Endless Borrowing Will Lead to Endless Sorrowing.

By Atiku Abubakar.

John Quincy Adams once said “there are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.” He may have very well been referring to Nigeria of the last three years.

Barely two weeks ago, I warned during my Founder’s Day lecture at the American University of Nigeria, Yola, that Nigeria had taken almost as much foreign debt in the last three years, as she had taken in the thirty years before 2015 combined. Now that is frightening. And very true.

Frightening, not just because of the amount, but because after such unprecedented borrowing, we have emerged as the world headquarters for extreme poverty and the global capital for out of school children. It begs the question: what were the funds used for?

I have said it time and again. The business of government is too serious to be left in the hands of politicians. We must all ask questions because if they throw away the future, it is not going to be their future they are throwing away, it will be all our futures.

The fact that Nigeria currently budgets more money for debt servicing (₦2.7 trillion), than we do on capital expenditure (₦2.4 trillion) is already an indicator that we have borrowed more money than we can afford to borrow. And the thing is that debt servicing is not debt repayment. Debt servicing just means that we are paying the barest minimum allowable by our creditors.

And while spending 50% of our current revenue on debt servicing, this administration wants to take further loans of $29.6 billion! To say that this is irresponsible is itself an understatement.

As a businessman, one of the very first things I learnt is that you do not take loans except you are expanding your business. Even as an individual, when your income cannot fund your lifestyle, you are challenged to grow your income, not your borrowings.

Even if this administration borrows $1 trillion, it will never be enough because their challenge is one of capacity. They are not using the funds they already have wisely. They do not need more debt. They need more intellectual capacity.

The money the Muhammadu Buhari administration wants to borrow to fund its Medium Term Expenditure Framework (MTEF) could be acquired without sinking the nation into further debt. All it requires is visionary leadership and business acumen.

In my economic blueprint, I said that rather than turn in regular losses (which it has consistently been doing), the best thing to do with the Nigerian National Petroleum Corporation is to reform it. Of course, the administration’s paid propagandists went into overdrive, accusing me of planning to sell the NNPC to my friends. But just last week, Saudi Arabia’s ARAMCO, the most profitable company in the world, took that route and almost broke the global stock market with the most successful initial IPOs in world history, bar none. Ironically, Saudi Aramco raised $29.4 billion via this IPO. Just the amount this administration wants to borrow.

That could have been Nigeria’s story, but for our failure of leadership. By reforming the NNPC, Nigeria can raise the $29.6 billion the Buhari regime wants to borrow, and we will raise the money without going into debt.

If we had taken that route, not only would we have attracted Foreign Direct Investment into Nigeria, but even better than investment, we would have attracted confidence in our economy, because it would have shown that we have a thinking leadership.

Take the example of the Nigeria Liquified Natural Gas company. This is a joint venture between the Nigeria government and the private sector. Yet, while the NLNG declares very handsome profits, in billions of dollars every year, the NNPC declares losses! This is proof that the NLNG model works, and the NNPC model does not.

Moody’s, the world’s preeminent rating agency, has just downgraded Nigeria. Ghana, a nation with only 15% of our population, now attracts more Foreign Direct Investment than Nigeria, and Rwanda, a country with less than 15% of our mineral endowment, has an economy that is growing at twice the rate of our economy. The problem is not revenue. The challenge is not Nigerians. The issue is leadership.

While there is scant information in the Medium Term Expenditure Framework for what the loan would be used for, I could not help but read a communication from the Presidency to the effect that one of such projects would be the digitalisation of the Nigerian Television Authority and other similar projects.

Spending revenue on such projects would be foolish, but spending loans in such a manner is nothing short of foolhardy. The Nigerian government does not have a good record of running businesses, and a public television network is unlikely to yield the type of income that would justify taking out loans to digitalise it. Besides, is that a priority, when we have 12 million children out of school? Like I said, capacity, not revenue, is the problem.

And in proof of this, I offer the example of how this administration took delivery of $322 million Abacha loot in 2018 and claimed it shared it out to poor Nigerians, only to obtain a $328 million loan from China, allegedly for ICT development the very next month. How do you share out $322 million and then borrow $328 million? Who does that? At the risk of repeating myself, it is clear that no amount of money, whether from revenue or borrowings, will be enough for an administration that lacks capacity.

So, what must Nigeria do now? Rather than profligate borrowing, what Nigeria needs to do is restore investor confidence in our economy. Key to that is respecting the independence of key institutions, such as the Judiciary and the Central Bank of Nigeria. Both of these institutions are now the captives of Buhari and his cabal, and though they are loathe to admit it, they cannot take one step without watching their backs.

Why are foreign investors leaving Nigeria for Ghana? The answer is that Ghana, unlike Nigeria, has learnt how to divorce key institutions from politics. The Ghanaian central bank enjoys a degree of independence that our own CBN can only dream of under the prevailing atmosphere. You will not hear Ghana’s leaders give flippant interviews overseas about their plans for the cedi, as Buhari has done in Europe about the Naira. It rang alarm bells because it is not the job of the executive to interfere in the role of the reserve bank.

Neither will you find Ghana’s leaders blatantly intimidating the judiciary by obviously setting up judges and invading courtrooms. Why would any investor come to Nigeria under such prevailing circumstances? Their thought would be that if they had industrial disputes, our courts, under this administration, could not be counted on to deliver impartial justice.

I was part of a team that paid off Nigeria’s entire foreign debt. I, therefore, cannot sit and watch an administration without vision squander our children’s future by taking and wasting loans that they do not even have the capacity to utilise properly.

Thank God for leaked memos that have exposed the lies this regime has told Nigerians about unprecedented revenues in the Federal Inland Revenue Service and the Nigerian National Petroleum Corporation. Now, we know that Nigeria is not poor because she is not making enough money. The truth is that Nigeria is poor because she is not making the right leadership decisions.

Thomas Jefferson said, “to preserve our independence, we must not let our rulers load us with perpetual debt.” Dear citizens of our beloved nation, this is a call to heed.

President Olusegun Obasanjo and I paid off this nation’s debt, and I will not stand idly by and watch while Nigeria is plunged into second slavery by those who only know how to reap where they have not sown.

Our youth must have something better to inherit from us than unsustainable debt fuelled by insatiable greed. That is why I call on the Senate of the National Assembly to show loyalty to Nigeria and reconsider its decision with regards to approving Buhari’s $29.6 billion loan request.

We need to pay heed to Benjamin Franklin’s advise that “he that goes a borrowing goes a sorrowing”. I call on Nigeria’s youth to identify the Senator representing their senatorial zones and write to them, urging them to vote against this request. Do this, because it is you and your children that will pay back these loans that would be squandered by this ravenous cabal who do not have the word enough in their vocabulary.

Source: https://m.facebook.com/story.php?story_fbid=10157827746884640&id=14312764639

If you are in his shoes, am very certain that you will do more than this, all of you are fucking the same.

Actually borrowing helps to ease the government from using public funds in which the public funds can b used for a more short time workable project. Let me englighten you lets say the government wants to build a capital intensive project of 1b$ like a light rail which the construction would take probably 4 years.Dont you think it would be at a disservice to the nation if almost half of the budget is used for this purpose while leaving some more pressing aspects of development like education and co. So borrowing would actually give the government another source of capital which would be used for the project while the budget can be allocated for other things

Abcdefghij10000:
Actually borrowing helps to ease the government from using public funds in which the public funds can b used for a more short time workable project. Let me englighten you lets say the government wants to build a capital intensive project of 1b$ like a light rail which the construction would take probably 4 years.Dont you think it would be at a disservice to the nation if almost half of the budget is used for this purpose while leaving some more pressing aspects of development like education and co. So borrowing would actually give the government another source of capital which would be used for the project while the budget can be allocated for other things

I am not sure you read that well, he didn't say its bad to borrow but this administration has been borrowing with nothing to show for it, part of what they want to use the fund for is to degitalize NTA while we have more important issues such as poverty, insecurity, unemployment, poor health and educational system e.t.c. that are more vital to be tackled, who does that??. Mind you, they are accumulating funds we will be the ones to pay gradually in the future.. Get that into your brain!

Written for Atiku, for Buhari. The Issue is Buhari does not read newspapers nor listen to radio.

miteolu:
Written for Atiku, for Buhari. The Issue is Buhari does not read newspapers nor listen to radio.

He has aides, if they are wise, politics aside this is a very good advice to listen to

Do we know that Abacha's Loot of about N360billion would have transformed our 36 Constitutional States tremendously in Ranches and Husbandry if Buhari had shared the money N10billion per state.

Baztardmods:

He has aides, if they are wise, politics aside this is a very good advice to listen to

Advice wetin. Non of Buhari's aides tell him the truth you want Kyari to fire them

DISCLAIMER : I am not an APC supporter, I do not work for government in any capacity, nor am I a pro Buhari man, and have never in my life voted for PDP(except once in a Local government election, because there was no better alternative then)...or APC or its precursor parties...

Having got that out of the way...

1.In April 2014...oil prices fell....and kept on falling till in 2016, oil was at $30 per barrel, down from $75 per barrel in 2015...which was down from $120 in Jan 2014....

2.As things stand now, oil is at $60 per barrel.

3,Because of the drop in oil revenues, in order to keep our heads above water....WE HAVE HAD TO BORROW.

4.Also, as has been stated elsewhere...we need oil to be at least $100 per barrel before we can have a good economy( that is why in 2011-14, we had a good economy because oil was above $90 during those times).

5.As long as oil is below $100 per barrel, we would have to borrow. We have no choice.

6.If you want government to stop borrowing...good. I think so too. But that means that in return, salaries would not be paid at all, taxes would be at rates of 50-60% on everyone, including people earning below N50000monthly who are excluded from taxation,and our country would be broke. We would also have to remove subsides on everything..which means fuel would cost N300 and above per liter because now we cannot afford subsides.

7.Ultimately, borrowing has to continue....and EVEN if oil gets up to the ideal of $139 per barrel....which is where we need it not to borrow...we still have to pay off debts accruring previously.


We were here before , from 1982-1991, and again from 1992-2003.

The only way forward is simple....Nigeria must industrialse. Yes, it sounds fanciful, but we must take the hard road to industrialization. There is no ther way, and sadly APC nor PDP have the ideas we need.

We must also cut every subsidy in the fuel and power sector...so that we can save money and attract investors who will build our power and petrol sectors to the point where we can fuel our industrial development.

Nigeria must get off oil.

Now.

I can see wisdom in what he's saying

Dear Atiku,
Buhari cannot hear you.
He is partially deaf


I'm out

And in proof of this, I offer the example of how this administration took delivery of $322 million Abacha loot in 2018 and claimed it shared it out to poor Nigerians, only to obtain a $328 million loan from China, allegedly for ICT development the very next month.

How do you share out $322 million and then borrow $328 million? Who does that? At the risk of repeating myself, it is clear that no amount of money, whether from revenue or borrowings, will be enough for an administration that lacks capacity

When will Nigerians shun tribalism, hate and religion to start electing businessmen to run this country?

I read the article word for word. And I must say that Atiku Abubakar is an intelligent man.

We don't have intelligent leaders. I make bold to say that Buhari is not intelligent, that's why he hardly takes questions from the press. He only reads prepared speeches.

The Candidate exposed the slowpoke, yet some educated persons voted for him for reasons best known to them. Buhari is just killing our children's futures with senseless borrowing

While I await a rejoinder from the APC, I must say that the PDP has to step up its opposition before Buhari ferries the country to the abyss.

That said, I will not pity Nigerians again. If you people like make a madman your president. What I know for certain is that God has settled me and my family for good!

Yeye country, stupid voters!

I couldn't even read the post to the end....

Now he has mouth to be talking....

one step forward, ninety nine backward.

FACT

Buhari has mortgaged the future of Nigerians.

I totally agree with Atiku on this one.

Particularly annoying is that the country and the rubber-stamping parliament have not told anybody how the country will pay back!

Our main forex earner is OIL and now that the prospects of OIL has never been as low, how will Nigeria be able to payback the loan?

Just yesterday it was said that they have budgetted 37 Billion Naira to renovate the National Assembly!!!!!! How much will they build a new one? 40 Billion Dollars? And we still want to borrow?

Who did we offend?

This is half truth but full lie.

The only way to come out of this infrastructural decay is to invest in our infrastructures. Since we dont have huge funds to actualize this dream, the only plausible way is to borrow.

This infrastructure is what will build and boost our earnings repay our debts and give us better living.

Oga Get a Chile Kunu and Fura de nunu

The future of Nigeria is already in Recession if the borrowing keeps increasing and the question still remains, where are all the recovered money? The recovered assets, and where is the all the money Nigeria makes from the high price of fuel? What a way to kill the masses when nothing is reflecting in their lives.
https://www.nairaland.com/4814062/aluminium-windows-building-casement-casement/7

orunto27:
Do we know that Abacha's Loot of about N360billion would have transformed our 36 Constitutional States tremendously in Ranches and Husbandry if Buhari had shared the money N10billion per state.

Always pointing fingers at Buhari, how will N10b per state transform the states when they share same amount monthly as allocation.
That money was given to states as Paris fund, yet nothing to show for it.
Now the $30b that GEJ could not account for would have turn Nigeria if each state shared N300b.
Atiku own be say make him go sidon for corner, himself and his master used Nigeria big time.
A man who wants to rule Nigeria from Dubai.
PMB is not the best democratic president but Atiku should just shut his mouth, they destroy the system and gave way to democratic looting.
I am still yet to see any Democratic president that is better than the military rulers we had except Abacha. Democracy failed us

Shut up abeg.. Borrowing for infrastructure is better than selling NNPC


If this scumbarg Atiku and El'rufai didnt sell off Nigerian Asset like Nitel and Nigeria Airways or Delta Steel company rather than borrow single digit long term loan to revive the companies, Nigeria would be making extra income by now and we would have paid back the loans while keeping people employed



..

Kiss the truth

Atiku should tell us what his government and party did with 16 years of of non-borrowing.

True Talk! Buhari's government is creating a time bomb... heartlessness of the highest order!

ENDLESS BORROWING IS BETTER THAN ENDLESS LOOTING IF INVESTED IN CAPITAL PROJECTS

QED

Tell them

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voltron14:
Atiku should tell us what his government and party did with 16 years of of non-borrowing.

[/s]

Unfortunately, those in power don't care as long as it does not affect them in person.

Baztardmods:

I am not sure you read that well, he didn't say its bad to borrow but this administration has been borrowing with nothing to show for it, part of what they want to use the fund for is to degitalize NTA while we have more important issues in the country to tackle. And they are accumulating funds we will be the ones to pay gradually in the future.. get that

What are the important issues they aren't borrowing to solve?

[s]

Exc2000:
Shut up abeg.. Borrowing for infrastructure is better than selling NNPC

[/s]
what do a failed freelancer know