₦airaland Forum

Mkenya2019:
And stop arguing about DATA
Your debt servicing ratio is SOLID DATA
Your project taking 10-20yrs is solid data

Look at the Blue Line - mere 35kms - not yet finished - phase 1 took 15yrs - phase 2 will take another 20yrs.
2008: A metro is proposed for Lagos, allegedly with a completion date of 2011.
2009: Construction commences on the Blue Line.[1]
2016: Phase I (the Blue Line from Marina to Mile 2) planned to open in December 2016.
2018: After an Alstom review of the project, Phase I (the Blue Line from Marina to Mile 2) is now set to open in 2021.
2021: The Lagos State Government announced that the Blue and Red Lines will open in December 2022.[3]
2022, January: LAMATA purchases two Talgo VIII trains.
On Jan 24, 2023, President Muhammadu Buhari inaugurated the first phase of the Lagos Mass Transit Blue Line Rail Project.[4]

Shma2023:
Redline break ground in 2013, that's pretty much 9yrs - 10yrs.

Accept facts as they are. Debating is not ego massaging contest!

Mkenya2019:
You're arguing with your own data or why you're getting hot on your collar.
If Nigeria is spending 80% (let me take the lowest ) of it's revenue to repay debt - then it barely has money to pay for salaries, electricity, build roads - without significant borrowing
If we take the realistic figure of 100% plus debt servicing ratio - then Nigeria is of course the Zoo we know.
The zoo where a project like that 14km redline takes 10yrs.
Projects in Nigeria take average of 20yrs - the country is littered with Julius Berger towns.
You know why projects take years - because Nigeria gov cannot release funds.

And of course why is a Nigeria a ZOO where nothing works - because it's macro-economic are crazy - lowest revenues (similar to kenya) - huge debt (compared to revenues).

The best way to know if you come from a zoo - try to turn on your electricity or water - and let us know.

Mkenya2019:
Anything above 33% mean you're on your knees.
Therefore 80 percent or 120 percent isnt going to help Nigeria.
What we need to know is how Nigeria is able to finance salaries,recurrent expenditure and development if any.
They are either borrowing more and more
Or they arent doing any development - which is likely the case - as Nigeria the Zoo has rotten without any roads being maintained or built
Also despite sky high inflation - salaries have not been raised.
We saw lecturers last year strike for almost a year - with universities closed.

In short Nigeria is a ZOO precisely because it uses 80-120 percent of it's revenue to pay debt leaving it with nothing for social, infrastracture or any investment - no electricity, poverty, sky high inflation, millions of kids outside schools, kidnapping. nothing works.

Kenya has to avoiding getting there - and go back to below 33% debt servicing ratio - like we have always been - except for last few years.

And kenya will be back healthy in 2025 - we have tough 2024 - then by 2025 our macro-economics will be very solid - we will have brought debt to gdp to 55%; we will have budget surplus on recurrent expenditure,

we will be spending 33% on debt; 33% on development; 33% on salaries, operation & maintenances.

That is how an individual or company or a country is supposed to run 1/3 spend on debt, 1/3 to O&M, 1/3 on investment.

68816419:
The dude is too daft to comprehend

Mkenya2019:
Tomorrow I will explain what is going on after I research. Yeah it crazy. Imagine kenya we are crying murder at 60 percent. Nigeria is at 120

rvp20182:
Why shouldn't I - you think he has personal beef with Ghana or Nigeria?

Again I dont use one story - It combination of many things that show Nigeria is SICK.

I asked you to bring debt servicing ratio? You went MIA

You rather engage in personal attack against an illustrious proffesor trying to help your realize the depth of the hole.

Stop being delusional. Nigeria must confront its problem.

We dont hate Nigeria. But it's a ZOOOOOOOOOOOOOOOOOO.

vaxx:
lol...I am also on Wikipedia . Show me his literature that is what I ask you to do not his biography . You are even more stupid showing me wikipedia page of him .


Didn't he has published work

vaxx:
You are idiot. only poor wretched country consider the option of not paying salaries when there is evidence of high cost of living and distress in the country . Debt restructuring on the other hand is what country who still prefer to stay in the financial market will consider. Russia (With a more successful economy than any africa country ) once did it and works . Only poor nation will consider the option of not paying workers .

That is damn stupid

Just40:
mad man

Kenya is doing 75% of revenue... Kenyan wages, salaries and compensation takes 55% of revenue

There's no way to balance this and that is why Kenya is bankrupt and has defaulted of so many debt.
Now you don't want to pay workers.. the headache is on Kenya to solve and the IMF couldn't save you from this train reck.

Neither Ghana or Nigeria has gotten to this level of mess yet.
This is why you can see big budget financing projects going on in both countries but not in Kenya.

rvp2018:
Yes at least you were able to nail the domestic debt restructuring - domestic creditors have little in negotiating power.
Now go and negotiate with Chinese
Tell China-man to take haircut - and you'll know China man doesnt joke around.

rvp2018:
What is Nigeria Debt Servicing Ratio.
Kenya one has risen from 24% to 33% to 40% to 50% to now 60%.
Ideally 33% is benchmark for gov or your as individual.
1/3 of your salary or revenue should go to debt repayment - obviously Kenya has dropped the ball - hence the occasionally cash crunch.

Argue with facts or just throw facts outside like Ghanians - and rant like a mad man.

What is Nigeria Debt Servicing Ratio.

rvp2018:
Nigeria debt servicing ratio is 100% - that mean your federal gov cant pay salaries and recurrent expenditure without borrowing.
That is why entire year lecturers were on strike - universities close.
Your Zoo is beyond redemption.

rvp2018:
When you default; debt problem doesnt go away; it become worse;

That is why you're knocked out until 2037

If we delay some salaries for a week; what is problem;

Nigeria delay salaries for six months; Pension for 2yrs

PRIORITY - PAY DEBT - unless you're completely BROKE like GHANA

Even in your salary payslip - 1st charge is loan repayment. The same for gov - 1st charge is to repay debt.

rvp2018:
Opposition propaganda from a party that nearly took Kenya to Ghana - default. Mps were paid salaries.

The new administration has worked very hard to avoid Ghana default.

vaxx:
Despite Ghana woes, paying salary has never become a problem.

Kenya is indeed broke and distress, she can't even pay common salary. This only happens when too much of your revenue goes into debt servicing..

chrisooblog:
If you had asked me this question in 1999 I would have agreed wholeheartedly with you but having seen how things have progressed not just in Nigeria but other parts of Africa I'm not sure 100%.

In terms of curbing impunity and corruption democracies all over Africa haven't done too well although I will have to admit democracy has helped improve infrastructure in most countries on the continent Nigeria included.

Military rule really did a number on us. From General Buhari, IBB, Abacha and Abdulsalami no major investment in infrastructure like power plants, refineries, hospitals, dams, etc. Even though Abacha built some roads especially in Northern Nigeria it wasn't widespread to have a big impact on people's lives.

SUFFERInSMILIIN:
Come December this year the suffering and smiling she would be back with a twist. This time it will be suffering and smiling show broadcast live from Lagos and all City including Abuja

Just40:
African Artistes with the Most UK Singles Chart Entries

Burna Boy 🇳🇬 - 16

Wizkid 🇳🇬 - 13

Fuse ODG 🇬🇭 - 8

Youssou N'dour 🇸🇳 - 4

Mr Eazi🇬🇭 - 3

Ayra Starr 🇳🇬, BNXN 🇳🇬, Davido 🇳🇬, Osibisa 🇬🇭, K'naan 🇸🇴, Rema 🇳🇬, Tems 🇳🇬 - 2 each
Amaarae 🇬🇭, Asake 🇳🇬, Angelique Kidjo 🇧🇯, CKay 🇳🇬, D'banj 🇳🇬, Die Antwoord 🇿🇦, Fireboy 🇳🇬, Hugh Masekela 🇿🇦, Lojay 🇳🇬, Libianca 🇨🇲, Maleek Berry 🇳🇬, Mugeez 🇬🇭, Omah Lay 🇳🇬, Oxlade 🇳🇬, Pheelz 🇳🇬, Sarz 🇳🇬, Shatta Wale 🇬🇭 - 1 each

Emperormartin:
As Buhari government tried everything humanly possible to arrest Nnamdi Kanu...

I'm guessing Tinubu government will do the same to Simon Ekpa

vaxx:
This is the country some individual are trying to compare with us . Even Benin republic is way advance than this shit-hole

rvp2018:
23 billion - okay - minus oil subsidy of 12B - remainder 11B - minus debt servicing of 11B - BROKE.
You then go to borrow to pay salaries and recurrent expenditure at crazy interest rates.
Ideally you should default - and stop borrowing. Then address that mess.
But you fear being laughed out like Ghana

rvp2018:
Last I checked it was 10B from Federal Revenue; 15 or 12B from oil/royalties - which was immediately converted into stupid fuel subsidies;
So basically usable revenues are 10B;
Usable forex I hear are about 15B; far cry from official figures;
Just like forex exchange going by black market is almost double the official rate.
Nigeria has been in the red for sometime - with debt servicing ration long exceeding 100%.

What is stopping your from defaulting is just national pride. - you rather pay 100% of all money to service debt
What is also stopping your from devaluaing Naira is the same national pride.

Eventually you must confront the your economic demons if you want to stop manufacturing poverty at industrial scale like you're doing now - and your federal gov is totally dysfunctional.

Fourpockets:
Finally, congrats to Kenya after how many years. Nigeria launched her first in the early 2000's

Maryloveth:
Just want to remind you that Tinubu is a drug lord.

Thank you zaddy for try to bring more international disgrace to our reputation .

Take care zaddy

rvp2018:
Federal revenues is 10B
Federal external debt is approaching 50B - if Naira is devalued so you can have unified exchange rate - it will mean doubling of debt obligation.

Again states have their revenues and their debt

rvp2018:
External debt...overvalued naira..will eventually devalue..doubling your External debt. With 10b dollars in revenue you already cant repay debt.States are also choking in their debt.I called out Ghana default years before due to their External debt.Nigeria is heading there

rvp20182:
I predict Nigeria will file for bankruptcy this year. No way with revenues of 10B dollars they can fulfill debt obligation. They will join Ghana soon.

The East AfricanRest Of Africa
Nigeria’s debt at $103b, GDP wanes as inflation, redundancy rise
TUESDAY APRIL 04 2023

President Buhari and his Vice President Osinbajo
Nigerian President Buhari (right) and his Vice President Osinbajo. They will leave office on May 29, 2023 bequeathing an economy hit by debt, inflation, unemployment and poverty to their successors. PHOTO | PRESIDENTIAL VILLA

Summary
A report revealed that Nigeria’s inflation rate will average 20.5 per cent in 2023.
Data revealed that debtors who owe Nigeria’s government agencies refused to honour obligations but were still being paid.
Nigeria expected to spend 60 percent of its total revenue on debt servicing in 2023.
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General ImageBy MOHAMMED MOMOH
More by this Author

Nigeria’s economy is weakening as its total debt climbed to $103.11 billion with spiralling inflation and unemployment. The dire economic situation is what the country’s outgoing President Muhammadu Buhari would hand over to the incoming president on May 29, 2023.

According to Nigeria’s Debt Management Office (DMO), the total public debt stock of the country consisted of the domestic and external debts of the Federal Government of Nigeria (FGN) and its 36 state governments.

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DMO in a statement on its website took a comparative debt stock and reported that Nigeria’s debt as of December 31, 2021 was $95.77 billion. In terms of composition, DMO said the country’s total domestic debt stock stood at $61.42 billion while total external debt stock was $41.69 billion.

“Among the reasons for the increase in total public debt stock were new borrowings by the Nigerian government and its state governments, primarily to finance budget deficits and execute projects. The issuance of promissory notes by the country’s regime to settle some liabilities also contributed to growth in the debt stock,’’ the office said in its latest release in Abuja

https://www.theeastafrican.co.ke/tea/rest-of-africa/spiralling-debt-weakening-economy-of-nigeria-4184064