Esseite:


USA has the highest debt, but what is their Debt to GDP?

They have the most robust GDP in the world aswell, their unemployment is at 3% of a more larger population than Nigeria.

ignoramus
use google or sense before you post


usa has biggest debt to gdp ratio in the world with 104.17% debt to gdp as at 2017
they have borrowed more than their gdp.

nigeria has less down 30%
one of the lowest in the world.

Then why is Buhari and his gang flying up and down looking for where to borrow from?

tactius:




Now, in answering your question, I am not here to praise Buhari or balme GEJ or vice versa.

According to Fitch, in 2017, Nigeria needs oil to be at $140 per barrel to have a budget without debt, and that would sustain us....it's called the breakeven price (and it varies from country to country...Saudi needs it at $70, Russia at $99, Kuwait at $45.).

Since Buhari has taken over in 2015...international oil prices have been between $80 and $30 (even at$29 at one point).

Diversifying the economy ?? Yes, but we have fallen far behind in Agriculture (GEJ just managed to get us back to No 5 in cocoa...which was a miracle in itself. Cotton?? Palm oil? Far behind)

Anyone who thought that whoever won in 2015 was going to run an economy free of borrowing and free of debt was in dreamland.


Now, where I bash Buhari is that we spend too much on subsides. These have a bad effect on the amount of cash government has available to spend

Still...let's commend him for saving. GEJ....despite having oil prices as high as $120 and above did not save. And that is part of the reason why we have econonic crisis


EVEN then....Buhari and GEJ both have one problem. Nigeria is a poor nation, we waste the little money we have, and we are not ready to make the hard choices needed to get off oil. Which is cutting subsides on oil and power so as to attract investors who would generate profit, create jobs, and straighten our economy...enabling us to stop relying too much on oil

I dont think the bulk stops at GEJ, you seem to be very conversant with subsidies and its payments..

Do you think Buhari can manage subsidy payments with crude at $120?, or even at $140 which we alledge.. that goes to show fuel should ordinarily be sold at N400 or more at such amount of crude. But we are usually quick to blame a govt that handled it perfectly without breaking a sweat on our bodies.

Honor10:
Imagine GEJ was still the president, this external reserve will av become debt, how GEJ manage to deplete the external reserve will the highest oil sale ever is beyond me. Education is not leadership. SMH!

wrong... all that story is hogwash.. our reserves would have still improved and there would have been more jobs for everybody...

Esseite:


What is your debt to GDP or reserve level?

- You debt is currently at $65bn and climbing, the APC knows they can only deceive the illitrates who dont have access to news and figures.

The last election showed that the infomed and elites can not be deceived with misleading headlines.

What was the debt profile during GEJ's tenure?

This sharp gain is driven by increase in crude oil price and huge dollar injection by foreign portfolio investors seeking to take advantage of double digit interest rates on Nigeria’s fixed income instruments, namely treasury bills and FGN bonds, to maximise returns on their investment.

The increase in crude oil price part is understood. Higher prices imply higher dollar revenue so there's more forex available.

On Foreign Portfolio Investments, we can keep deceiving ourselves. So we now categorize debt as reserves. Foreign portfolio investors are buying Nigerian treasury bills and FGN bonds (in other words, debt) and we are claiming these as reserves. This is money we will have to remit to the investors with double digit interests at a future date. In what universe do you count your debts as reserves? Nigeria should as well have claimed in 2005 that the debt owed to the paris club was reserves, so we asked the paris club to forgive our reserves. Hilarious. Or am I missing something?

Noise making from a useless government.....how does this translate to food on a poor man's table.

Reference:


But higher reserves is meant to stabilise the naira in favour of imports..... such as food imports you criticise. The high interest rates that draw FPI's into he economy also kills off local industries. So you need to think deeply and carefully before a blanket support or derision of this situation. It is clearly a doube edged sword.

In developed economies interest rates and inflation is more important than reserves but this happens where the local currency floats and the economy is well diversified with a viable export engine. A quest for higher reserves though laudable remains essentially a socialist policy. In Nigeria it is the antithesis of a diversified, export driven, modern economy.

My brother, thank you. You have spoken well. But let me tell you some thing else - the reserves means a lot more to us than you think - it is our survival money, our dignity, our hope and of course our means to this world. The currency of the developed economies are freely floating and 'reserve currencies' because they are legal tenders in the international market. Naira is a very soft currency which requires support (it has to be 'reserves-backed' to command any meaningful value). As a poor country like Nigeria sometimes you have to make very harsh choice (a very poor father who has too many children compared to his income ultimately has to watch his children go hungry, a very harsh choice). We cant continuously look out for the common man who is failing himself by putting himself in impossible circumstances. The government has no choice but to look out for the interest of the investors and people of means - the people that can actually change the circumstances of the poor fellow.
The better choice is to build our reserves to make our country attractive to investors while we rebuild our agricultural and infrastructural capacity. Those who choose to create more mouth than their income can support should be O.Y.O and last on the list of consideration.

Pentasoft1978:
Noise making from a useless government.....how does this translate to food on a poor man's table.

I will keep repeating - to hell with the common man! The common man in Nigeria are senseless which explains why the ranks or population of the common man is growing exponentially year after year.

Reserves of hard currency cannot be spent 'feeding' people who are multiplying but economically unproductive. The common man should open his eyes and stop increasing the population uncontrollably.

GiantParrot:


The increase in crude oil price part is understood. Higher prices imply higher dollar revenue so there's more forex available.

On Foreign Portfolio Investments, we can keep deceiving ourselves. So we now categorize debt as reserves. Foreign portfolio investors are buying Nigerian treasury bills and FGN bonds (in other words, debt) and we are claiming these as reserves. This is money we will have to remit to the investors with double digit interests at a future date. In what universe do you count your debts as reserves? Nigeria should as well have claimed in 2005 that the debt owed to the paris club was reserves, so we asked the paris club to forgive our reserves. Hilarious. Or am I missing something?

Yes, you are missing something!

They are buying Naira assets and so will be repaid in Naira!

Remittance-able or not- is at the discretion of the foreign investor and not a concern for the FG or the central bank. Assuming the CBN or the FG has not guaranteed convertibility.

Fool how much debt do you think that your country is into?Nigeria has no savings at it stands now. Rather we are more in debt

Honor10:
Imagine GEJ was still the president, this external reserve will av become debt, how GEJ manage to deplete the external reserve will the highest oil sale ever is beyond me. Education is not leadership. SMH!

Esseite:


USA has the highest debt, but what is their Debt to GDP?

They have the most robust GDP in the world aswell, their unemployment is at 3% of a more larger population than Nigeria.

Okrika illiterate!

chibuzorAbia:



Yes, you are missing something!

They are buying Naira assets and so will be repaid in Naira!

Remittance-able or not- is at the discretion of the foreign investor and not a concern for the FG or the central bank. Assuming the CBN or the FG has not guaranteed convertibility.

Thanks for explaining. I now understand better.

This doesn't seem like something to be proud about.

jullidee2006:
is it sustainable?

Yes

Honor10:


Thrash

Sure, that's what you are

chibuzorAbia:


Illiterate. Please do the country a favour, don't have children.

You should look the word up before you use it.

If it makes sense to you to have such amounts and have the country on the brink of war and desolution.
Then the problem of Nigeria is literate morons like you.

Dami12345:
This is just stupid.
Like saying oh look, I have 100milliin in my bank account. But suffering and drinking garri day to day.

Try afford yourself some education about stuff like this. Don't always let your stomach rule your head. If we tow your line, Nigeria wouldnt be far from Venezuela lane.... more reason why GEJ had always been your hero

demitola:

Try afford yourself some education about stuff like this. Don't always let your stomach rule your head. If we tow your line, Nigeria wouldnt be far from Venezuela lane.... more reason why GEJ had always been your hero

Never liked him.
I think its until you get kidnapped before you understand what am saying. Oh well they do say experience is the best teacher.

Honor10:



no, am blaming him for ur own failures, oya kill urself.

look at youuu......stewwwpid!!!