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Nairaland Forum / Nairaland / General / Politics / Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request (29070 Views)
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Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by 0monnak0da: 10:23am On Nov 30, 2019 |
juman: I think it is only children that reason in Good or Bad binaries No one is saying borrowing is bad What we are saying is let us debate Nigeria's situation HOW MUCH can we afford to borrow Or is there no limit ? This is not about good or bad but analysis If I earn 1000 naira a month how much can I afford to spend on debt servicing? If I am already using 530 naira a month to service debt how much more can I afford? 1 Like 1 Share |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by 0monnak0da: 11:01am On Nov 30, 2019 |
A lot of people who are commenting here have no clue how debt financing works It does not work in the same way as when you borrow from your friends and then you pay when you have money NO Once you borrow you have to start paying back almost immediately in instalments e.g if you borrow 1000000 @ 9% over 10 years then every year you have to pay 158440 and 1584400 in total by completion https://www.calculator.net/loan-calculator.html?cloanamount=1000000&cloanterm=10&cloantermmonth=0&cinterestrate=9&ccompound=monthly&cpayback=year&x=49&y=13#amortized-result Therefore if your income LESS expenses is less that 158440 you CANNOT AFFORD the loan It is a very simple actuarial operation to calculate what you can or cannot afford The argument about what you think YOU NEED in terms of infrastructure is irrelevant what matters is what you can afford This is called servicing If you do not service your debt when due there are penalties and interest on the penalties We have been there before in the 80s when we became clients of the IMF some may be too young to know It is not about whether borrowing is good or bad but can we service the debt and continue to meet other obligations If government is transparent let them put all the facts in the public domain so we can all debate objectively 1 Like |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by banio: 11:43am On Nov 30, 2019 |
30 billion dollars !!!!. What is our foreign reserve ?. We should not take loan higher than 10% of our foreign reserve. Guess we have taken loans already, which should amount to above 10% of our foreign reserve. So Senate should think it well, because we are all in this shit together. |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by 0monnak0da: 11:51am On Nov 30, 2019 |
banio:I think you are mixing things here Foreign reserve is totally irrelevant A lot of people make this mistake, too often quite understandably Foreign reserves are NOT government funds rather they are CBN funds and so once again TOTALLY irrelevant to the loan decisio. That is not to say that I agree with the loan but let us not mix things The CBN is a Bank it has liabilities(debt) and assets. Among the liabilities of the CBN are ALL the Naira notes in circulation while foreign reserves are its assets. It is those assets that make the Naira to have value . Without assets then the Naira is just PAPER so foreign reserves do not have any role in government spending They belong proportionately to all the creditors of the CBN which everyone holding naira in their pocket is What is more relevant to the loan decision is Government revenue, existing government debt and expenditure I have no clue where you get the 10% of foreign reserve as a relevant variable driving borrowing decision |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by urahara(m): 12:18pm On Nov 30, 2019 |
0monnak0da: Where are foreign reserves stored in ? |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by 0monnak0da: 12:20pm On Nov 30, 2019 |
urahara:Warehouse Guy leave matter stick to what you know let us not derail the thread Foreign reserves are not government money that is all that matters ,they have no role in fiscal activities |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by urahara(m): 12:21pm On Nov 30, 2019 |
0monnak0da: I'm only trying to learn , not to start an argument |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by Pusyiter(m): 1:46pm On Nov 30, 2019 |
Good analysis, but it still boils down on my point. If we disagree to implement as posited, what the hell are we then talking about? grandstar: |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by Pusyiter(m): 1:48pm On Nov 30, 2019 |
It is not enough to just type shit when you do not have a debate to support your inadequacies else, you are more foolish stormborn28: |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by 0monnak0da: 4:09pm On Nov 30, 2019 |
urahara: Learning is not cheap, it costs money. you need a paradigm shift from the idea that money can be "stored" and about what money really is. When you do a transfer with your phone or a POS transaction where is the money stored? Money nowadays is essentially a binary i.e a debt and a credit (two side which cancel each other out which is enforceable by law, treaty etc. Very soon all money may be electronic with no paper at all . I think you really need to grasp that concept properly.# The bank notes we carry around in our pockets create the illusion that money is a physical thing . It is not. Those notes are simply a contract and they only have value if the issuer has Assets that back them up Those assets in the case of the CBN may include similar notes or PAPER from other issuers, foreigh reserves SO IF GOVERNMENT SPENDS FOREIGN RESERVES IT IS EFFECTIVELY PUTTING ITS HANDS INTO THE POCKETS OF ANYONE HOLDING NAIRA THE REAL OWNERS OF THE RESERVES If you buy Treasury bills of the CBN that is money. In the same way the CBN may buy similar instruments from other jurisdictions and so that is one way of "STORING" foreign reserves The key issue is that there is confidence in the instrument and it is legally enforceable so the question of "storing " it should not arise it is not rice or cement |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by General0847: 5:00pm On Nov 30, 2019 |
Kuginzi:You literally have no lineage, best is you can trace your lineage to a who.re house where your mother worked. |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by edupedia: 5:23pm On Nov 30, 2019 |
sulaak: Mr Wailer, your $88b debt is fake. Go to the Debt Management Office website and stop misleading yourself and others. |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by Kuginzi: 7:02pm On Nov 30, 2019 |
General0847:I'm sorry, you've wasted your time writing meaningless comment. Pls try & improve on your comments for easy assimilation |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by General0847: 11:16am On Dec 01, 2019 |
Kuginzi:The thing is your pea-sized brain cannot generate enough power for you to assimilate anything meaningful. You're mentally disabled. |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by Kuginzi: 2:12pm On Dec 01, 2019 |
General0847:You're diagnosed with brain cancer plus severe mental disorder. Pls visit your psychiatrist |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by stormborn28(m): 8:29pm On Dec 01, 2019 |
Pusyiter:the loan ($1billion) that was taken to fight Boko Haram by this government, how far was it used? I believe private pockets... How do you trust a government that can not guarantee judicious use of our common wealth... So I don't see any reason why that loan should be granted by Senate.... The useless government should rely on what it could generate simple |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by dokie: 8:58pm On Dec 01, 2019 |
Sirjamo: How many years do you need to live in nigeria to know that less that less than 40% of that amount will actually be utilized in the real sense of the word? what the government needs to do if they are truly willing to upgrade the infrastructure level is to get the lenders to build the infrastructures themselves. That way, no nigerian will have access to the funds. We shall only supervise to ensure that all the projects meet the specifications. Anything other than that is just wickedness on the part of the buhari and his henchmen. See, support get levels. This buhari you people are supporting up and down the whole place has lived long enough, and if he dies today, he wouldn't have been shortchanged by God. If he continues on this path, you and i that will be here long after he has gone will be suffering needlessly for it. |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by Pusyiter(m): 7:58am On Dec 02, 2019 |
That is my point also..... stormborn28: |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by General0847: 3:15pm On Dec 02, 2019 |
Kuginzi:Child fiddler, your days as a paedophile are numbered. |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by Uchek(m): 2:44pm On Dec 11, 2020 |
"Nigeria's debt to GDP ratio is one of the lowest in the world at 30.05%." This metric is meant for developed countries and developing countries with the right economic and political foundation - not Nigeria with no political or economic direction. Eteka1: |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by Formularcr7: 6:52pm On Jul 29, 2023 |
dante0147:your father is a fool, all developed countries borrow for infrastructure |
Re: Shehu Sani: Why We Rejected Buhari’s $30bn Loan Request by dante0147: 6:50am On Jul 30, 2023 |
Formularcr7: From 2019 till now you never still get sense… You foolish hungry waif… Your father should have saved him self the embarrassment of having a destitute like you with only one condom all this unnecessary stress won’t arise… |
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