₦airaland Forum

You cannot keep borrowing if you are staunchly againgst restructuring and decentralisation that will improve and diversify our economy. Better economy equates to more jobs and increased tax revenues to repay the loans.

Buhari has killed and is still killing this country.

TohLet them kuku put Nigerians on eBay or OLX once and for all

I begin to wonder how any sane person would continue to support Buhari and his APC maladministration.

No iota of attempt to look inwards to diversify the economy except to heap taxes upon taxes on the hapless and increasingly hopeless citizens. Then, of course, go on unending borrowing spree!


I pity anyone who would take over from this "borrow borrow" government.


Buhari, God gave you the rare opportunity to govern the people by being a blessing and not a curse.

Like if you believe that Buhari is a curse.
Share if you believe Buhari is a blessing.

Upworkwriter007:
According to the report above, Buhari's government is planning to reduce debt after he leaves office in 2023. Lol.

FG blues....

And yet Buhari supporters will say price of oil was low compared to Jonathan.

The money this man has borrowed has surpassed all the money that Jonathan had to work with it.

BeeBeeOoh:
Govt borrowing plan focuses on domestic bonds, concessional external loans



https://punchng.com/fg-plans-n12tn-fresh-borrowing-public-debt-to-hit-n50tn-by-2023/

I have already given myself a CHINESE name (Ji Ma Sun) since Bubu assumed office just incase China wants to recolonise us

Potential problems of high government borrowing


Higher debt interest payments. As borrowing increases, the government have to pay more interest rate payments on those who hold bonds. This can lead to a greater percentage of tax revenue going to debt interest payments.

Higher interest rates. In some circumstances, higher borrowing can push up interest rates because markets are nervous about governments ability to repay and they demand higher bond yields in return for perceived risk. This was particularly a problem for countries in the Eurozone because in 2011/12 there was no real lender of last resort. In periods of high inflation, investors will also demand higher bond yields – e.g. in the 1970s, high government borrowing caused an increase in bond yields.

interest rates
In 2010/11 – countries in the Eurozone with high deficits experienced rapidly rising interest rates because of markets fears over their ability to repay. (see: bond yields on EU debt)

Higher interest rates on government bonds tend to push up other interest rates in the economy and reduce spending and investment. (This impact of higher interest rates in reducing private sector spending is known as financial crowding out)

Crowding out A classical monetarist argument is that high levels of government borrowing cause ‘crowding out’. What they mean is that the government borrow from the private sector by selling bonds. Therefore, because the private sector lends money to the government, they have less money to spend and invest. Therefore, although government spending increases, private sector spending falls. Also, it is possible government spending may be more inefficient than the private sector and so we get a decline in output.

However, crowding out is unlikely to apply in a recession because in a recession private sector saving is rising and there are surplus savings. If the government borrows, they are making use of surplus savings and so do not ‘crowd out’ the private sector. The government are spending to offset the rise in private sector saving.
Higher taxes in the future. If the debt to GDP rises rapidly, the government may need to reduce debt levels in the future. It means future budgets will need to increase taxes and/or limit spending. The danger is that if taxes are increased too early too quickly, it could snuff out the recovery and cause a further downturn. But, if they don’t raise taxes, markets may be alarmed at the size of borrowing. High government borrowing can cause difficult choices for future chancellors; it is a difficult situation to be in.

Vulnerable to capital flight. If a government finances its deficit by borrowing from abroad, then there is potential for the economy to suffer from capital flight in the future. For example, if investors feared a country like Greece would be forced out of the Euro and devalue, investors would lose out from the devaluation. Therefore, this would encourage foreign investors to sell – causing more pressure on the economy.

Inflationary pressures. It is rare for government borrowing to cause inflation. But, some governments may be tempted to deal with high levels of debt by printing more money. This increase in the money supply can cause inflationary pressures to increase.

Dear china and other lenders when its time to collect your remember the administration you borrowed it to and me to i have written to world bank using my citizenship and buhari as my collateral and guarantor for a loan

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Onyiiobi7735:
Another borrowing galore! Buhari has so much destabilized and disorganized this nation with his lifeless hands,and it's only God who can remedy the situation.
It shall never be well with all those who voted in this monumental, walking disaster.

Hmm my prayers for nigeria...may God intervene for the poor masses,may borrowing borrowing ,the country is damage already.
My questions,were are all the proffessor in economist,all the fraud money collected ,in which pocket does it goes,diezini daimond bra money in which pocket is it in,other recently billions of dollars detected property,by this same diezini were are they..oh God..our leaders are not ready to hears the cries of the masses.oh lord intervene...this cheating and lies are becoming unbearable ....in your name we have prayed.

And as usual, our rubber stamp will approve it.

Nigerians should be thanking saraki Senate for it's stand against external borrowing by this regime, if not by now our debt portfolio will be almost at #50tril or more.

Understandably, the emotions around Nigeria's borrowing run high simply because we the people have been shortchanged over the years by various leaders. However, it is good to look at the numbers in comparison to others especially in Africa. Below is current data on debt to GDP ratios;

*Debt to gdp ratio*
SA 80%
Egypt 88%
Zambia 96%
Rwanda 61%
Ghana 78%
Angola 120%
Nigeria 35%

From above data, it is clear that though our debt profile is growing, when measured as a % of GDP, we are not in a critical position yet (we have a low enough number). However people rightly argue that we should rather look at debt to Revenue ratio where we are not doing ok with respect to others. Average tax to GDP ratio for Africa is 16.5% but Nigeria has the lowest ratio of 6% (way too low for a big economy like ours). By just pushing our revenue ratio up to 10%, we would have solved most of our immediate revenue problems.

The problem has been our over reliance on oil revenues which mostly encourages a rent seeking, lazy and corrupt system. With fluctuations in oil price as we have seen over the past 7 years, you suddenly find that not diversifying away from oil has been catastrophic. We didn't prepare for this. If you don't do anything, there will be no money to pay salaries, do maintenance activities talkless of doing a single capital project. On the other hand, we can borrow to invest in infrastructure that will support growth. The result will not be seen in 2-4 years but over a longer period if borrowed funds are well spent.

To support its continuous borrowing, this govt has to do the following;

1. Spend borrowed funds wisely on capital projects that will grow and diversify the economy. No room to borrow for recurrent expenditure, embezzle borrowed funds or spend on non impactful projects

2. Widen the tax base by capturing more tax payers, not necessarily taxing the same group more. Just too many persons and businesses are outside the current tax paying bracket. Reform the tax system and rid it of corrupt and deadwoods

3. We have to really take the difficult decision of removing fuel and power subsidies. Spending over N2trn on subsidising consumables is not sustainable no matter how sincere a govt is. Govt can ensure the most vulnerable among us are protected from the impact

4. We need to diversify our economy and get our young population to be more productive

In summary, the problem is not about how much we borrow, it is about how to bump up our revenue, support growth and diversify the economy.

NGpatriot:
Jona earned N51 Trillion, but he did not commission anything, no road, no bridge, no hospital, no refienery, no electricity, nothing, just looting and stealing.

Imagine N51 Trillion in the hands of PMB, railway station go dey in front of my house sef..

Bros no lie, federal roads were rehabilitated eg Abuja lokoja, enugu umuahia, Lagos ibadan to name a few.

Subsidy was paid, higher crude sales means higher subsidy to be paid. That's why the present regime could reduce pump price then but immediately crude raise, they increased it

Railway were done eg Abuja kaduna rail were even at the advanced stage of completion before they left.

Agriculture food price was moderate even during Christmas through CBN/agric ministry input on fertilizer et Al.

Refinery was not completely moribund as it is now with TAM done. This regime has done how many TAM and yet we ain't refining crude.

NNPC wasn't sole importer of petrol as it was an open market.

Jobs were created and middle class was increasing.

Security structure wasn't politicized and insecurities wasn't this bad

Even if they borrowed, it wasn't this bad
Should I continue?

Daroldigits:
This is my opinion: Let them borrow...but one thing is this, voting this same party into power will not make sense at all because there are a lot of secret deeds that they carried out and we need refresh blood and fresh party to takeover so that they can probe all of them.

Your idea is very sensible, That is if Nigerians can have the common sense to put National interests over personal (party) interests. A political party needs to come out with this manifesto of alternating governance among political parties for the sake of probity. End this your sins are forgiven bs and watch the country develop.

CSTRR:
And yet Buhari supporters will say price of oil was low compared to Jonathan.

The money this man has borrowed has surpassed all the money that Jonathan had to work with it.

Below is a summary of revenues accrued from oil and borrowings by GEJ and PMB over their respective 6 years rule:

GEJ earned N51trn in oil revenues and borrowed N3.63trn, total is N54.63trn

PMB earned N26trn in oil revenues and borrowed N17trn, total is N43trn

This man's plan is to sink the country finally.

Buhari and the NASS will all go to jail senate President will be the first.

gambia:
By the time Buhari is done with Nigerians even their zombies will prefer to migrate to somalia.

Onatisi talk am say by the time Buhari finish with Nigerians our neck go long like rope...


@cc: Onatisi

Sheggy13:
Even after almost 7 years, you're still blaming Jonathan. A government is planning to plunge Nigeria into debts that will transcend generations yet Jonathan is all you can see. You Buhari urchins, your cases are irredeemable.

Your Jona plunged us inside debt and looted left and right and did not commission 1 classroom, no road, no bridge, no hospital, no refinery, no electricity and Buhari is still paying the debt Jona took and did nothing with, it was all ok with you, you sat like mumu shouting GEJ till 2015, but the same Jona and his looting and PDP clowns did not commission 1 single project anywhere in the SE, but PMB with his debt already commissioned projects in the SE with many more due to be commissioned.

If you are going to cry, cry over Jona's debt that he achieved nothing with, but we can see on the ground what PMB's debt is giving us, we can see roads, bridges, railway, refinery power projects and so on.

Show us what Jona did with your debt.

Btw, who is paying the hundreds of billion Jona borrowed to pay salaries until his last day in office, PMB.

Who is paying Jona's $500 Million CCTV Chinese loan? pmb.


...but the CCTV loan was another looting and stealing scheme,

I'd love to see 1 single thing Jona and his PDP looting gang did with all the debt they collected, not a single thing, just wholesale looting and stealing..

I'd love to know how N7.9 trillion debt in June 2013 jumped to N12.1 trillion in June 2015, despite the fact that only 10% was allocated to capital expenditure when oil price exceeded $120 per barrel.

And useless Jona was still borrowing to pay salaries, still looting and stealing left and right on top of the N51 Trillion oil earnings he collected.

You people need to go and sit your hypocritical asss somwehre..

As in this people finish this country. Nothing is left. Who be the mumu wey still dey borrow us money self. This is modern slavery. It will talk years before you can pay off this borrowing.

Wow , nice one

Ruining the present and the future yet some still can't see they are defending their destroyer for their own destruction . Congratulations to all BMC.

ALL THESE MONEY BUHA DEY BORROW HE AND HIS NASS WILL USE THEIR RETIREMENT BENEFITS TO SECURED THEM ALL. WE HAVE TOLD YOU PPL TO CONVERT NAS TO PART TIME JOBS AND STOP WASTING MONEY.

proclinician:
The present era of leaders have borrowed 10 times what was borrowed in the past 16 years within 8 years.

No mind that person

NGpatriot:
Your Jona plunged us inside debt and looted left and right and did not commission 1 classroom, no road, no bridge, no hospital, no refinery, no electricity and Buhari is still paying the debt Jona took and did nothing with, it was all ok with you, you sat like mumu shouting GEJ till 2015, but the same Jona and his looting and PDP clowns did not commission 1 single project anywhere in the SE, but PMB with his debt already commissioned projects in the SE with many more due to be commissioned.

If you are going to cry, cry over Jona's debt that he achieved nothing with, but we can see on the ground what PMB's debt is giving us, we can see roads, bridges, railway, refinery power projects and so on.

Show us what Jona did with your debt.

You this bigot again
GEJ built 6 federal universities from the SCRATCH
I repeat
FROM THE SCRATCH
This is just one of the many projects he built during his mediocre presidency.


What of the Almajiri schools ?
Fixing of Benin Ore road
East West road nko

If you say Jonathan did not perform up to expectations
I will agree
But saying this moronic crap about him doing nothing is a lie.
Buhari on the other hand, another vagabond
Is borrowing our country to death
And you are still saying this?

tahiwopreety:
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Hmm my prayers for nigeria...may God intervene for the poor masses,may borrowing borrowing ,the country is damage already.
My questions,were are all the proffessor in economist,all the fraud money collected ,in which pocket does it goes,diezini daimond bra money in which pocket is it in,other recently billions of dollars detected property,by this same diezini were are they..oh God..our leaders are not ready to hears the cries of the masses.oh lord intervene...this cheating and lies are becoming unbearable ....in your name we have prayed.

Amen

Handsum64:
It shall never be well with you and your generation.
If the looters had done something about the dilapidated infrastructures for 16yrs would you have been raving mad now?

And it shall never be well with you and your useless generation.
Why are you ranting like a frustrated rabid dog,now.
Now that the looters didn't do something about dilapidated infrastructure for 16 years,would you be raving mad by now.
Compound-complex sentimental fool,go and check your mental imbalance before you go totally overboard.
Stupid,saliva drooling slowpoke, Oloriburuku,Ajekpako Ajebo,Animal in human form