Nothing has shocked me in my entire life in public service as the revelation from Nigeria’s First Quarter 2020 financial reports in the Medium Term Expenditure Framework and Fiscal Strategy from the Federal Ministry of Finance, Budget, and National Planning, which shows, alarmingly, that whereas Nigeria spent a total sum of ₦943.12 billion in debt servicing, the Federal Government’s retained revenue for the same period was only ₦950.56 billion. This means that Nigeria’s debt to revenue ratio is now 99%.

No one should be deceived. This is a crisis! Debt servicing does not equate to debt repayment. The reality is that Nigeria is paying only the minimum payment to cover our interest charges. The principal remains untouched and is possibly growing.

We are at a precipice. If our revenue figures do not go up, and go up quickly, Nigeria risks a situation where our revenue can't sustain our debt servicing obligations. Meaning that we may become insolvent, and our creditors may foreclose on us.

In my opinion editorial of December 17 2019, titled 'Endless Borrowing Will Lead Nigeria to Endless Sorrowing', I had cause to counsel the Federal Government to desist from indiscriminate lending, and offered suggestions on ways to both increase revenue and reduce expenditure.

However, my counsel fell on deaf ears. And now we have come to this. Again, on May 15, 2020, I counselled that the FG ought to reduce Nigeria’s budget by at least 25%, to reflect the economic realities of the times that we live in. Again, my entreaties were brushed aside.

As part of an administration that paid off Nigeria’s entire foreign debt, I am concerned by the alarming and avoidable unprecedented increase in our debt to GDP ratio and debt to revenue ratio. The alarm I sounded last year is now sounding louder.

Not only have we squandered our opportunities, we have also squandered the opportunities of our future generations by bequeathing them a debt that they neither incurred nor enjoyed.

As a matter of utmost urgency and importance, I call on the Federal Government to take immediate steps to drastically reduce its expenditure, especially on wasteful projects, such as maintenance of the Presidential Air Fleet, and unnecessary renovations of buildings that could serve as is, limousine fleet for top government officials, overseas travels and treatments, and the ₦4.6billion Presidential villa maintenance budget, etc.

We cannot be on the verge of economic ruin, while still maintaining a Presidential Air Fleet that has more planes than the Presidential fleets of those from whom we take these loans.

Nigeria must sell those planes and channel the revenue to other vital areas of need while taking additional steps to reduce the cost of running our government.

The Federal Government cannot continue to justify these unsustainable numbers by pointing at Nigeria’s debt to GDP ratio.

That is only half the picture. Our debt to revenue ratio paints a much more realistic portrait of our financial situation, especially as our revenues are majorly tied to a mono-product, oil and gas, which are very vulnerable to global shocks.

Again, I warn that Nigeria is facing a crisis, and we cannot continue to keep up appearances by taking out more loans to prop up our economy. That will amount not just to robbing Peter to pay Paul, but to robbing our children to pay for our greed! -AA

https://mobile.twitter.com/atiku/status/1272838676800831488

Lalasticlala

ok

The chairman of squandering committee is talking.

Atiku you were part of the marketing team of PMB to Nigerians, infact you are the General Manager Marketing department. If you had your way you will be defending this government now

Well...

tutudesz:
Atiku you were part of the marketing team of PMB to Nigerians, infact you are the General Manager Marketing department. If you had your way you will be defending this government now

Must you condem reasonable contribution everytime? We are all bound to make mistakes by supporting wrong candidate in life , But what he's saying it's 100% correct, Thanks.

ajani68:
Must you condem reasonable contribution everytime? We are all bound to make mistakes by supporting wrong candidate in life , But what he's saying it's 100% correct, Thanks.

The only reason Atiku is critical of PMB government is because of his selfish and self-centered ambition to become President. If PMB decided no to contest the last election, Atiku would remain in APC

I do not know whether to thank him or curse him.

There is nothing wrong with looters exposing looters like OBJ/Atiku Show.

tutudesz:

The only reason Atiku is critical of PMB government is because of his selfish and self-centered ambition to become President. If PMB decided no to contest the last election, Atiku would remain in APC

He is not criitizing Buhari. He is telling you that you and your children and their children is in danger of perpetual slavery.

A debt-to-Revenue ratio of 99% is absolutely frightening. I didnt even know this before now. I would usually focus on debt-to-GDP. But debt-to-Revenue ratio is an even important KPI hereesp as Atiku rightly said, we are a one product economy revenue wise. That means if any thing happens to oil today, we may ecome insolvent as a nation.

To illustarte, it means that you used your entire revenue collected to pay debts- sorry you are not even paying your debts, you are essentially using your entire revenue as a country to service your debts i.e paying interest rates.

It is equivalent to taking a mortgage on a house, and then using all your salary to pay the interest on your mortgage, leaving no money for other basic necessities of life like paying your kids school fees, feeding, buying of clothes, transport etc such that you now had to take even more loans to do these basic things. This is exactly what is happening presently- the FG and states Govts keep talking loans to keep afloat.

That is the current state of Nigeria. If you are truly a Nigerian, it should shock you

nameo:


He is not criitizing Buhari. He is telling you that you and your children and their children is in danger of perpetual slavery.

A debt-to-Revenue ratio of 99% is absolutely frightening. I didnt even know this before now.

It means that you used your entire revenue collected to pay debts- sorry you are not even paying your debts, you are essentially using your entire revenue as a country to service your debts i.e paying interest rates on your debts.
It is equivalent to taking a mortgage on a house, and then using all your salary to pay the interest on your mortgage, leaving no money for other basic necessities of life like paying your kids school fees, feeding, buying of clothes, transport etc such that you now had to take even more loans to do these basic things.

That is the current state of Nigeria. If you are truly a Nigerian, it should shock you

Na wao forger that Zombie, His kind is why intelligent people don't bother themselves in Nigerian matters again. Cos broke one will think you are trying to cover your head.. if Nigeria economy collapse tommorow am sure Atiku Won't feel a thing.

Atiku?






Eh eh eh

nameo:


He is not criitizing Buhari. He is telling you that you and your children and their children is in danger of perpetual slavery.

A debt-to-Revenue ratio of 99% is absolutely frightening. I didnt even know this before now.

It means that you used your entire revenue collected to pay debts- sorry you are not even paying your debts, you are essentially using your entire revenue as a country to service your debts i.e paying interest rates on your debts.
It is equivalent to taking a mortgage on a house, and then using all your salary to pay the interest on your mortgage, leaving no money for other basic necessities of life like paying your kids school fees, feeding, buying of clothes, transport etc such that you now had to take even more loans to do these basic things.

That is the current state of Nigeria. If you are truly a Nigerian, it should shock you

Our children and not theirs, this guy's only complain when the situation is not favouring them simple! If he was still a APC would he have made such statement? Why is he not criticizing the Adamawa governor that is corrupt? Or isn't because is son is part of the government?

tutudesz:

Our children and not theirs, this guy's only complain when the situation is not favouring them simple! If he was still a APC would he have made such statement? Why is he not criticizing the Adamawa governor that is corrupt? Or isn't because is son is part of the government?

Forget who is talking.

I dont really like Atiku too.

Focus on what he is saying. It is life and death thing.

What da fffuck is wrong with some of you Nigerians. Dem swear for una??

Zombies are calculating debt to GDP as if they would dash the country out...

Debt to Revenue is more factual, if your revenue can no longer sustain your debts, you start heading towards the Venezuelan and Zimbabwe way..

nameo:


Forget who is talking.

I dont really like Atiku too.

Focus on what he is saying. It is life and death thing.

What da fffuck is wrong with some of you Nigerians. Dem swear for una??

Swear? For saying Atiku is part of the problem? For saying he is selective when speaking up against corruption

EMMAUGOH:


Na wao forger that Zombie, His kind is why intelligent people don't bother themselves in Nigerian matters again. Cos broke one will think you are trying to cover your head.. if Nigeria economy collapse tommorow am sure Atiku Won't feel a thing.

Is Atiku part of the problem of Nigeria? Was he not supporting PBM when he took the first loan 2016 when they were friends?