Nigeria-Foreign Loan Dependency Syndrome By Dr Kenny Odugbemi
Background knowledge of financial wrecklessness
Nigeria has experienced 70% money growth moving from N53trn to over N93trn
We gathered recently that some high ranking Senator got Constituency project to the tune of N500m, where we have debt/revenue range of over 52% this calls for effective monitoring of this Constituency project to follow productive growth trajectory rather than giving consumptive palliative, there had been a lack of public participation of fiscal policy with high tendency of diminishing Renew hope agenda, giving room for CBN unwholesome mopping of liquidity, with inflation rise from 29.9% to over 30% as our crude oil production estimate fall to 1.32mbpd due to uncontrollable oil theft by cabal systemic formation in South South region
CBN through classical economic theory is only after reducing inflation whilst productive capacity diminishes as the bank lending rate will now be between 30-35)% making borrowing by organizations so difficult, these constraints will lower productive output with attendant employee job losses
The federal government of Nigeria ñeed to put an end to the practice of offering abundant oil reserves to access foreign loans.
We have not being able to effectively manage our vital minerals exclusively exploited by unpatriotic cabal with dubious and unprofiled license ,where in they pay peanut to federation account after forecefull acquisition C-of-O for lands where we have heavy deposit mineral deposit, which federal government ought to declare as National asset just like offshore oil exploration with proportionate return into our external reserve. It noteworthy to state here that Mineral deposits are meant to develop areas of exploration through derivatives and also to facilitate National Infrastructural development
Most of these exploited mineral resources such as lithium, cobalt, l, manganese etc are the essential bye products required for the mass production of smartphones and electric batteries
Most of the foreign loan negotiations are always in favour of our lender, who wields more power and influence setting of financial constraints for Nigeria characterize with imbalance with limited transparency creating opportunities for corruption paving way for uncontrollable exploitation treating Nigerià as a beggarly nation.
After loan maturity, these loans are often renegotiated in asymmetric terms that are not transparent and wrongly priced
These loans are collateralized with our natural resources against natural advocacy for sustainable debt repayment practices making it very difficult for loan repayment As this Natural resource as debt settlements are linked unproportionally during this era that the World is transiting from fossil fuel to other renewable and other cleaner energy sources
Nigeria will use a significant proportion of our oil to settle our debt agreement NNPC & AfriExim bank transaction using another SPV, whilst NNPC guaranteed the transaction
Way forward
It is now time for us to carry out our Natural resources asset valuation, through MIFi” to generate more capital