₦airaland Forum

Amotolongbo:
There is no nation that is debt free except kuvukinla island.

The point here is that let every single penny borrowed be performing.

Like you have forgotten that when you borrow, there is going to be interest accruing on these loans over time.
Think of this, if Obasanjo hadn’t ridden off the loan in 2005, do you know how much interest it would have accrued now?
Against which country?
Definitely Nigeria.

So you think that is better for our economy?
Please when you wanna look at any step taken by any administration, don’t do with the spectacle of negativity alone.

Xisnin:
Dangote owes some banks money but that doesn't mean debt is good for a street hustler.

Those country with debt aren't proud of it even though they are several times more prodcutive.
Their revenue majorly comes from tax not "resources"
Taking loans to build subsidized rails is insanity in a nation where the government already subsidizes
50% of electricity consumption.

This reminds me of Osun where 90% of its allocations are now used to service debts for various infrastructures
that have already began degrading.



It is no accident that OBJ had the highest growth rate period since 1999.

Buhari is trying to criple the next administration with excessive debt when oil is losing status to renewables.

Amotolongbo:
You don’t have to justify Nigeria’s below performance by citing these nations.

Worth of a country is the value of debt and asset owned by the country.
Ideally, the debt of a country should be approximately equal to the asset of the country.

In a situation whereby a country has more debt than the asset, the country is nothing but a failed state.

The developed nations of the world, US, England and Germany mentioned are examples of nations having almost equal asset and debt

seunmsg:
The part in bold is very correct. However, how many Nigerians will agree with you that government is doing too much by subsidizing electricity? Just last Monday, NLC almost declared a national strike that would further cripple the economy just to force government to return subsidy to electricity and petroleum products. Nigerians love subsidy and any government that attempts to force us to pay appropriately for social goods and services will be very unpopular.

Even at that, should we just fold our hands and refuse to build the needed infrastructure? Is it not better to borrow to build now and then force citizens to pay appropriately for the services? The Buhari that I know is very firm. Just like he’s doing with petrol and electricity, he will ensure Nigerians pay appropriately for rail services once all the projects are completed.

Obasanjo had the highest GDP growth rate because he was fortunate to be president at a time when crude oil prices was very high and there was no major crisis hitting the world economy like we are witnessing today. In addition, he was not a wasteful leader like Jonathan.
We’ve seen the 2nd quarter GDP of most of the developed countries and they all took a big hit. Nigeria even fared better compared to most countries. Buhari is not perfect but he’s not as bad as some of you are trying to paint him.

History555:
Fashola has forgotten that Nigeria was paying approximately 3billion dollars interest on its loan anually. That's just interest on loan not actual loan repayment. Obj paying 12billion dollars achieved two things. Cancellation of 18billion dollars and saving the payment of 3billion anually. If he did not do that, Nigeria will still be paying 3billion anually assuming the interest remains constant which from 2006 would have seen us paying 52billion dollars to date and still have 30billion initial loan.

CompassGist:
Minister of Works and Housing, Mr. Babatunde Fashola, has called out the  former President Olusegun Obasanjo, for been responsible for Nigeria’s low infrastructural base, the ex-Nigerian leader should have invested in capital projects across the country.




The former Lagos State governor, who has been minister under the present administration since its inception in 2015, spoke during an interview on Channels Television.
In 2005/2006, the Paris Club wrote off $18 billion or 60 per cent of the $30 billion Nigeria owed the cartel, after months of negotiations, a development touted as one of the biggest achievements of the Obasanjo administration.

Fashola said that rather than deploy the funds prudently, the Obasanjo government decided to pay the country’s creditors to the detriment of the country, insisting that today, Nigeria has gone back to borrowing because the governments in the past ignored investment in infrastructure.


Readmore https://compassgist.com/obasanjo-shouldve-built-rails-roads-instead-of-12bn-debt-cancellation-fashola/

rottennaija:
The argument is, if the money had been used to build infrastructure across the country, rails, sea port, power, refined petroleum (if not swallowed by a few people) then we would more money coming in terms of forex, we would have reduced cost of transportation leading to lower cost of goods and services, more jobs etc.

Amotolongbo:
Leave unwarranted assumption and face the reality.

The billions that were spent, what have been the effect on the nation’s economy.

$16billion was spent on electricity at the same time, how has inproved the supply?

It was better paying off the debt which we could see, making Nigeria debt free at that time. Rather than spending the billions frivolously on things we wouldn’t see the effects.

seunmsg:
Yeah, we could as well stop spending money on anything in the country. Let’s just keep paying debt and doing nothing. Since people stealing money is now a good justification for not spending to build infrastructure.

seunmsg:
The part in bold is very correct. However, how many Nigerians will agree with you that government is doing too much by subsidizing electricity? Just last Monday, NLC almost declared a national strike that would further cripple the economy just to force government to return subsidy to electricity and petroleum products. Nigerians love subsidy and any government that attempts to force us to pay appropriately for social goods and services will be very unpopular.

Even at that, should we just fold our hands and refuse to build the needed infrastructure? Is it not better to borrow to build now and then force citizens to pay appropriately for the services? The Buhari that I know is very firm. Just like he’s doing with petrol and electricity, he will ensure Nigerians pay appropriately for rail services once all the projects are completed.

Obasanjo had the highest GDP growth rate because he was fortunate to be president at a time when crude oil prices was very high and there was no major crisis hitting the world economy like we are witnessing today. In addition, he was not a wasteful leader like Jonathan.

We’ve seen the 2nd quarter GDP of most of the developed countries and they all took a big hit. Nigeria even fared better compared to most countries.

Buhari is not perfect but he’s not as bad as some of you are trying to paint him.

seunmsg:
Mention one major country in the world that is debt free?

After the Paris loan repayment, how did our economy fare? What did we benefit from the loan repayment?

Amotolongbo:
You don’t have to justify Nigeria’s below performance by citing these nations.

Worth of a country is the value of debt and asset owned by the country.
Ideally, the debt of a country should be approximately equal to the asset of the country.

In a situation whereby a country has more debt than the asset, the country is nothing but a failed state.

The developed nations of the world, US, England and Germany mentioned are examples of nations having almost equal asset and debt

obaaderemi:
Brilliant point succinctly put.
Are you an economist, and also the one in your dp. Beauty + Brain if so.

Okuda:
this fashola na foool. does he not know what a debt free countrys economy look like? do you know what benefits the being a debt free nation has on the entire outlook of a country?

seunmsg:
I agree totally with Fashola. We cannot develop without building massive infrastructure all over the country. The only thing we got from the Obasanjo’s loan repayment is the accumulation of more loans by subsequent governments.

If the money that was used to pay off the Paris loan was used to build the Railway lines that Buhari is now building all over the country, we would have been more developed than we are right now.

chamboy:
there's never a debt free country with progression even Chinese and American owe debt.

Okuda:
because there isnt a debt free country doesnt mean that there should not be one. Nigeria was debt free and thats a good thing!

Okuda:
because there isnt a debt free country doesnt mean that there should not be one. Nigeria was debt free and thats a good thing!

kufreabasi86191:
this fashola na foool. does he not know what a inindebtednessedness freedomdom agha recession look like? do you know what benefits the being a inindebtednessedness freedomdom national has on the entirety forecast of a region?

CompassGist:
Minister of Works and Housing, Mr. Babatunde Fashola, has called out the  former President Olusegun Obasanjo, for been responsible for Nigeria’s low infrastructural base, the ex-Nigerian leader should have invested in capital projects across the country.




The former Lagos State governor, who has been minister under the present administration since its inception in 2015, spoke during an interview on Channels Television.
In 2005/2006, the Paris Club wrote off $18 billion or 60 per cent of the $30 billion Nigeria owed the cartel, after months of negotiations, a development touted as one of the biggest achievements of the Obasanjo administration.

Fashola said that rather than deploy the funds prudently, the Obasanjo government decided to pay the country’s creditors to the detriment of the country, insisting that today, Nigeria has gone back to borrowing because the governments in the past ignored investment in infrastructure.


Readmore https://compassgist.com/obasanjo-shouldve-built-rails-roads-instead-of-12bn-debt-cancellation-fashola/

The contract for the 2,733km new Lagos-Kano rail was first awarded by former President Olusegun Obasanjo in 2006 at a cost of $8.3bn to the Chinese company (CCECC) but could not be executed due to paucity of funds.

It was re-awarded to the same contractor by the Goodluck Jonathan administration in 2012 for execution in six phases, starting with the Lagos-Ibadan stretch.

Okoroawusa:
There is no debt free country in the world. Even the U.S.A., England, Germany are not debt free countries.

seunmsg:
I agree totally with Fashola. We cannot develop without building massive infrastructure all over the country. The only thing we got from the Obasanjo’s loan repayment is the accumulation of more loans by subsequent governments.

If the money that was used to pay off the Paris loan was used to build the Railway lines that Buhari is now building all over the country, we would have been more developed than we are right now.