General0847:

For your info am not ibo, you're too stupid to see the effect of the debt on your miserable life and your poor family.

0monnak0da:

The World Bank is more benevolent than the IMF and Nigeria is one of the largest shareholders of the ADB
The loans are EXACTLY as benevolent as I PUT IT
i.e low interest rates and targeted at specific projects e.g transmission capacity, water etc
That lenders insist on due diligence which is not our forte does not make loans less benevolent
That is the rational thing to do especially in a country with a track record of mismanagement and corruption like Nigria

TheGreenLand:
you are a wise man... dis is the real fact of the matter, unlike those wailing wailers above typing trash

Eteka1:
The loan is meant for major infrastructural development like roads, power, rail, bridges etc. There is nothing wrong in that. Nigeria's debt to GDP ratio is one of the lowest in the world at 30.05%.

tomdon:




Everything is wrong with it Mr man
The private sector investors can do all these infrastructures the government wants to do in a build operate and transfer basis. We would have secured the objectives at no risk and government officials and Apc will not have what to embezzle

Agboriotejoye:

The IMF functions more or less like an organ of the world bank if my memory of international finance serves me well. I remember subsidy removal as one of the conditions for loans as well as currency devaluation. I don't know how benevolent that is

Formularcr7:
You are all mad,all big organization applly for loan to stay afloat in tough time

SarkinYarki:
Buhari is a bad leader

Formularcr7:
You are all mad,all big organization applly for loan to stay afloat in tough time

Kuginzi:

And you're too moronic for only viewing d effect while hiding d good side of it just because of d Hatred u have for him. Your miserable life and your poor family should pray for u because u need heavy Deliverance

Pusyiter:
Mshewwwwww
Is recolonisation not better than the condition we are in this country?

Sirjamo:
No power, no rail, no clean water, inefficient housing, miserable health care, roads are death trap, social service is non - existent, education in comatose, industries are dead, security is in limbo.... If we do not borrow, where are we suppose to find the money to fix all these?

What I think the Senate should do is to make sure that the loans are used to execute developmental projects that have the capacity to impact our lives and also have the potential to raise revenue so that we can be able to quickly pay back.

Eteka1:
The loan is meant for major infrastructural development like roads, power, rail, bridges etc. There is nothing wrong in that. Nigeria's debt to GDP ratio is one of the lowest in the world at 30.05%.

Pusyiter:
Mshewwwwww
Is recolonisation not better than the condition we are in this country?

0monnak0da:


Your assertion about when loans should occur in public finance is based on what .?? The Ten commandments or the Quran?
Loans happen under infinite scenarios no two nations are the same

Eteka1:
The loan is meant for major infrastructural development like roads, power, rail, bridges etc. There is nothing wrong in that. Nigeria's debt to GDP ratio is one of the lowest in the world at 30.05%.

juman:
With our population of over two hundred million peoples, if we borrow hundreds of billions of dollars, with good management we would pay it back easily.

But we don't have good management.
That is the real problem.

0monnak0da:
Loans are good if you can repay/
It is not so long ago that we were begging for debt forgiveness?
How are we going to repay the loans?
Are we borrowing to INVEST in business or anything that has CASHFLOW?
The answer is NO
We are borrowing to invest in SOCIAL projects that are distributed not on the basis of commercial viability but rather on sentimental Federal character" and other political rather than COMMERCIAL considerations
So e.g we are not investing in a refinery, developing an oil field or a venture to enhance the local sale and consumption of gas or any business but with vanity projects that are "good to have" but will not providing any cashflow

A good example is the Abuja Kaduna rail line. Is that a profitable venture?
At the end of the day the loans will be paid for from oil money as we can be certain very few of those development project will generate any money and none of that money would be in dollars

Finally we are currently using 25% of revenue to service existing debt what would that be if we add $30 billion and what would happen if oil price crashes to $40 ?
We cannot afford to borrow $30 billion while subsidizing petrol that is crazy. Any crash in oil price we would become clients of IMF and then we would be forced to remove subsidy

TheGreenLand:
you are a wise man... dis is the real fact of the matter, unlike those wailing wailers above typing trash

General0847:

The dyke that gave birth to a bastard child like you is the person i blame. She should have had an abortion.

Sirjamo:
No power, no rail, no clean water, inefficient housing, miserable health care, roads are death trap, social service is non - existent, education in comatose, industries are dead, security is in limbo.... If we do not borrow, where are we suppose to find the money to fix all these?

What I think the Senate should do is to make sure that the loans are used to execute developmental projects that have the capacity to impact our lives and also have the potential to raise revenue so that we can be able to quickly pay back.

Kuginzi:

The mad man that raped your mother which led to your birth is having a negative impact in your miserable life.

0monnak0da:


Nigeria has a Tax Revenue/GDP ratio of 6% compare to Algeria of 64% and Denmark of 50%
Pakistan 11% India 16% Kenya 18% Ghana 20%

https://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_to_GDP_ratio


GDP is a good basis for measuring the ability to borrow ONLY if there is capacity to extract tax revenue from that GDP

Nigeria has a poor record of extracting tax from its GDP

Let us desist from ignorantly echoing the debt/GDP ratio

So how can we move from 6% to 12% i.e double our tax revenue. Talk is cheap

juman:
With our population of over two hundred million peoples, if we borrow hundreds of billions of dollars, with good management we would pay it back easily.

But we don't have good management.
That is the real problem.

Alday:


The U.S govt currently use about 40 cents out of every $1 it earns as revenue to service public debt.


The Nigerian government however, currently use about 66 kobo out of every N1 earned as government revenue to service public debt.


Debt to GDP ratio is also weighed relative to the ratio of debt servicing to government revenue.

America actually earns more from its assets abroad than it pays to foreign investors.

The CBN sadly currently BORROW USD to try maintain liquidity and stability in the forex market.

What revenue yielding assets or taxes will you use to pay back a fresh $30bn over a number of years when your public revenue sources are dwindling in dollar terms and your current credit ratings and economic situation mean you'd borrow at high interest rates without going to the IMF?

You can always borrow 30 billion in whatever batches when your economic fundamentals have been gotten right and not when you're still imposing a border closure and trying to fix the price of rice.

General0847:

You child of a badly dressed wh.ore.

0monnak0da:
Let us reexamine your logic
If that capacity exists within those 200 million then with "good management" there should be no need to borrow. We should extract the revenue from them quite easily.