₦airaland Forum

mrvitalis:
One thing I have always said is if I ever decide to be governor or president Economics would be made compulsory in all schools from SS1 to university 200 level...

Volume of debt or size of debt is not an issue
Ability to repay is the issue

Someone can owe 2 million and be worse than someone who owe 10 billion

In nigeria the issue we talk about is our revenue to debt servicing is too high..

We need to increase revenue, sadly the only way to do that is to borrow more but use it for what would generate revenue or ability to pay back the loan

So borrowing and using it to build road, bridge, rails, and the reat feel good projects is foolishness... Very big foolishness

And that's what APC have been doing since

mrvitalis:
One thing I have always said is if I ever decide to be governor or president Economics would be made compulsory in all schools from SS1 to university 200 level...

Volume of debt or size of debt is not an issue
Ability to repay is the issue

Someone can owe 2 million and be worse than someone who owe 10 billion

In nigeria the issue we talk about is our revenue to debt servicing is too high..

We need to increase revenue, sadly the only way to do that is to borrow more but use it for what would generate revenue or ability to pay back the loan

So borrowing and using it to build road, bridge, rails, and the reat feel good projects is foolishness... Very big foolishness

And that's what APC have been doing since

Paramount01:
Tinubu met it at 96% ,now is now 56% ,yet you are saying he is spending on frivoluuse things

Paramount01:
Yes, infrastructure can significantly increase the revenue of a state. Well-planned and well-maintained infrastructure can:

1. *Attract businesses and investments*: Modern infrastructure, such as roads, airports, and seaports, can make a state more attractive to businesses, entrepreneurs, and investors, leading to increased economic activity and revenue.
2. *Boost tourism*: Infrastructure like hotels, resorts, and recreational facilities can attract tourists, generating revenue from hospitality, transportation, and other services.
3. *Increase property values*: Quality infrastructure can increase property values, leading to higher tax revenues for the state.
4. *Improve agricultural productivity*: Irrigation systems, storage facilities, and transportation networks can enhance agricultural productivity, leading to increased revenue from agricultural exports.
5. *Enhance industrial productivity*: Infrastructure like industrial parks, logistics hubs, and energy systems can increase industrial productivity, leading to higher revenue from manufacturing and exports.
6. *Reduce transportation costs*: Efficient transportation infrastructure can reduce costs for businesses, making them more competitive and increasing revenue.
7. *Create jobs*: Infrastructure development can create jobs, both during construction and in the long term, increasing tax revenues and reducing unemployment.

Examples of infrastructure that can increase state revenue include:

- Transportation infrastructure (roads, highways, airports, seaports)
- Energy infrastructure (power plants, transmission lines)
- Water infrastructure (dams, irrigation systems)
- Telecommunication infrastructure (fiber optic cables, cell towers)
- Industrial infrastructure (industrial parks, logistics hubs)
- Tourism infrastructure (hotels, resorts, recreational facilities)

Overall, investing in infrastructure can have a multiplier effect on a state's economy, leading to increased revenue, economic growth, and improved quality of life.

Alsenora:
Constructive criticisms are welcome to guide a sitting government administration but not the one that reveal a crass lack of understanding, mischief or basic understanding of economic principles.

mrvitalis:
One thing I have always said is if I ever decide to be governor or president Economics would be made compulsory in all schools from SS1 to university 200 level...

Volume of debt or size of debt is not an issue
Ability to repay is the issue

Someone can owe 2 million and be worse than someone who owe 10 billion

In nigeria the issue we talk about is our revenue to debt servicing is too high..

We need to increase revenue, sadly the only way to do that is to borrow more but use it for what would generate revenue or ability to pay back the loan

So borrowing and using it to build road, bridge, rails, and the reat feel good projects is foolishness... Very big foolishness

And that's what APC have been doing since

Ofemannnu:
.

Slytiger:
Source: IMF

adonainana:
So you don’t need infrastructure to grow the economy instead you just watch it and do nothing to facilitate trade Roads

Hope you went to school at all

Also there is a big difference between exchange currency rates and the growth of an economy

Year in year out Nigeria economy expands and grows it’s the number 1 in Africa for this

This is completely different from how much Naira is changing for dollars

Two completely different things

Misterone:
Oga, you know nothing about economics. The first rule of governance is that : Government have no business in business. Government is all about welfare. Business is all about profit.
Now, how do you tax your citizen, use the money to create a business then request for profit as a means of revenue generation? That is criminality.
Building or construction of roads and bridges is a means of generating revenue. First, the workers pay tax. Second, roads bring about development. An access road to a land increases the price of the land, it also enhance ease of doing business in the area. This encourages business and the businessman will pay tax. Revenue is created.

LegendHero:
Lol then you’ll probably pour your money inside a black hole.

First we lack storage system for our agricultural produce. Why do we lack storage, because of low power supply and high cost of energy alternative. You need to build large scale storage cold room system first to even preserve your output to sell to market. Security is also a very huge factor in Nigeria today because if you’re trying to silo your farming to multiple regions and get more people into it, yawa fit gas.

One important thing you haven’t told us is that @96% debt servicing and crude sold into the future; if you get someone to borrow you $20bn and spend it on nothing beside infrastructure/energy/and etc, how exactly will other segment of the economy respond when your loan ground the other side and the germination period is over 3 years for your $20bn to even start reaping benefit?

PlushyRealtor:
Thank you for educating me on this bro. I just learnt something good to be honest

2special:
Most people will be excited while some will be disappointed with this News.

Slytiger:
Source: IMF

mrvitalis:
Lmao the 1 billion dollars rail line Lagos Ibadan project name one company it brought

obyno82:
Yes I said what I said. The debt to revenue is still high. Our earnings are being used for debt servicing. What he did was simply use devaluation and inflation to reduce spending by the public. So it gives a semblance of reduced rate of debt servicing, rather it is the masses that are suffering. This is just manipulation of numbers he is doing.

Slytiger:
Source: IMF

123yes:
I did not see Nigeria on the list. Thanks to baba Tinubu OBJ.

mrvitalis:
I have said it over and over go through my post

Paramount01:
Lolz. Will investors mention they are investing because of one particular infastructure.if Infastructure has not been helpful for investments why did NSIA Invested 10billons in Lagos and not Anambra? Why did IFC invest in Lagos and not kwara? Nobody want to invest where there is no good roads

mrvitalis:
So government borrow money to build roads in your city.. How would government get the loan to pay back

Misterone:
Through taxation , tolling, etc. But not by selling the road to the highest bidder

Paramount01:
Wait, did our revenue increase? Did we owe in dollar or naira ,so how does devaluation affect debt,is not clear

mrvitalis:
So you build road then tax what? Give me a practical example let's be realistic

Misterone:
Go and reread my first writeup

mrvitalis:
Because of the buying power of lagos not the infrastructure

Akwa Ibom has one of the best infrastructure but depend on ABA for basic supply

Paramount01:
After Lagos the next most populated state is Kano, yet Kano never received the type of investment like Abuja ,oyo,ogun.if we should go by what you say ( population)

Paramount01:
Wait, did our revenue increase? Did we owe in dollar or naira ,so how does devaluation affect debt,is not clear

Dreal1247:
APC is a cancer sent to destroy Nigeria, but it will end up destroying itself and the wicked sympathizers. There is no peace for the wicked. And the wicked shall never go unpunished.