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Nairaland Forum / Nairaland / General / Politics / How GEJ/OKONJO Took Nigeria Back To Debt (1524 Views)
Remembering How GEJ Was Stoned During The 2015 Presidential Campaign / Picture: This Was How GEJ Responded When Troops Needed Morale Boost -Reno Omokri / Obasanjo Took Nigeria Out Of Debt But We Are Back In Debt - Aroms Aigbehi (2) (3) (4)
How GEJ/OKONJO Took Nigeria Back To Debt by vedaxcool(m): 10:45am On Sep 13, 2018 |
Nigeria’s total debt stock has again risen to a very high level of N10.4 trillion as at June 2014. The rising debt profile of the country is made up of external debt stock of N1.46 trillion ($9.377 billion),[color=#990000][/color] Federal Government domestic debt of N7.421 trillion ($47.653billion). States in the federation have a domestic debt stock of N1.551 trillion or $9.963 billion. The Federal Government’s share of the rising external debt stands at $6.363 billion. As at December 2013, however, the total stock of external debt was $8.821 billion indicating a rise of $556 million in the first half of 2014. But as at December 31, 2012 Federal Government’s external debt was $4.14 billion as against a total debt stock of both Federal and state governments of $6.5 billion. A break-down of the rising debt profile showed that Federal Government’s external and domestic debts amounted to N8.8 trillion or $57.030 billion as at the end of June 2014. Federal Government borrowing from multilateral Institutions amounted to $3.826 billion while loans from bilateral sources mainly China Exim Bank and Eurobond amounted to $2.537 billion. In the case of states, a total of $2.904 billion was sourced from multilateral institutions, $108.9 million was obtained as loans from bilateral sources, thus making the states’ total outstanding external debt as at June 2013 $3.013 billion. Disclosing these facts in Abuja, Director General, Debt Management Office, Dr. Abraham Nwankwo said that although the debt profile had increased, he assured that the debt remained sustainable at a ratio of 12.51 to the Gross Domestic Product, GDP. The D-G also said that the managers of the nation’s debt would apply more caution in further borrowings in order not to run into the crisis of debt overhang, which the nation once suffered. His words: “The sovereign debt is doing well. Currently our total sovereign domestic debt for both Federal and states and the FCT is about N8.9 trillion and external debt is about $9.38 billion. “Our current debt/GDP ratio is about 12.51 per cent which is much lower than the 56 per cent total public to GDP for countries of Nigeria’s group. However, this is not an indication that Nigeria can afford to borrow without caution. In spite of the re-basing which means we have more capacity to borrow, we are not going to borrow without caution. In fact, we are going to be more cautious, especially because our tax-GDP ratio is low. Many economic agents do not pay their taxes.” Eurobond Dr. Nwankwo said that the Eurobond initiative which commenced in 2011 with the floating of the $500 million Eurobond has positively changed the profiles of Nigerian corporate organisations and their ability to raise long-term funds from the international capital market. The Federal Government raised additional $1 billion from the international capital market in 2013 following which several Nigerian firms, especially banks have also gone to the international capital market to raise funds for their operations. According to him, six companies issued nine bonds within the last one year, from which about $3.4 billion was raised. The DMO boss said his team would ensure that the funds raised from the capital markets both at home and outside were utilised profitably in the interest of the nation’s economy. The D-G disclosed that the funds raised from the Eurobond had been deployed to very critical sectors of the economy, requiring urgent financing to boost the economy, especially, the electricity power, agriculture, solid minerals and the dualisation of the Airport and Kubwa Roads in Abuja. Dr. Nwankwo said that his team has managed the nation’s debt in line with the national priority needs. with a view to creating full values funds borrowed in order to ensure maximum benefits to the economy. His words, “we have tailored the nation’s debt management in accordance with our peculiarities. We have used debt management to leverage development of the private sector and it has helped them to raise money to boost the real sector such as manufacturing, solid minerals, agriculture and electricity power supply. “We have to develop the capital market to develop long-term debt instrument such that rather than what the banks have been used to in terms of given out 91 day loans, we now have debt instruments of up to 20 years. We have made it possible for the companies to float their own bonds in the domestic market such that between 2005 and 2013, 23 companies raised N223 billion which was evidence that that aspect of the transformation agenda of the President Goodluck Jonathan is working. “The implication is that with operators in the real sector of the economy being able to raise long-term funds, they can expand their businesses, increase productivity and create more jobs, across the country, on a sustainable basis”. Dr. Nwankwo said that great opportunities had opened to the Nigerian public and appealed to those creating violence and instability to have a re-think. In his words, “we could have done better if the artificial distractions had been avoided. If we are lagging behind, we are the ones holding ourselves backward.” Public should monitor funds’ utilisation He explained that Nigerians should not policies nor resist state governors who want to access funds from the capital market in order to undertake development projects. According to him the general public, especially civil society groups and the media, should rather insist on the building of institutional frameworks to guarantee the effective and efficient utilization of borrowed funds. https://www.google.com.ng/amp/s/www.vanguardngr.com/2014/08/nigeria-sinks-deeper-external-debt/amp/ Funny how Okonjo due to lack of political will of GEJ led Nigeria back to borrowing not for infrastructure but for paying salary despite high oil earnings. This article was written in 2014. Lalasticala mynd44 4 Likes 2 Shares
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Re: How GEJ/OKONJO Took Nigeria Back To Debt by musttapha(m): 10:47am On Sep 13, 2018 |
K |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Kingosytex(m): 10:47am On Sep 13, 2018 |
Ok! but GEJ is now past tense. so tell us how PMB and adeosun took nigeria into greater debt 5 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Ezenwammadu(m): 10:48am On Sep 13, 2018 |
Then buhari came and multpiled the debt . The dullard has borrowed more than the entire 16 years of pdp combined with nothing to show for . 6 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by LuciferKristi: 10:49am On Sep 13, 2018 |
vedaxcool: The United Nations have already stated that Buhari took Nigeria back to debt. I'd rather listen to the UN than some illiterate, dimwitted, hungry Nairaland BMC Zombie spewing trash because he's desperate for a N30,000 alert. End of. 14 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by richidinho(m): 10:59am On Sep 13, 2018 |
may be Amina Mohammed is a PDP member 3 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Nbote(m): 11:03am On Sep 13, 2018 |
So Amina Muhammed of d United nations who was a Minister before her appointment is also now a wailer abi... Somebody obviously used ur brains for sacrifice 6 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by GavelSlam: 11:06am On Sep 13, 2018 |
LuciferKristi: The DMO knows more about our debt than any other organisation. Okonjo-Iweala and her boss, drove Nigeria into debt without the commensurate infrastructural growth for which this debt was obtained. 5 Likes 3 Shares |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by velocity25(m): 11:07am On Sep 13, 2018 |
I trust zombies,they will always misbehaved 4 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by mightyokwy(m): 11:07am On Sep 13, 2018 |
Zombie will always be a zombie. 4 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Victornezzar: 11:08am On Sep 13, 2018 |
It's official Amina is a pdp member and an ipob yoot These clowns won't cease to amaze us 6 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by ORIENTATION101: 11:11am On Sep 13, 2018 |
Victornezzar:amina was taking about obj regime when obasanjo cleared the debt. ngozi dont have constitutional powers to do so.that is why she failed woefully under Gej 4 Likes 2 Shares |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Victornezzar: 11:13am On Sep 13, 2018 |
ORIENTATION101:When she was working under GEJ we once had a robust economy Dollar was still at 250 Prices of goods were low 4 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by GavelSlam: 11:34am On Sep 13, 2018 |
Victornezzar: What does dollar at 250 mean? Some of you are economic illiterates. It means absolutely nothing if the dollar is even 15,000 provided the means of getting the 15000 is available. 4 Likes 2 Shares |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Victornezzar: 11:37am On Sep 13, 2018 |
GavelSlam:You are the illiterate here Don't u know most products we use here are foreign products Now if I go to the bank to exchange my currency and it doesn't tally with that of the former exchange rate.....I as a businessman.....Won't I also increase my products so as not to be on the loosing end?? 5 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by LadyExcellency: 11:41am On Sep 13, 2018 |
GavelSlam: Your report is hogwash. Tell us what Jonathan's government borrowed from May, 2010 to May, 2015. Stop adding State debts and other institutional support. 5 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by GavelSlam: 11:57am On Sep 13, 2018 |
Victornezzar: So you want us to continue importing so you alone can have a fat income? You don't think it is your import that is putting demand on the dollar hence the price increase. I've said it you lot are economic illiterates. 3 Likes 2 Shares |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Victornezzar: 12:00pm On Sep 13, 2018 |
GavelSlam:Mention some standard products this country is producing please Let the government lead by example first by patronising made in Nigeria goods Then we the citizens can stop importing stop spewing trash please 3 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Nobody: 12:04pm On Sep 13, 2018 |
There is nothing wrong with borrowing if it is for infrastructure. The debt burden within Jonathans last threes years rose by 30%. Compare with present APC 60% in their first 3 years. Lets not forget there some infrastructure to show for the debt during GEJ tenure. For example the rail lines projects which even APC confirm the previous govt completed 95%. If the borrowing was bad under GEJ, must APC continue to worsen Nigeria debt profile. The danger with APC is that it will continue to escalate and most of the projects are only on paper. 1 Like |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by GavelSlam: 12:15pm On Sep 13, 2018 |
Victornezzar: Government should be buying slippers and toothbrush. 4 Likes 2 Shares |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Nobody: 12:16pm On Sep 13, 2018 |
1 Like
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Re: How GEJ/OKONJO Took Nigeria Back To Debt by Nobody: 12:17pm On Sep 13, 2018 |
1 Like
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Re: How GEJ/OKONJO Took Nigeria Back To Debt by Victornezzar: 12:19pm On Sep 13, 2018 |
GavelSlam:lol...I mean standard products 2 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Lipscomb(m): 12:21pm On Sep 13, 2018 |
Okonjo she is a certified criminal. |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Victornezzar: 12:31pm On Sep 13, 2018 |
Lipscomb:Fixed 2 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by GavelSlam: 12:54pm On Sep 13, 2018 |
1 Like |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Victornezzar: 12:56pm On Sep 13, 2018 |
1 Like |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by vedaxcool(m): 12:59pm On Sep 13, 2018 |
[s] LuciferKristi:[/s] There is no debating with an ignoramus |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by vedaxcool(m): 1:01pm On Sep 13, 2018 |
[s] LadyExcellency:[/s] Statements attributed to the DMO is now hogwash? Abeg Ngwakwe no be by force to talk 2 Likes 1 Share |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by GavelSlam: 1:05pm On Sep 13, 2018 |
Victornezzar: Government has bought innosons. You as one of his kinsmen should also patronize him. What clothes are you talking about please? Nigerians wear adire and our local brocade. Up your game and make your costumes wanted by the youth and see whether you wouldn't be billionaire. 2 Likes |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by Victornezzar: 1:10pm On Sep 13, 2018 |
GavelSlam:I want to enter into poultry farming sa No money |
Re: How GEJ/OKONJO Took Nigeria Back To Debt by LadyExcellency: 1:13pm On Sep 13, 2018 |
vedaxcool: Stop this foolish obsession with Ngwakwe. I said itemize the debts. State which Government that took each loan with date. Obasanjo - N,........ Yardua - N .......... Jonathan - N ......... Buhari - N ........ State Governments - N ........... Be more comprehensive 2 Likes |
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