NIGERIA BROKE AS PRESIDENT BUHARI GOES FOR FRESH LOANS

Mijovia News, September 14th, 2021 The precarious state of the Nigerian economy has pushed the FGN to solicit for a survival $4,054,476,863 and €710 million loan. These new batch of loans are coming from World Bank, French Development Agency, EXIM Bank and IFAD.

The above amount extends Buhari’s “developmental” Loan plan of 2018-2020. It is good to remind Nigerians that Nigeria’s total debt in 2015 was $22.5Billion. As at March 2021 (excluding the above figures) the total debt profile was $87.3Billion - This is about 290% increase from the 2015 debt level and unprecedented.

THE NIGERIA GOVT IS BADLY BROKE. Nigerians should expected more Federal Govt tax increase on goods and services. Waivers and Subsidies that stimulates the economy will be removed to attract more revenue at the cost of increase in prices. More stealing from the FGN using commercial banks, disguised in form of Bank charges. Expect the FGN to start Auctioning some Federal Govt assets and Minerals deposits in the coming months. Expected more delays in the payment of federal civil servants salaries. The chances of contractors not getting paid on time has will Increase to over 150% and majority of the contractors will be bankrupt as they may not be able to service the loans used to execute the projects. With the Pie containing VAT (over 20% of the revenue) leaving the National Cake (courtesy of Lagos and Rivers), it is certain that about 60-70% of current capital projects going on around the country will be abandoned for the foreseeable future.

If you are in Business, rely on economic numbers coming from government economists and agencies (especially the NBS) at your own peril. The economy is worse than what is been projected or expressed by those charged with governance. Never expect miracle from country of about 200 million people that only survive on federal government sharing revenue every month than been productive. Lastly, Nigerians should also know that with the rising cost of debt profile and erratic oil revenue, the Debt servicing to Revenue ratio will be about 92% in this 3rd Quarter of 2021, if not more. This means that after paying back Loan Interest (capital included in some cases) to China, World Bank and others, we will be left with about 8% of the revenue. Your guess is as good as mine. The government deliberately ruined the economy and now, everyone will bear the brunt. Follow Mijovia News on all social media platforms.

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