₦airaland Forum

malali:
To simplify it we are borrowing $10,000 dollars today to pay back the $100 dollars we borrowed yesterday.

We have removed oil and petrol subsidy, but now we are borrowing so much money, we now need $5 billion to service the loans, thats to pay the interests on these loans, not necessarily paying the main loan itself.

So technically instead of the citizens enjoying the petrol subsidy and the Forex subsidy. The Nigerian government is now using the money to service loans collected and they can spend the loan anyhow they desire.

So Nigeria is not saving any money by removing petrol and forex subsidy because all that money has officially now gone to debt servicing

SoftSport:
Let’s be honest, what president Tinubu is doing isn’t easy, but it’s necessary. For years Nigeria spent billions on fuel and dollar subsidies that didn’t really help regular people. Most of that money went into the wrong hands, smugglers, black market traders, and the rich. Tinubu stopped that.

Now, yes, we are borrowing, and we’re paying interest on old loans. But at least the money from removing subsidies isn’t being wasted the old way. Tinubu is trying to use it to fix things long-term, like roads, electricity, and jobs.

Change is painful at first, but it’s better than pretending everything is fine while the country keeps sinking. We just need to stay patient and hold the government accountable to spend wisely. Tinubu has taken a bold step many leaders were too scared to take. Let’s give it time.

RealityKings1:
You write so well.

SoftSport:
If President Tinubu is making tough changes to fix the economy, like removing fuel subsidy and fixing the exchange rate, is it fair to call borrowing for development a scam?

chatinent:
It's good they are offsetting some...at least.

They are not offsetting anything. LOL....You borrowed 100naira last year then this year you borrowed 10000naira and paid the 100naira and spent the remaining 9900 naira. Thats the scam they are playing. Then you announce. We have paid all the Loan from last year...lol

malali:
Good question you have asked !!
Let me tell you where the scam is....all that money we have saved from petrol and forex subsidy is now being used to service loans. Loans that are spent at entirely their discretion. Loans that are not spent on revenue generating investments.

Would you rather buy petrol at 200naira a litre and buy $1 at 400naira or you prefer to have a road leading from Lagos to Calabar ??
Choose one.

SoftSport:
I hear you, but let’s look at it another way. For many years, Nigeria was spending too much money on things like cheap petrol and keeping the dollar low. That wasn’t helping the country grow. Tinubu came in and said, “Let’s stop this before it gets worse.”

Yes, we are using some of that saved money to pay back old loans but those loans didn’t start with him. He’s just cleaning up the mess. And now, with the savings, we can start using money to build roads, schools, and other important things.

It’s not easy, and things feel tough now, but sometimes you have to go through hard times to get to better ones. At least this government is trying to fix the root of the problem instead of hiding it.

malali:
Good question you have asked !!
Let me tell you where the scam is....all that money we have saved from petrol and forex subsidy is now being used to service loans. Loans that are spent at entirely their discretion. Loans that are not spent on revenue generating investments.

Would you rather buy petrol at 200naira a litre and buy $1 at 400naira or you prefer to have a road leading from Lagos to Calabar ??
Choose one.

Ofemannnu:
From subsidy removal,Tinubu has tripled the allocations of the govs,most are executing projects right,left and centre without borrowing,most are paying their debts,the FCT is experiencing unprecedented projects and a whole lot of other goodies.

Will you rather go back to borrowing $10,$20 billion dollars to pay subsidy and service the debts with all your revenue?
You love fake,cosmetic economy?

malali:
Dont mention the governors. They are collecting loans far greater than their IGR. They are collecting loans to build roads. Will roads generate revenue and jobs ? Using the money to buy bulletproof exotic cars.
With no fear of prosecution because they all saw what happened to Yahya Bello.

malali:
"Yes, we are using some of that saved money to pay back old loans but those loans didn’t start with him. He’s just cleaning up the mess. And now, with the savings, we can start using money to build roads, schools, and other important things."

In 2 years he has collected new loan of $13.5 billion dollars making our total debt 45 billion dollars plus Buhari's own
If he spends 8 years and he collects that amount ever 2 years thats 54 billion dollars Add this to 45 billion
We are looking at a 100 billion easily.

Okay he paid 300 milion in 2 years, after 8 years if he continues paying 300 million every 2 years he will pay 1.4 billion dollars.

If you subtract 1.4 billion from 100 billion, you have 98.5 billion approximately.

At this rate Tinubu will leave us with the highest Debt we have ever had in history.

SoftSport:
Let’s be honest, what president Tinubu is doing isn’t easy, but it’s necessary. For years Nigeria spent billions on fuel and dollar subsidies that didn’t really help regular people. Most of that money went into the wrong hands, smugglers, black market traders, and the rich. Tinubu stopped that.

Now, yes, we are borrowing, and we’re paying interest on old loans. But at least the money from removing subsidies isn’t being wasted the old way. Tinubu is trying to use it to fix things long-term, like roads, electricity, and jobs.

Change is painful at first, but it’s better than pretending everything is fine while the country keeps sinking. We just need to stay patient and hold the government accountable to spend wisely. Tinubu has taken a bold step many leaders were too scared to take. Let’s give it time.

SoftSport:
I see where you're coming from, but let's not forget that Tinubu is trying to fix years of bad decisions and economic mismanagement. Yes, there’s borrowing, but it’s necessary to kickstart major projects like infrastructure, which can help the economy grow and eventually reduce debt. If he can use the money wisely to improve the country, it’ll pay off in the long run, even if it seems tough now. Sometimes you need to take short-term hits for long-term gain.

Ofemannnu:
From subsidy removal,Tinubu has tripled the allocations of the govs,most are executing projects right,left and centre without borrowing,most are paying their debts,the FCT is experiencing unprecedented projects,Tinubu has cleared the 7 billion dollar log,he has settled the 30 trillion naira ways and means and a whole lot of other goodies.
That is prudence.

Will you rather go back to borrowing $10,$20 billion dollars to pay subsidy,borrowing money to pay workers like President was doing in 2014 and servicing the debts with all your revenue?
You love fake,cosmetic economy?