One day they will seize Nigeria

zakim:
The Federal Government and World Bank are in talks for as much as $2.5 billion in a new tranche of concessionary lending to Nigeria, the bank’s Vice President for Africa Hafez Ghanem has said. In the past year Nigeria received $2.4 billion from the World Bank, Ghanem said in an interview with Bloomberg in Abuja on Wednesday.

“We’re talking about a new set of programs of about the same amount, it should be around $2.5 billion,” he said. Faced with revenue shortfalls as the output and price of oil fell in the past five years, President Muhammadu Buhari’s administration has increased borrowing to finance government spending, with domestic debt at $55.6 billion and foreign loans at $25.6 billion.

The Minister of Finance, Budget, and National Planning, Mrs. Zainab Shamsuna Ahmed while giving details of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper said borrowing would be a key component in funding the budget as government cannot drive the required resources to fund the budget without borrowing.

She said the new borrowings are put at N1.605trn for 2019, projected N1.7trn for 2020, N1.6trn for 2021 and N1.3trn for 2020. The borrowings will be 50 percent local and 50 percent foreign she said. Out of the N1.7 trillion to be borrowed in 2020, of this amount, N850 billion will be domestic borrowing while the balance of N850 billion will be from foreign borrowing.

The total fiscal deficits for 2019 is N2.474trn, in 2020 it will reduce to N2.154trn. The deficit to GDP is 1.77 percent in 2019. “Debt service is also increasing. And this is so because we have increased our borrowings in recent years. Our debt servicing has increased from N2.144trn in 2019 to N2.45 in the year 2020,” the minister had stated. To ease the mounting debt burden, Nigeria has sought more credit with low interest and long repayment periods from institutions including the World Bank and the African Development Bank.

“The current economic performance of Nigeria is not enough to reduce poverty,” said Ghanem. “We need to accelerate growth.” The World Bank’s focus in Nigeria is to lift about 100 million Nigerians, half of the population, out of poverty, with special emphasis on women’s education, expanding digital opportunities and solving a power crisis that hobbles economic activities.

“It’s important to resolve the problems of the power sector in Nigeria to bring in more investments”, because you need to bring down the cost of power to make the economy more competitive for the development of industries,” he added. The World Bank is supporting digital transformation in Nigeria because of its potential ability to transform other areas of the economy including industry, agriculture and services, according to Ghanem. “Nigeria has a comparative advantage in that area because of the youth, a majority of the population is young,” he said.

“So if we want to create jobs, we need to invest much more in the digital economy.” Speaking with Daily Trust in Abuja, a former Managing Director of a commercial bank said there is nothing wrong in borrowing if it is done to build infrastructure and do other necessary things in the country.

The former MD who didn’t want to be quoted however advised the FG not to squander the money on jamborees or things that would yield no benefits to Nigerians.

Read more: https://www.dailytrust.com.ng/fg-seeks-fresh-2-5bn-world-bank-loan.html

FG always borrowing loans. . Always increasing VAT and taxes. . Always refusing to increase salaries as agreed. .

APC is a disappointment. I can't imagine how poor their economic team is. .

How is crude oil now. . How much was it when OBJ paid all Nigeria's debts and still left over 50b dollars in foreign reserve.

Disgusting

So all the fight to be President is about borrowing none stop! Governance is so cheap in this part of the world. Everybody shouting to God and Allah for blessing forgeting that their blessings are with their Rulers.

lloyds:
FG always borrowing loans. . Always increasing VAT and taxes. . Always refusing to increase salaries as agreed. .

APC is a disappointment. I can't imagine how poor their economic team is. .

How is crude oil now. . How much was it when OBJ paid all Nigeria's debts and still left over 50b dollars in foreign reserve.

Empty Rulers and Followers...

One day you will support APC another PDP lol... I laugh at a lot of people on this forum including the OPs... it is just thesame set of thieves recycling again...

APC thieves
PDP thieves

To fund RUGA..oh I mean livestop programme NEC approved billions for

Nigeria is finished.

all we know how to do in this country is talk talk and talk.
We don't love this country, if we do these things won't be happening now.

When it's time to repay these loans Buhari would have left power. People like MBBQ won't be here to have a healthy debate against the overborrowing done by Nigeria.

Northerners should never be allowed near the seat of power ever again...

How can an oil producing country need to borrow money

Buhari just sell Nigeria and share the money to everyone lets find our levels. Imagine!

I WILL NEVER FORGIVE GEJ FOR HANDING OVER THIS COUNTRY TO THIS BUNCH OF CLOWNS.IT'S A SHAME TO BE PART OF THIS NOBLE EXPERIMENT!!

hisexcellency34:
Loans everyday. Who will pay?

You

BUHARI is just stealing and looting what he couldn't steal in 1980s with the help of his remote control Abba kyra.... Afonjas come and defend your Fulani master

WHY KEEP BORROWING? WHERE IS EFCC RECOVERED LOOTS? BETWEEN THE GOVT. AND EFCC, WHO IS LIEING AND MANIPULATING FIGURES BORROW ! INCREASE TAXES ! INCREASE HARDSHIP ! WAY TO GO ! UP NEXT LEVEL, UP UP UP APC NEXT LEVEL.

PoliticalWitch:
Okay...if we want to stop all this loan business , two things have to happen

1.Oil goes above $140 per barrel and stays there for the next five years (now looking likely since Trump and Khamenei are about to fight it out).

OR

2.We stop wasting N2 trillion on fuel subsidy, or underrecovery, or whatever...direct the money to railways, power and education, watch as investment flows into the country to build refineries, etc...,make NNPC private...and at the end of the day, our economy will flourish and we would become the one giving out loans.

Nigeria's problem is simple. We rely on oil too much. And this oil is not enough for us. Time we faced that fact, ended subsides, and used the money where it is needed...so that investment will build the stuff we need...and we can fund the educaiton and railways sector which would help the poor much better than some yeye subsidy payments to some cabal.

But apc ain't listening to good economic advice.

We are going to keep on taking loans because oil is not high enough in price to meet our needs...and because we are subsidising fuel for no good reason. 2 trillion naira annually would make a difference in educaiton, and railways, and even power.

To repeat...Nigeria needs oil above $140 per barrel to stop taking loans. Current oil prices is around $60-80. So, in practical terms we have to start saving money...and this means an end to fuel subsides.

I thought your Messiah sai barbar said he don't know what is subsidy why are we paying for it

We know, no be today them de do am

Okay..

AFONJAPIG:
I thought your Messiah sai barbar said he don't know what is subsidy why are we paying for it

I'm not for APC or PDP, or any politician. Sorry. Take your political story elsewhere.

If you believed that APC and Bubu chattering about subsidy removal back then, then you don't understand how a subsidy works.(and it was obvious from Bubu's comment then that he did not get it either)

Marineghost:
America sef dey borrow money
Buhari is working✓

Don't ever compare Nigeria 's borrowing to America. USD is the currency for international transactions and they print it in-house. For Nigeria, foreign loans must be paid from foreign reserve.

They just want to snap the country to death, use the money to develop the infrastructure in their regions (north and south west) and then run off, so called Patriots

PoliticalWitch:


I'm not for APC or PDP, or any politician. Sorry. Take your political story elsewhere.

If you believed that APC and Bubu chattering about subsidy removal back then, then you don't understand how a subsidy works.(and it was obvious from Bubu's comment then that he did not get it either)

so you are telling me Bubu is confuse then and now

AFONJAPIG:
so you are telling me Bubu is confuse then and now

Go and argue with your APC friends about that.

Like you did not understand my comment....PDP and APC to me have no answer to Nigeria's problems....yesterday, today and even tomorrow.

Not all of us support PDP or APC. Some of us are neutral.

Good morning to thee.