TheGreenLand:
you are a wise man... dis is the real fact of the matter, unlike those wailing wailers above typing trash

and good luck was criticised by el rufai,whatya say

wamiikechukwu:


let me just Chip in a little.

a large portion of the money received are use to pay salaries and concurrent wages.

a small Chuck is just for projects.

the remaining is most times embezzled or misused.

so you see

In 2020 budget, salaries and wages is 3.08trn out of 10trn. That's about a third not even up to half. The problem is the recurrent overheads which are mostly inflated. Even the salaries and wages are inflated. Besides if income meets expenditure, there'll surely be no need for borrowing don't you think?

TheGreenLand:
you are a wise man... dis is the real fact of the matter, unlike those wailing wailers above typing trash

when it get red,you will change your moniker to wail too! oga listen they borrowed without any tangible evidence of it upon the citizens but all the impacts on the citizens are just increment of poverty.

For Sale
tasteful built 3bed room bungalow all en-suit POP tiled all through running water, paved fenced and gated @ Airport road Ibadan #12m asking 07059860462 its negotiable

Agboriotejoye:


In 2020 budget, salaries and wages is 3.08trn out of 10trn. That's about a third not even up to half. The problem is the recurrent overheads which are mostly inflated. Even the salaries and wages are inflated. Besides if income meets expenditure, there'll surely be no need for borrowing don't you think?

yes I think so, but how will income equals expenditure?

remember a more than 70% of FG earns is from oil... oil is currently below $50/barrel below for months now.

no other alternative than either to borrow or look for ways to pay or increase tax...

we are lucky that we do have a surplus trade.

budget padding is done in almost every country and organization but it's extremely difficult to stop.

Loans are good if you can repay/
It is not so long ago that we were begging for debt forgiveness?
How are we going to repay the loans?
Are we borrowing to INVEST in business or anything that has CASHFLOW?
The answer is NO
We are borrowing to invest in SOCIAL projects that are distributed not on the basis of commercial viability but rather on sentimental Federal character" and other political rather than COMMERCIAL considerations
So e.g we are not investing in a refinery, developing an oil field or a venture to enhance the local sale and consumption of gas or any business but with vanity projects that are "good to have" but will not providing any cashflow

A good example is the Abuja Kaduna rail line. Is that a profitable venture?
At the end of the day the loans will be paid for from oil money as we can be certain very few of those development project will generate any money and none of that money would be in dollars

Finally we are currently using 25% of revenue to service existing debt what would that be if we add $30 billion and what would happen if oil price crashes to $40 ?
We cannot afford to borrow $30 billion while subsidizing petrol that is crazy. Any crash in oil price we would become clients of IMF and then we would be forced to remove subsidy

finally, a light at the end of the tunnel. we need recolonisation biko. me I don't see this country getting better like this.

Our condition is from bad leadership as a result of buharis incompetence

Pusyiter:
Mshewwwwww
Is recolonisation not better than the condition we are in this country?

Original zombie will dodge the thread.

Useless leaders and good for nothing fans

Kuginzi:

IPOB wailer, Pls wail till u loose all your strength/Data, All I know is that no Igbo man will get to presidency.

For your info am not ibo, you're too stupid to see the effect of the debt on your miserable life and your poor family.

Eteka1:
The loan is meant for major infrastructural development like roads, power, rail, bridges etc. There is nothing wrong in that. Nigeria's debt to GDP ratio is one of the lowest in the world at 30.05%.

There is nothing wrong in borrowing. However, we have to be cautious with the way we go about it. Nigerians need to know the exact projects that the funds we wants to borrow will be used for. The exact amount for each projects, the people meant to handle those projects, the time it will take for those projects to bail itself out from the loan. We shouldn't just borrow because our debt to GDP ratio is low. We need to borrow because we have planned. We shouldn't also forget that corruption is a major problem in Nigeria and not so much in those country that borrows to fund infrastructural development. Remember not long ago 10billion was approved for a certain GOVERNOR for "election".

wamiikechukwu:


yes I think so, but how will income equals expenditure?

remember a more than 70% of FG earns is from oil... oil is currently below $50/barrel below for months now.

no other alternative than either to borrow or look for ways to pay or increase tax...

we are lucky that we do have a surplus trade.

budget padding is done in almost every country and organization but it's extremely difficult to stop.

It is not true that more than 70% of FG revenue is oil.
https://www.dailytrust.com.ng/non-oil-revenue-now-accounts-for-54-percent-of-nigerias-earnings-fowler.html
There are alternatives.
Stop subsidising petrol
Stop subsidising electricity
Reduce overhead expenditures
Start policies that stimulate the economy so that more tax can be raised
Remove corruption in revenue collection especially in the Customs
Borrowed money should be spend on projects that are viable e.g the 2nd Niger Bridge
Sadly many of the projects in the North are parasitic and contribute next to nothing

I do not see all these rail lines as a priority though they are nice to have but they are vanity projects and open to corruption as Amaechi has lamented about ticket sales

wamiikechukwu:


yes I think so, but how will income equals expenditure?

remember a more than 70% of FG earns is from oil... oil is currently below $50/barrel below for months now.

no other alternative than either to borrow or look for ways to pay or increase tax...

we are lucky that we do have a surplus trade.

budget padding is done in almost every country and organization but it's extremely difficult to stop.

So why have the revenue agencies been claiming an increase in revenue. If there's an increase, income should exceed expenditure. So no need for loan then.

Agboriotejoye:


So why have the revenue agencies been claiming an increase in revenue. If there's an increase, income should exceed expenditure. So no need for loan then.

Illogical reasoning

Dangote's borrowing has increased as his revenue and wealth increase
Borrowing is not a bad thing if it is cheap and manageable
Lenders are not stupid
Before lending they want to know
1. Revenue and anything that can threaten that revenue
2. existing debt load and cost of servicing it
That would reflect in the interest rates
e.g Nigeria has been borrowing from the CBN at double digit rates (recently reduced) for years a measure of the risk and inflationary pressure of this behaviour.
There has to be a limit to borrowing.A point at which it becomes "too much". No one wants to have a conversation about that.
If we borrow $30 billion today then probably half of revenue will go toward servicing debt .Dollar denominated debt would become a problem if oil prices crash and we could find ourselves in a Venezuela situation

Eteka1:
The loan is meant for major infrastructural development like roads, power, rail, bridges etc. There is nothing wrong in that. Nigeria's debt to GDP ratio is one of the lowest in the world at 30.05%.

No proof of link.
Nigeria is poor in servicing our debt. There is an African country, because of debt to China, handed over an airport, while another gave out several sqms of land to China to develop as a estate, which only their nationals live in.
Nigeria cannot borrow what it can't repay or repay by exchange of our seaport or another.
Read about China "debt trap".Uganda, Ruwanda, Fiji, Siri Lanka, Tonga, among others.

SATX:
Have you ever been to South Africa??

If you ask me, na who I go ask.

Xano:

No proof of link.
Nigeria is poor in servicing our debt. There is an African country, because of debt to China, handed over an airport, while another gave out several sqms of land to China to develop as a estate, which only their nationals live in.
Nigeria cannot borrow what it can't repay or repay by exchange of our seaport or another.

Google the debt to GDP of countries.

He just borrowed 3 billion dollars from the world bank and now he is asking for 30 billion dollars. I hope this senate will not approve it, so that they don't mortgage the future of Nigerian children yet unborn. The president has almost empty every account the federal government has including excess crude account. By the time he leaves office this country will collapse because of debt

Eteka1:
Google the debt to GDP of countries.

Google China "debt trap"

Sirjamo:
No power, no rail, no clean water, inefficient housing, miserable health care, roads are death trap, social service is non - existent, education in comatose, industries are dead, security is in limbo.... If we do not borrow, where are we suppose to find the money to fix all these?

What I think the Senate should do is to make sure that the loans are used to execute developmental projects that have the capacity to impact our lives and also have the potential to raise revenue so that we can be able to quickly pay back.

You expect illiterate to grow your economy.

Make sure ? If they don't make the sure, who will you hold accountable ?

Eteka1:
Google the debt to GDP of countries.

Debt to GDP is a crude measure
What is more important is the efficiency of extracting revenue from that GDP
i.e Revenue /GDP ratio
So if we consider The Netherlands with a GDP of about $900 billion and a population of 17 million it is likely that the revenue extacted would be higher than a country with GDP of $900 billion and a population on 170 million
It would be dishonest to say that both countries should have similar debt profiles
In short people can AFFORD to pay more tax in the former than the latter.

A similitude is the case of a man with 5 wives and 20 children earning 10 million a year compared to a man with the same income with one wife and 3 children

We must be careful of throwing around inappropriate ratios

0monnak0da:

Illogical reasoning

Dangote's borrowing has increased as his revenue and wealth increase
Borrowing is not a bad thing if it is cheap and manageable
Lenders are not stupid
Before lending they want to know
1. Revenue and anything that can threaten that revenue
2. existing debt load and cost of servicing it
That would reflect in the interest rates
e.g Nigeria has been borrowing from the CBN at double digit rates (recently reduced) for years a measure of the risk and inflationary pressure of this behaviour.
There has to be a limit to borrowing.A point at which it becomes "too much". No one wants to have a conversation about that.
If we borrow $30 billion today then probably half of revenue will go toward servicing debt .Dollar denominated debt would become a problem if oil prices crash and we could find ourselves in a Venezuela situation

I mentioned income and expenditure not borrowing but you wrote an episode on borrowing. Who asked you?
Borrowing only comes up when you have a deficit in financing. We're talking about revenue challenge here. Except you agree this govt us having revenue issue after all

juman:
With our population of over two hundred million peoples, if we borrow hundreds of billions of dollars, with good management we would pay it back easily.

But we don't have good management.
That is the real problem.

subtle supporters of bad leadership, the one's they have been borrowing what are they using it for?y making yourself a borrowing nation, Buhari and his gowns has no plan for this nation.

Oh

Agboriotejoye:

I mentioned income and expenditure not borrowing but you wrote an episode on borrowing. Who asked you?
Borrowing only comes up when you have a deficit in financing. We're talking about revenue challenge here. Except you agree this govt us having revenue issue after all

You mentioned "LOAN"

What is loan if not borrowing ,is it donation?

Keep quiet and stop trying to be clever by half
Borrowing does not ONLY come up when there is a deficit in financing.
There is no nation that has unlimited financing choices have to be made. ALWAYS
Borrowing can come about where there are benevolent lenders who offer loans on favourable terms to fund SPECIFIC projects e.g the World Bank,The African Development Bank or Friendly nations. In such scenarios interest rates may be LOWER than inflation and the loan is in effect a grant or subsidy because the amount repaid over the life of the loan may be less than the inflation adjusted value of the principal

Sirjamo:
No power, no rail, no clean water, inefficient housing, miserable health care, roads are death trap, social service is non - existent, education in comatose, industries are dead, security is in limbo.... If we do not borrow, where are we suppose to find the money to fix all these?

What I think the Senate should do is to make sure that the loans are used to execute developmental projects that have the capacity to impact our lives and also have the potential to raise revenue so that we can be able to quickly pay back.

I think you lack the brain to think that Nigeria itself makes income on a daily basis. The question is all the income coming in, what's the govt using it for?

0monnak0da:
You mentioned "LOAN"

What is loan if not borrowing ,is it donation?

Keep quiet and stop trying to be clever by half
Borrowing does not ONLY come up when there is a deficit in financing.
There is no nation that has unlimited financing choices have to be made. ALWAYS
Borrowing can come about where there are benevolent lenders who offer loans on favourable terms to fund SPECIFIC projects e.g the World Bank,The African Development Bank or Friendly nations. In such scenarios interest rates may be LOWER than inflation and the loan is in effect a grant or subsidy because the amount repaid over the life of the loan may be less than the inflation adjusted value of the principal

I'm constrained to agree with you. But you'll agree those agencies you mentioned are not benevolent as you put it. The loans come with stringent conditions. In public finance, loans should come in when there's a deficit in finances. The guy I was chatting with mentioned improvement in revenue which is what I'm trying to debunk.

Agboriotejoye:

I'm constrained to agree with you. But you'll agree those agencies you mentioned are not benevolent as you put it. The loans come with stringent conditions. In public finance, loans should come in when there's a deficit in finances. The guy I was chatting with mentioned improvement in revenue which is what I'm trying to debunk.

The World Bank is more benevolent than the IMF and Nigeria is one of the largest shareholders of the ADB
The loans are EXACTLY as benevolent as I PUT IT
i.e low interest rates and targeted at specific projects e.g transmission capacity, water etc
That lenders insist on due diligence which is not our forte does not make loans less benevolent
That is the rational thing to do especially in a country with a track record of mismanagement and corruption like Nigria

Agboriotejoye:

I'm constrained to agree with you. But you'll agree those agencies you mentioned are not benevolent as you put it. The loans come with stringent conditions. In public finance, loans should come in when there's a deficit in finances. The guy I was chatting with mentioned improvement in revenue which is what I'm trying to debunk.

Your assertion about when loans should occur in public finance is based on what .?? The Ten commandments or the Quran?
Loans happen under infinite scenarios no two nations are the same

TheGreenLand:
you are a wise man... dis is the real fact of the matter, unlike those wailing wailers above typing trash

And it terms of showing what you have done with the collected loan, Nigeria should be the worst in the world

Sirjamo:
No power, no rail, no clean water, inefficient housing, miserable health care, roads are death trap, social service is non - existent, education in comatose, industries are dead, security is in limbo.... If we do not borrow, where are we suppose to find the money to fix all these?

What I think the Senate should do is to make sure that the loans are used to execute developmental projects that have the capacity to impact our lives and also have the potential to raise revenue so that we can be able to quickly pay back.

All the money which we have borrowed before where are we. The money is just used to pay salaries nothing else the remaining of the money is sent to bank accounts and brought nothing remains in infrastructure development in Nigeria. The way Nigeria's economy is it cannot do without borrowing. The government is putting money into projects which are not profitable