profit for themselves.....this is how banks make money if you know). I don't see how this appears like rocket science because it's on twitter but I understand Nigerians and basic mathematics are enemies.
NB: His calculated figures are FUNDAMENTALLY FAULTY as Yearly Interest is calculated from Balance for each Year and not from initial capital. So his arithmetically calculated total INTEREST RATE is misleading. Total interest rate of what, original capital? Absurd. But I don't want to delve into that for now unless someone asks for it. I'm sure that's why Madam Oby left him alone with his glorified ignorance well exposed on twitter.


Ignorance is a disease. Ignorance you're unaware of is incurable.

deepwater here is an intellectually sound argument...you can take a cue from this poster.

mikkyjay:

Going by this I think your tribe is the bitter and backward one, you are the first to attack her entire tribe because you think she is wrong.
How backward and senseless!

it seems you are new in this forum,this is there modus operandi,they Yorubas are always first to call out igbos and when you give them what they deserve,the start shouting 'your people are so hateful',they cant stand a single discussion without calling out the igbos.
I see it as a sign of weakness and lack of intellectual grit,an intellectual discussion is going on,rather than present superior arguement,they are shouting igbos up and down. And ofcourse, trust igbo lads,they will always give them what the deserve.

jomoh:
Former World bank economist and Vice President in Africa, Obi ezekwesili got schooled on Twitter today.

The issue there is that I had already detect one grammatical blunder from Somoye. Pls can somebody tell me what is plummeting. In my dictionary, there is no word like that. All I can see is plummet which does not realm with the sentence at all.

jomoh:


No one is a fool here and they recognize the fact that one has to be weary of the Chinese loan but here are the real point the guy made to counter your Aunty you’re so much willing to lick her behind.

1. The only pitfall with Chinese loans is when you’re unable to pay back they takeover the project as their own(has happened in some other African countries) however, the infrastructure has been put in place and they won’t remove it.

2. The West don’t care if you use the loan for the purpose it is meant for. They don’t care if the money is embezzled or not. That is why they keep giving loans to corrupt regime of GEJ because they more you embezzle the more you’re unable to pay and the more enslaved you become.

3. The Chinese don’t deal with thieves, they put their money where their mouth is and make sure the loans are used for the purpose they’re meant for.

4. This is the most dangerous part of the western loan. The Chinese don’t require the government to retrench its civil Servants when they default or are unable to pay up. The West on the other hand as part of its loan conditions will require the government to retrench Ita civil servants.

The bottom line is that, everyone recognize that China is not Santa Claus but their intention is far more genuine and open than the west’s. Even the west recognize this and they fear China taking over but with lesser or no intention to enslave that is why they’ve being in a panick mode since the China-Africa summit.

They know their milking cows are about to be set free. If not when was the last time a British PM or a German chancellor or French President visited Africa let alone in the same year.

Unfortunately for them and fortunately for Africa, their leader(the US) is under the leadership of a mad man.

u really deserved a drink for this from me
bravo

obimag:
Why avoiding the market reform Oby posted which would have given Nigerian Companies a big space to participate in the infrastructural projects.

I’m not interested in the reforms of a Seudo-CIA spy. Economic reforms are after the loans had being utilized for what it is meant for. Economic reforms won’t bring the money needed for infrastructure. It will only help to ensure the infrastructure built are properly utilized.

The question is will there be economic reforms without infrastructure. The West will give you loans for infrastructure despite knowing that a large chunk of it will be embezzled and they will still ask you to rechrench you civil servants when you’re unable to pay. Is that not double suffering. They won’t stop there, they will start giving you all sorts of reasons backed by cooked up statistics on why you need to devalue your currency which will make you continue to be their slave.

African leaders are not much disciplined and most are corrupt. China recognize this and won’t give room for that.

Go and read the book “diary of an economic hitman”. You can download it online. You will know that NOI and Obi are enemies of the state. They are CIA operatives with or without even them knowing.

PMB knows this that is why he bluntly refused all their pleas to keep devaluing he Naira.

SIRTee15:


Forget it, African political leaders lack fiscal discipline n are financially reckless.....
Those loans will never be paid back.....
Check the budgetary implementation of most African countries n u will realise majority depends on western freebies called aids to balance the book....
Presently, China is willing to loan simply because they want the excess dollar within their economy to go out....
This is to prevent their own economy heating up and causing inflation or yuan revaluation....
This will not be forever.....
One day, they will come calling for their loan...
China owes africa nothing, bears no moral burden and has no troubling guilty conscience towards Africans.. ...
They will make sure they get their money back in both cash n kind....
Their target will be our natural resources- most African countries will be forced to lease their resources to the Chinese for donkey years....
Another possibility is taking over prized assets within debtors' economy.....
Overall, Africans inability to be self dependent n be disciplined will be it's bane, not any loan from either west or the east....

they are feeding on d vunerability of dis black ediots n most ediots are here defending n praising it..they know d kind of unrepentent monkeys this ediots have in their helm of affairs , n wld throw d banana to draw d heartless n clueless rouges, who dnt care...the question is, wld dis ediots eva payback?, or have they ever paid a dime in d past b4.,. China is only putting up a disguised shapper end of d knife...wen dis youths on twitter n nairaland should be thinking of gathering their politicians n leaders from past to present to a panel, from there to u blackmaria or prolly frying they up.., not seeing d damage they do n are still grossly perpetrating deep n heartlessly dirty with reckless abandon, mixed with warp wickedness.....

studentofTruth:


I'm sure it won't be different from this.


It's funny to see Nigerians applaud this Somoye guy simply because they felt mesmerized by the figures he's throwing. I know Nigerians hate mathematics and figures but at least common sense and basic principle would make the obvious more obvious.
Admittedly, lack of political conditionalities and supervision (if true) of utilization of the loans is a good thing. But that's just about the only good thing about Chinese loans BASED ON THE FIGURES POSTED IN THIS ARGUMENT. The key features of a good loan shows that IDA is a far better option than the Chinese loans.
The primary features of "better" loan lie in the INTEREST RATE and DURATION OF PAYMENT.
1.INTEREST RATE: Chinese 2-3 (or 3.6)%; IDA 1.25%. which is better? IDA of course. If you doubt it, I would ask you a question: if you're taking a loan would you go for a higher interest rate? I bet you won't.
2. Duration of payment: Chinese 12years, IDA 38years. which is better? IDA of course. In your personal loan I'm sure you prefer longer duration for easy payment.
NOW THE ARITHMETIC FIGURES.
He calculated a total Interest rate for Chinese loans for 12years as 43.2% (3.6x12).
Then IDA loan for 38years as 47.5% (1.25x38). If FG can payoff Chinese loans in 12 years, nothing stops them from paying off IDA loan in 12 years (NOBODY SAYS YOU CAN'T OFFSET YOUR LOAN EARLIER). Based on his calculation of "total interest rate", IDA loan for 12 years gives 15% (1.25x12). So by his own calculation, given the same duration of payment, IDA is still by far the "BETTER LOAN".
If this is your personal loan, I'm 100% certain you will prefer a loan that gives you CHEAPER INTEREST RATE and LONGER DURATION. (Even the Chinese if they can, would take IDA loan and lend it to Africa @Chinese rate and make some profit for themselves.....this is how banks make money if you know). I don't see how this appears like rocket science because it's on twitter but I understand Nigerians and basic mathematics are enemies.
NB: His calculated figures are FUNDAMENTALLY FAULTY as Yearly Interest is calculated from Balance for each Year and not from initial capital. So his arithmetically calculated total INTEREST RATE is misleading. Total interest rate of what, original capital? Absurd. But I don't want to delve into that for now unless someone asks for it. I'm sure that's why Madam Oby left him alone with his glorified ignorance well exposed on twitter.
Ignorance is a disease. Ignorance one is unaware of is incurable.

No mind them o

chronique:


So a loan with a 12 years maturity that cumulatively adds up to 43.2% is better than that of a 38 years maturity window and cumulatively adds up to 47.5%? Some of you have no business being in business or discussing anything finance.

12 years is enough for any serious government especially a country with our own population to booth.

38 years is to prolong your suffering. By the time you finish paying the loan of 38years on an infrastructure, the structure is already out of tune then you’re to go back to them to request for another loan to build a modern one.

Let us pay it up in 12 years and forget about the loan.

I believe borrowing from China via concessions and visiting their prime minister is a spend thrift. Ill illustrate with this sector. We want out train stations working right? All the president has to do is great laws that allow private participation in railway operations and regulate the sector. Now the private transporter tycoons would come together and if need be (depending on fg position) rally round and look for funds from anywhere in the world thereby taking over the debt burden. The only disadvantage is the services will be pretty expensive at first but with competition itll cone down. The private companies will go looking for the Chinese and whoever is interested. The fg on the other hand will simply watch and keep regulating while making profit. This penchant for socialism by buhari isnt feasible woth nigerians. Moreover a concession means the Chinese engineers can build infrastructures that would last exactly how long their concession is active once they leave theres a possibility these structures will start collapsing. It's still better.

gurnam:


What exactly did you “professor” say? Let us know, we want to learn from his fountain of knowledge

someone as bright as you are should do what I did because someone that's not bright like me cannot be educating a bright chap like you. well done sir

Madam Oby is IMF trained,she will prefer the USA controlled body to give loans to Nigeria than a competitor from China

jomoh:



12 years is enough for any serious government especially a country with our own population to booth.

38 years is to prolong your suffering. By the time you finish paying the loan of 38years on an infrastructure, the structure is already out of tune then you’re to go back to them to request for another loan to build a modern one.

Let us pay it up in 12 years and forget about the loan.

In taking loans, NOBODY STOPS YOU FROM PAYING OFF YOUR LOANS EARLIER. It's your choice when to offset your loan provided it doesn't exceed the deadline.

As far as principles of finance is concerned, IDA loan is a better one. IDA paid off in 12years still gives you much better "total interest rate" as used by the somoye guy.

jomoh:



12 years is enough for any serious government especially a country with our own population to booth.

38 years is to prolong your suffering. By the time you finish paying the loan of 38years on an infrastructure, the structure is already out of tune then you’re to go back to them to request for another loan to build a modern one.

Let us pay it up in 12 years and forget about the loan.

n u think ur current politicians n leaders can do that?...i laff in spanish..the problem is not the debts, the problem is with those charged with recieving and handling it...

studentofTruth:
It's funny to see Nigerians applaud this Somoye guy simply because they felt mesmerized by the figures he's throwing. I know Nigerians hate mathematics and figures but at least common sense and basic principle would make the obvious more obvious.
Admittedly, lack of political conditionalities and supervision (if true) of utilization of the loans is a good thing. But that's just about the only good thing about Chinese loans BASED ON THE FIGURES POSTED IN THIS ARGUMENT. The key features of a good loan shows that IDA is a far better option than the Chinese loans.
The primary features of "better" loan lie in the INTEREST RATE and DURATION OF PAYMENT.
1.INTEREST RATE: Chinese 2-3 (or 3.6)%; IDA 1.25%. which is better? IDA of course. If you doubt it, I would ask you a question: if you're taking a loan would you go for a higher interest rate? I bet you won't.
2. Duration of payment: Chinese 12years, IDA 38years. which is better? IDA of course. In your personal loan I'm sure you prefer longer duration for easy payment.
NOW THE ARITHMETIC FIGURES.
He calculated a total Interest rate for Chinese loans for 12years as 43.2% (3.6x12).
Then IDA loan for 38years as 47.5% (1.25x38). If FG can payoff Chinese loans in 12 years, nothing stops them from paying off IDA loan in 12 years (NOBODY SAYS YOU CAN'T OFFSET YOUR LOAN EARLIER). Based on his calculation of "total interest rate", IDA loan for 12 years gives 15% (1.25x12). So by his own calculation, given the same duration of payment, IDA is still by far the "BETTER LOAN".
If this is your personal loan, I'm 100% certain you will prefer a loan that gives you CHEAPER INTEREST RATE and LONGER DURATION. (Even the Chinese if they can, would take IDA loan and lend it to Africa @Chinese rate and make some profit for themselves.....this is how banks make money if you know). I don't see how this appears like rocket science because it's on twitter but I understand Nigerians and basic mathematics are enemies.
NB: His calculated figures are FUNDAMENTALLY FAULTY as Yearly Interest is calculated from Balance for each Year and not from initial capital. So his arithmetically calculated total INTEREST RATE is misleading. Total interest rate of what, original capital? Absurd. But I don't want to delve into that for now unless someone asks for it. I'm sure that's why Madam Oby left him alone with his glorified ignorance well exposed on twitter.


Ignorance is a disease. Ignorance you're unaware of is incurable.

Bro you’ve gotten the whole point wrong.

The longer the term of your loan agreement the lesser your interest rate. So do go and do that simple arithmetic on loan interest rates. The shorter the term of loan agreement the higher the interest rates.

IDA “could” be a far better loan when it is utilized for what it is meant for but in Africa it is not so we all know it won’t be utilized. The West knows this.

China loan is also better because they are self liquidating loans. No need to panick as long as the infrastructure is well utilised. We have a population of over 180million. We secured a loan of $6billion with interest of 43% that’s about $9billion(3.6trillion) or less in total repayment.

Are you saying with our population we can’t generate more than 3.6trillion in 12years directly from the infrastructure.

The problem is not how to pay back cos it’s a self liquidating loan.

The problem is getting the infrastructure in place. The western loan do not guarantee the utilization of the loan but the China loan does. Once the infrastructure is in place it can pay off itself.

revolt:
I believe borrowing from China via concessions and visiting their prime minister is a spend thrift. Ill illustrate with this sector. We want out train stations working right? All the president has to do is great laws that allow private participation in railway operations and regulate the sector. Now the private transporter tycoons would come together and if need be (depending on fg position) rally round and look for funds from anywhere in the world thereby taking over the debt burden. The only disadvantage is the services will be pretty expensive at first but with competition itll cone down. The private companies will go looking for the Chinese and whoever is interested. The fg on the other hand will simply watch and keep regulating while making profit. This penchant for socialism by buhari isnt feasible woth nigerians. Moreover a concession means the Chinese engineers can build infrastructures that would last exactly how long their concession is active once they leave theres a possibility these structures will start collapsing. It's still better.

You made sense. Similar to what Obj did in Telecom. No rocket science. Nigeria ain't ready yet. when they are, we will know

troublemakea:


Lmao

as funny as you'd sound but you'd do hv a strong point tho nice one bro kip it up

Thanks bro

7lives:


Good morning Sir, you are the smartest Nigerian I've met on this forum.
Most people on this forum don't even know that the West is the POWER behind the heavy stealing going in Nigeria.
The money they borrow us, is it not the same money stolen from Nigeria?, to rub it in, they will also attach inhuman conditionalities, all kinds of austerity measures like SAP and so on.
People don't KNOW that the West will prefer a financially reckless government in any third world country, to a prudent and highly focused one.
They will not help Nigeria and if we are not careful, they will sabotage our efforts at getting help elsewhere.
These are the people that Nigerians praise to high heavens, due to high moral, intellectual and spiritual bankruptcy.

Exactly mr Bro. Couldn’t have said it better.

Highly educative
Oby fat lips Ezekwesili don loose guard..
Unfortunately instablog nor dey carry this kind news.

One thing he got wrong was that Naira plummeted after buhari was ousted.



Naira depreciated when Buhari became president the 1st time

I see this oby going international very soon just like okonji iwella. She's very correct with that assertion, "we need to put feets of our leaders to fire to execute and articulate market reforms like China did and grow"

jomoh:


Bro you’ve gotten the whole point wrong.

The longer the term of your loan agreement the lesser your interest rate. So do go and do that simple arithmetic on loan interest rates. The shorter the term of loan agreement the higher the interest rates.

IDA “could” be a far better loan when it is utilized for what it is meant for but in Africa it is not so we all know it won’t be utilized. The West knows this.

China loan is also better because they are self liquidating loans. No need to panick as long as the infrastructure is well utilised. We have a population of over 180million. We secured a loan of $6billion with interest of 43% that’s about $9billion(3.6trillion) or less in total repayment.

Are you saying with our population we can’t generate more than 3.6trillion in 12years directly from the infrastructure.

The problem is not how to pay back cos it’s a self liquidating loan.

The problem is getting the infrastructure in place. The western loan do not guarantee the utilization of the loan but the China loan does. Once the infrastructure is in place it can pay off itself.

See my dear nobody stops you from offsetting your debt earlier. it's all up to you the borrower.
Now you have come to the Real Issue, UTILIZATION. That's is a problem with the borrower and not the loan itself. It's for the borrower to get himself together and do the needful.

studentofTruth:


In taking loans, NOBODY STOPS YOU FROM PAYING OFF YOUR LOANS EARLIER. It's your choice when to offset your loan provided it doesn't exceed the deadline.

As far as principles of finance is concerned, IDA loan is a better one. IDA paid off in 12years still gives you much better "total interest rate" as used by the somoye guy.

But how do you pay off a loan that has been embezzled.

That is the difference between the Chinese loan and the western loan.

The West don’t care if you have the infrastructure in place or not, they want their money back from any means. And they will even ask you to devalue your currency and retrench your civil servants.

The Chinese loan is self liquidating which means no infrastructure no liquidation, no loan repayment.

At this point in our national life, the interest rate is not our issue but getting the infrastructure in place. We have the population to pay back the loan.

jomoh:


But how do you pay off a loan that has been embezzled.

That is the difference between the Chinese loan and the western loan.

The West don’t care if you have the infrastructure in place or not, they want their money back from any means. And they will even ask you to devalue your currency and retrench your civil servants.

The Chinese loan is self liquidating which means no infrastructure no liquidation, no loan repayment.

At this point in our national life, the interest rate is not our issue but getting the infrastructure in place. We have the population to pay back the loan.

is it the lender that embezzled it?
Beware of Chinese gifts. After the 12years, who maintains the infrastructure? Will you be sure of the quality after the 12 years?

Yea @ Infrastructure. How much loan did Obj take to get the Telecom we're enjoying now. Do the needful and the market will take care of the rest.

YorubaMuslims:




Don't mind them, when Oby was campaigning for Buhari, she was not Igbo

Abi. Their selectivism of memory would have been hilarious if not for the possible dangerous consequences. Terrible humans.

jomoh:



12 years is enough for any serious government especially a country with our own population to booth.

38 years is to prolong your suffering. By the time you finish paying the loan of 38years on an infrastructure, the structure is already out of tune then you’re to go back to them to request for another loan to build a modern one.

Let us pay it up in 12 years and forget about the loan.

if you are a business person,you'd understand why the 38 yrs option is better. it doesn't mean you must wait for 38 yrs to pay up. it simply means that in the first 12 yrs of the 12 yrs option,you'd be paying a very low amount to service your debt thereby,freeing up a lot of funds for capital development which would in turn,boost the economy and when you are doing well,you could eventually pay off the rest. a man(mr A) who takes a loan of 10bn over 12 years @ 43.2%,would achieve lesser than a man(mr B) who takes a loan of 10bn over 38yrs @ 47.5%. over 12 yrs,mr A would spend 1.2bn/annum to service his debts while mr B about 380m /annum to service his debts. imagine the amount of business expansion mr B would record by spending just 380m+ for debt servicing and having so much working capital,in the 12 yrs where mr A is spending 1.2bn to service debts and having a lesser working capital... in the long run,mr B's expansion and growth would adequately cover up for him and he would be able to even liquidate his debt before the 38 yrs tenor if he so wishes. government should be run like a proper business franchise/enterprise if we want to achieve any meaningful development.

chronique:


if you are a business person,you'd understand why the 38 yrs option is better. it doesn't mean you must wait for 38 yrs to pay up. it simply means that in the first 12 yrs of the 12 yrs option,you'd be paying a very low amount to service your debt thereby,freeing up a lot of funds for capital development which would in turn,boost the economy and when you are doing well,you could eventually pay off the rest. a man(mr A) who takes a loan of 10bn over 12 years @ 43.2%,would achieve lesser than a man(mr B) who takes a loan of 10bn over 38yrs @ 47.5%. over 12 yrs,mr A would spend 1.2bn/annum to service his debts while mr B about 380m /annum to service his debts. imagine the amount of business expansion mr B would record by spending just 380m+ for debt servicing and having so much working capital,in the 12 yrs where mr A is spending 1.2bn to service debts and having a lesser working capital... in the long run,mr B's expansion and growth would adequately cover up for him and he would be able to even liquidate his debt before the 38 yrs tenor if he so wishes. government should be run like a proper business franchise/enterprise if we want to achieve any meaningful development.

Great one there my friend. You got the idea. I tell them that if the Chinese can they would take that IDA loan and keep lending it to Africa @ chinese rate making cool profits. That's how banks make money.

Kahujadekadura:
The issue there is that I had already detect one grammatical blunder from Somoye. Pls can somebody tell me what is plummeting. In my dictionary, there is no word like that. All I can see is plummet which does not realm with the sentence at all.

Go and throw away that dictionary of yours.Plummet,plummeting, plummeted. Plummeting is the present participle of Plummet.

TheWordist:
Highly educative
Oby fat lips Ezekwesili don loose guard..
Unfortunately instablog nor dey carry this kind news.

It's funny to see Nigerians applaud this Somoye guy simply because they felt mesmerized by the figures he's throwing. I know Nigerians hate mathematics and figures but at least common sense and basic principle would make the obvious more obvious.
Admittedly, lack of political conditionalities and supervision (if true) of utilization of the loans is a good thing. But that's just about the only good thing about Chinese loans BASED ON THE FIGURES POSTED IN THIS ARGUMENT. The key features of a good loan shows that IDA is a far better option than the Chinese loans.
The primary features of "better" loan lie in the INTEREST RATE and DURATION OF PAYMENT.
1.INTEREST RATE: Chinese 2-3 (or 3.6)%; IDA 1.25%. which is better? IDA of course. If you doubt it, I would ask you a question: if you're taking a loan would you go for a higher interest rate? I bet you won't.
2. Duration of payment: Chinese 12years, IDA 38years. which is better? IDA of course. In your personal loan I'm sure you prefer longer duration for easy payment.
NOW THE ARITHMETIC FIGURES.
He calculated a total Interest rate for Chinese loans for 12years as 43.2% (3.6x12).
Then IDA loan for 38years as 47.5% (1.25x38). If FG can payoff Chinese loans in 12 years, nothing stops them from paying off IDA loan in 12 years (NOBODY SAYS YOU CAN'T OFFSET YOUR LOAN EARLIER). Based on his calculation of "total interest rate", IDA loan for 12 years gives 15% (1.25x12). So by his own calculation, given the same duration of payment, IDA is still by far the "BETTER LOAN".
If this is your personal loan, I'm 100% certain you will prefer a loan that gives you CHEAPER INTEREST RATE and LONGER DURATION. (Even the Chinese if they can, would take IDA loan and lend it to Africa @Chinese rate and make some profit for themselves.....this is how banks make money if you know). I don't see how this appears like rocket science because it's on twitter but I understand Nigerians and basic mathematics are enemies.
NB: His calculated figures are FUNDAMENTALLY FAULTY as Yearly Interest is calculated from Balance for each Year and not from initial capital. So his arithmetically calculated total INTEREST RATE is misleading. Total interest rate of what, original capital? Absurd. But I don't want to delve into that for now unless someone asks for it. I'm sure that's why Madam Oby left him alone with his glorified ignorance well exposed on twitter.
Ignorance is a disease, ignorance one isn't aware of is incurable.

centoke30:

someone as bright as you are should do what I did because someone that's not bright like me cannot be educating a bright chap like you. well done sir

lol. Ok.

China? Knowledge transfer to Nigeria? How na?