MAJOR REVELATION!!! President Muhammadu Buhari Has Mortgaged The Future Of Nigerians – Top Business Expert Cries Out To The World

By Joshua Amaugo June 25, 2018 17:06

MAJOR REVELATION!!! President Muhammadu Buhari Has Mortgaged The Future Of Nigerians – Top Business Expert Cries Out To The World

The Managing Director/Chief Executive Officer, Financial Derivatives Company Limited, Mr. Bismarck Rewane, has raised concerns, over the nation’s ability to service its foreign debts, as he unwittingly accused President Muhammadu Buhari of mortgaging the future of Nigerians.

Rewane who made this known during a presentation at a breakfast session, sponsored by Rand Merchant Bank, in Lagos, said his prediction was based on the multiple scenario analysis by the firm.

He said the forecast for the nation’s economy, showed a mixed outcome of positivity and negativity, and inflation is close to an inflection point, and that government revenue will remain robust, thanks to oil proceeds.

His words: “The pressure on the exchange rate will build up, due to increased liquidity and demand pressures, and there would be a temptation to appreciate the naira for political expediency.

“Key policy reforms will take the back burner for politics. Nigeria’s foreign debt service will become a potential problem. Nigeria’s external trade will be more balanced between Asia, the European Union, and America.”

The Financial Expert, noted that there was also a possibility of capital flight as elections were approaching, and the nation’s Gross Domestic Product, GDP, growth trajectory, will be sustained, albeit at a slow pace, and will force the marginal propensity to consume to blink.

According to the debt stock data: “The total public debt stock (external and domestic debt stock of the Federal Government and sub-nationals) as of the end of June 2017, was N19.63 trillion, (about $64.19 billion at N305.9/$1), made up of external debt stock of N4.6 trillion (about $15.05 billion), and domestic debt stock of N15.03 trillion (about $49.15 billion).

“The domestic debt stock of the Federal Government and sub-nationals accounted for 76.56% of the total public debt stock, while their external debt stock accounted for 23.44%.

“Furthermore, the total public debt stock increased by 2.5 percent from N19.16 trillion (about $62.54 billion), to N19.64 trillion (about $64.19 billion), during the period under review.

“The total external public debt stock of the Federal Government and sub-nationals increased by 8.98% from $13.81 billion, in March 2017, to $15.05 billion in June 2017, while the domestic debt stock of the Federal Government and the sub-nationals increased by 0.67% from N14.93 trillion, in March 2017, to N15.03 trillion, in June 2017.”

The Implication of the data shows that since President Buhari was sworn-in, the nation’s debt has risen by 61.96% in only two years.

Also, a review of the total foreign debt profile of the Federal and the 36 States Governments and the Federal Capital Territory, FCT, by National Bureau of Statistics, NBS, also shows a continuous rise since the coming of the present administration, from $10.718 billion in 2015, to $11.406 billion in 2016, and $15.047 billion in 2017.

Out of the current total figure of $15.047 billion, the Federal Government accounts for $11.106 billion, or about 74 percent, while the 36 States of the Federation and the Federal Capital Territory, FCT, Abuja, owe about $3.94 billion, or 26 percent.

The Federal and State Government shares of the debt stock grew from $7.349 billion and $3.369 billion in 2015, to $7.84 billion and $3.568 billion in 2016, and $3.94 billion and $11.106 billion in 2017, respectively.

The NBS gave further dis-aggregation of the country’s foreign debt to include $9.67 billion as multilateral debt; $218.25 million as bilateral (AFD), and $5.15 billion from the Exim Bank of China credit to the Federal Government.

According to statistics agency, out of the total N14.017 trillion national debt stock, the Federal Government accounts for about N11.058 trillion, or 78.66 percent, against about N2.959 trillion, or 21.34 percent by all the States and the FCT.

A further breakdown of the Federal Government domestic debt stock by instruments, show that about N7.56 trillion, or 68.41 percent were in bonds; N3.28 trillion, or 29.64 percent in treasury bills, while N215.99 million, or 1.95 percent went into treasury bonds.

A Senator representing Kogi West, in the Upper Legislative Chamber, Dino Melaye, had while raising the concern in the Red Chamber, lamented that the All Progressives Congress, APC, under President Buhari, has accrued N11 trillion debt in three years, as against N6 trillion borrowed by the Peoples Democratic Party, PDP, in 16 years.

He said: “About $5.5 billion was borrowed from euro bond; what part of it will the youths of this country benefit from?”, he asked

“About $1 billion is to be spent on security, and how does this affect the youths of this country.

“Without fear or favour, the Peoples Democratic Party, in 16 years, borrowed N6 trillion, and this government in three years, has borrowed N11 trillion, but there is no specific programme that will empower the youths”, Dino lamented.

Also reacting to huge debt profile, a foremost Political Economist, Lawyer and former United Nations, UN, official, Professor Kingsley Moghalu, had described Nigeria’s rising debt burden as worrisome, especially when history shows that reliance on foreign loans has failed to contribute to the economic growth and development of the country.

He said: “The Federal Government recently requested the approval of a 5.5 billion dollar foreign loan from the National Assembly, but when you consider that more than sixty percent of revenues earned in Nigeria already goes into debt servicing, the country is clearly moving into dangerous territory.”

Emphasising the importance of policy readjustments in Nigeria, Professor Moghalu stated that when countries continue to borrow, there is very little left to fund services and development, which in turn affects important social infrastructure, such as health and education.

“Nigerian governments consistently claim to be focused a lot on physical infrastructure, but they fail to deliver excellently in terms of the quality of such projects. The percentage of Nigeria’s spending on development is one of the lowest in Africa. But that does not mean we have to increase taxes”, Professor Moghalu said.

Mrs. Catherine Pattillo, Assistant Director, Fiscal Affairs Department, International Monetary Fund, IMF, had in one of his speech, described Nigeria’s debt to revenue ratio, which she put at 63 percent, as “extremely high”.

“The ratio of Federal Government interest payment on debt to revenue is extremely high, 63 percent. So there is a need to build revenue, so that you have more space to spend on infrastructure, social safety nets, etc, otherwise interest is eating up most of your revenue”, IMF lamented.

The Peoples Democratic Party, PDP, had while taken a swipe at President Buhari’s huge debt profile, described it as an attempt to push the nation down into the black hole of debt, that will affect negatively the future of Nigerians.

#SPONSORED!!!

(FREE) secret Fruits that Increased My Manh0d size and Lasting Power in 7days… CLICK HERE TO GET IT!!! 

 

TO BECOME A POST-NIGERIA PARTNER TODAY, CALL US: 0705 777 5786.

Which Nigerian Political Party Will You Be Supporting In The 2019 General Elections???

View Results